A new study from Juniper Research reveals that global roaming fraud traffic is poised to surge by an astounding 700% over the next five years, as scammers seek to exploit the expanding market. The report, titled “Roaming Fraud Market 2023-2028,” not only assesses the scale of the global roaming market encompassing data, IoT, SMS, and voice but also estimates the losses incurred by operators due to fraud.
It evaluates the preparedness of 60 countries to combat emerging fraud techniques and their adoption of roaming fraud mitigation solutions. Juniper Research predicts a substantial growth in global outbound roaming data, from 230,000 PB in 2023 to over 2.2 million PB by 2028, driven by data-intensive 5G roaming connections. While this presents an opportunity for telecommunications companies, it also raises concerns about cybercriminals exploiting this growth, particularly through techniques like SIM box fraud.
SIM box fraud is characterized as an “interconnected bypass” scam in which threat actors intercept international calls and reroute them through a local device known as a SIM box. This device subsequently routes the connection back into the network as a local call, effectively depriving the operator of legitimate revenue. These devices are capable of supporting hundreds or even thousands of unpaid or low-cost SIM cards, often acquired fraudulently.
Roaming vendors, interviewed by Juniper Research, concur that bilateral 5G roaming agreements are now essential to detect fraudulent connections and assist operators in maximizing future roaming revenue. The report predicts that the market for these solutions is expected to generate $8 billion globally by 2028. A 2019 report highlighted that telecoms fraud is increasingly viewed as a low-risk alternative to traditional financial crime.
To summarize, Juniper Research’s study anticipates a substantial surge in global roaming fraud traffic in the coming five years, driven by the growth of the global roaming market and the rise of data-intensive 5G connections. The report assesses the readiness of various countries to combat these emerging fraud techniques and their adoption of fraud mitigation solutions.
SIM box fraud is highlighted as a significant concern, as it intercepts international calls and reroutes them through local devices, depriving operators of revenue. The study suggests the need for bilateral 5G roaming agreements to detect and prevent fraudulent connections and predicts a substantial market for these solutions, expected to generate $8 billion globally by 2028.
