The CPaaS sector revolutionized the way web developers access and utilize communication services that were once considered complex and obscure. By democratizing communications, CPaaS providers have opened up a world of possibilities for countless applications.
Among these services, SMS messaging emerged as a standout star. It brought about simplified notifications and enhanced security with two-factor authentication. Today, SMS APIs are readily available from a variety of CPaaS, UCaaS, and even some CCaaS providers. The CPaaS sector has continued to evolve, expanding its offerings to include AI, CC, and more. In line with this trend, Vonage has just announced a new set of services to counter fraud. Vonage Protection Suite aims to empower web developers to become proficient in counter-fraud practices. With these new offerings, Vonage is equipping developers and businesses with the tools and knowledge they need to combat fraudulent activities effectively. The Vonage approach to fraud-protection is to tie monitoring, alerting, and automated controls to SMS and voice traffic. It’s an interesting expansion of its two-factor and Number Insight products.
Fraud is a Problem
The Communications Fraud Control Association (CFCA) conducts a comprehensive fraud loss survey every two years, providing valuable insights into the scope of fraudulent activities. The 2021 Fraud Loss Survey revealed a staggering increase in fraud losses, reaching nearly $40 billion, representing a 28% increase since 2019.
This alarming trend has been accompanied by a sharp rise in spam complaints and an upward trajectory in the average cost of data breaches. The impact of scams continues to result in billions of dollars in losses, with phishing attacks and artificially inflated traffic posing significant challenges for businesses. Neglecting this issue can have dire consequences, exposing businesses to substantial financial losses.
Vonage's understanding of its customers' concerns regarding fraud and security threats is informed by over a decade of API experience, and the company has dedicated itself to providing the necessary tools and knowledge to effectively combat fraud.
It is worth noting that inaction is unfortunately the default fraud response for many providers. This is largely due to the fact that, in most cases, it is the provider’s customers, rather than the providers, who bear the financial burden of fraud. Shockingly, fraud often contributes to providers' revenue streams. Vonage appears to be ready to break this cycle and is determined to lead by example, actively working to counter fraud and protect its customers' interests. Enter the Vonage Protection Suite.
The Vonage Protection Suite's Components
The Vonage Protection Suite, headlined by its Verify and Fraud Defenders services, complements its recently announced AI Acceleration Suite. The Protection Suite offers tools to help shield business es against fraud attacks. This includes:
“In an increasingly digital world, our customers’ security needs continue to evolve. To meet this growing need - and demand - for better ways to shield them from fraudulent events, businesses today must protect themselves and their customers with agile security solutions that can be seamlessly integrated with their existing communications solutions and platforms,” said Savinay Berry, EVP, Product & Engineering for Vonage.
A New Way to Counter Fraud
The Vonage Protection Suite also includes advanced reporting including redacted data that can be used for compliance and audits. More counter-fraud services are planned.
The collective responsibility for counter-fraud activities often leads to the overall neglect of counter-fraud measures. To effectively manage fraud, it is crucial to have improved tools in place. Currently, application developers working on SMS apps often have minimal interaction with their security team, hindering the ability to address potential vulnerabilities adequately. To bridge this gap, it is essential for vendors to provide tools that allow security personnel to collaborate with app developers and gain a comprehensive understanding of how their applications can be compromised. It is crucial for vendors to broaden the conversation within the customer base, recognizing that applications are no longer solely about channels, technology, and APIs. Engaging security teams becomes paramount in maintaining defenses.
Vonage is committed to equipping its customers with carrier-grade tools, recognizing the need to fight fraud collectively. These tools are being made available to customers at no additional cost, demonstrating Vonage's dedication to empowering customers and enhancing their fraud prevention capabilities.
Dave Michels is a contributing editor and analyst at TalkingPointz.
