OPERATOR REVENUE LOSSES FROM SMS FRAUD SHRINKS 66 PCT BY 2027 - JUNIPER RESEARCH

KUALA LUMPUR, May 2 (Bernama) -- The operator revenue loss to short messaging service (SMS) grey route traffic will decline by 66 per cent over the next four years, owing to the increasing adoption and efficiency of SMS firewalls, according to a new report by Juniper Research.

It predicts that these firewalls will save operators over US$4.4 billion in lost business messaging revenue between 2023 and 2027, by identifying fraudulent traffic and blocking it in real-time. (US$1=RM4.46)

In a statement, Juniper Research said these savings will be driven by the ability of SMS firewalls to detect sources of fraudulent traffic earlier and more efficiently through the increasing use of machine learning.

By 2027, the report predicts that less than one per cent of business messaging traffic will be attributable to grey routes, compared to 4.3 per cent in 2023.

However, as the role of business messaging evolves, the report urges operators to develop messaging firewalls to be deployed as part of a larger security value chain that protects operators over more channels than SMS alone.

The report anticipates that Rich Communication Services (RCS) messaging will be a crucial technology over the next four years, and firewall vendors must tailor fraud detection and mitigation services to this technology.

In turn, the report identified the Security-as-a-Service model as a key strategy for future firewall development, in which this business model includes providing managed security tools over multiple operator‑led technologies.

It predicts that vendors will soon compete on the completeness of their multi‑format firewalls, including the efficiency of artificial intelligence (AI)-based fraud detection solutions over multiple messaging technologies.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

-- BERNAMA