1. i3forum contractual fraud clauses
Katia González
Head of Fraud Prevention BICS, Chair i3F Fraud Group
GSMA FASG#10 - February 2018

2. Agenda
What is i3Forum
Approach to fight fraud
Contractual proposal

3. Mission at the service of the carrier community
What is i3Forum ?
Founded in 2007
Represents the international wholesale carrier industry with
28 Tier1 carrier members globally
Mission at the service of the carrier community
Vision and education
Foster innovation and transformation,
Representation
Carrying 75% of the worlds international traffic
Partner with industry bodies: GSMA, Global Leaders Forum
Mission at the service of the carrier ecosystem
Vision and Education : explore upcoming transformations, opportunities, challenges
Foster Innovation and Transformation : shape and promote key enablers, share best practices
Representation : represent the Carrier Industry in discussions with other bodies

4. i3Forum working groups Actif since 2011 Operational cooperation
IMS interconections:
Technical, operational and business angles
Working with GSMA
NNI interface definition
End-to-end Service Interoperability
Business models for IMS interconnections
Transition to IP/ IPX :
Self-Certification Tool Kit” initiative
Network Functions Virtualization :
Whitepaper on Operational impacts of NFV for Carriers
Internet of Things :
Whitepaper analyzing the IoT eco-system, Carriers’ position, impact for carriers
Unified Communication :
Whitepaper on UC evolution
Fight against Fraud
Actif since 2011
Operational cooperation
Best practices
Contractual guidance
*Katz y Callorda *Medido por el índice de popularidad desde una tasa inicial del 30%
**Qiang et. Al (2009) World Bank

5. i3Forum approach to fight fraud
INDUSTRY CHALLENGE
COMPREHENSIVE
i3Forum guidelines
Operators are responsible for securing their networks from exposure to fraudulent use
Possible to raise disputes in case of fraud
Withholding payments may be accepted
Makes sense from a fraud scenario perspective
There is a direct financial impact on fraudsters
All the downstream suppliers accept to withhold payments
Documentation
Timely
An industry wide approach where both MNOs and wholesale carriers collaborate is key
International fraud impact remains damageable to the Industry:
60% (-10% vs previous survey) equivalent to 17,3Bio USD
FINANCIAL IMPACT
ADOPTION
Negating the fraudsters revenues is currently the most achievable way to have a negative impact on them / deter them from
It is key that all industry partners play a fair game : timely, fair conditions, fair process while each party keeps its own responsibility
Fuente: GSMA

6. i3F Contractual clauses for fraud
Definition
List of fraudulent behaviours
It indicates the minimum key elements:
failure to collect from the end user is not a reason to not pay the Service Providing Party;
evidence needs to be provided to support a fraud dispute;
if the Service Providing Party cannot obtain a credit note from its supplier then the amounts are considered due and the Service Receiving Party needs to pay.
In case of a fraud dispute situation, the burden of the proof and allegedly fraudulent traffic analysis is the responsibility of the Service Receiving Party.
The Service Receiving Party is ultimately responsible for all traffic sent.

7. i3F Contractual clauses for fraud
Liability & payment rules
No payment due is contingent on either Party customers payment
No obligation to establish a CN if the other Party cannot collect from end users
It indicates the minimum key elements:
failure to collect from the end user is not a reason to not pay the Service Providing Party;
evidence needs to be provided to support a fraud dispute;
if the Service Providing Party cannot obtain a credit note from its supplier then the amounts are considered due and the Service Receiving Party needs to pay.
In case of a fraud dispute situation, the burden of the proof and allegedly fraudulent traffic analysis is the responsibility of the Service Receiving Party.
The Service Receiving Party is ultimately responsible for all traffic sent.

8. Right to suspend the service
i3F Contractual clauses for fraud
Right to suspend the service
The Service Provider may suspend terminating traffic to certain dial codes / numbers in the event that it suspects or has likely evidence of fraudulent use of such traffic
Liability & payment rules
No payment due is contingent on either Party customers payment
No obligation to establish a CN if the other Party cannot collect from end users

9. Right to suspend the service
i3F Contractual clauses for fraud
Right to suspend the service
The Service Provider may suspend terminating traffic to certain dial codes / numbers in the event that it suspects or has likely evidence of fraudulent use of such traffic
If fraud is detected…
Prompt notification & CDRs
Notification if fraud traffic
Dispute opens at invoice receipt
Supporting documents provided before invoice due date
Liability & payment rules
No payment due is contingent on either Party customers payment
No obligation to establish a CN if the other Party cannot collect from end users

10. Right to suspend the service CN handling principles
i3F Contractual clauses for fraud
Right to suspend the service
The Service Provider may suspend terminating traffic to certain dial codes / numbers in the event that it suspects or has likely evidence of fraudulent use of such traffic
If fraud is detected…
Prompt notification & CDRs
Notification if fraud traffic
Dispute opens at invoice receipt
Supporting documents provided before invoice due date
CN handling principles
The Service provider will try to obtain a CN from the underlying suppliers
Liability & payment rules
No payment due is contingent on either Party customers payment
No obligation to establish a CN if the other Party cannot collect from end users

11. Right to suspend the service CN handling principles
i3F Contractual clauses for fraud
Right to suspend the service
The Service Provider may suspend terminating traffic to certain dial codes / numbers in the event that it suspects or has likely evidence of fraudulent use of such traffic
CN handling principles
The Service provider will try to obtain a CN from the underlying suppliers
Liability & payment rules
No payment due is contingent on either Party customers payment
No obligation to establish a CN if the other Party cannot collect from end users
If fraud is detected…
The Service Provider may suspend terminating traffic to certain codes if it suspects fraudulent usage
Notification if fraud traffic
Dispute opens at invoice receipt
Supporting documents provided before invoice due date
Failure to collect from the end user is not a reason to not pay the Service Provider;
evidence needs to be provided to support a fraud dispute;
if the Service Provider cannot obtain a CN from its supplier then the amounts are considered due;
the Service Receiver is ultimately responsible for all traffic sent and is responsible for the burden of the proof

12. Thank you