AI-Based Fraud Detection in the Telecom Sector


Authors : Ahmad Khamees Ibrahim Al-Betar; Mahmoud Amjed Mohammad Alameiri

Volume/Issue : Volume 10 - 2025, Issue 12 - December


Google Scholar : https://tinyurl.com/4hdnde2t

Scribd : https://tinyurl.com/mv7dw32w

DOI : https://doi.org/10.38124/ijisrt/25dec072

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Abstract : Fraud remains a critical operational and financial challenge within the telecommunications sector, where subscription manipulation, SIM cloning, spoofing, and usage anomalies contribute to significant revenue leakage. Traditional rule-based detection systems are increasingly inadequate due to evolving fraud patterns and sophisticated attack strategies. This research investigates the effectiveness of artificial intelligence (AI)-driven fraud detection models in enhancing telecom security resilience and operational responsiveness. Using the Saudi Telecom Company (STC) as a case reference, the study evaluates how machine learning, anomaly detection, and real-time analytics improve the ability to identify fraudulent transactions and reduce response time. Through a qualitative review of industry practices and comparative analysis of AI-based systems, the findings highlight that predictive modeling and automated monitoring substantially strengthen fraud detection accuracy while reducing manual investigation overhead. The research concludes that AI is a strategic enabler for telecom fraud prevention, provided sufficient investment is made in data integration, algorithm training, and governance readiness.

References :

  1. Smith, J., & Patel, R. (2021). Telecom fraud evolution and machine learning strategies. Journal of Digital Security Studies.
  2. Johnson, M., Lee, A., & Brown, T. (2022). Anomaly-based algorithms for behavioural fraud detection. International Journal of Data Analytics.
  3. Al-Khalifa, S. (2020). AI-driven SIM box detection case studies in telecom. Middle East Telecommunications Review.
  4. International Telecommunication Union. (2023). Telecom fraud trends and regulatory perspectives. ITU Publications.
  5. Gupta, R., & Sharma, P. (2021). Neural network optimization for fraud analytics. Journal of Artificial Intelligence Research.
  6. Ericsson. (2023). AI applications for network security and fraud detection in telecom. Ericsson Whitepaper.
  7. GSMA Intelligence. (2022). Telecom security challenges and AI transformation. GSMA Research Insights.
  8. Creswell, J. (2018). Research design: Qualitative, quantitative, and mixed methods approaches. Sage Publications.

Fraud remains a critical operational and financial challenge within the telecommunications sector, where subscription manipulation, SIM cloning, spoofing, and usage anomalies contribute to significant revenue leakage. Traditional rule-based detection systems are increasingly inadequate due to evolving fraud patterns and sophisticated attack strategies. This research investigates the effectiveness of artificial intelligence (AI)-driven fraud detection models in enhancing telecom security resilience and operational responsiveness. Using the Saudi Telecom Company (STC) as a case reference, the study evaluates how machine learning, anomaly detection, and real-time analytics improve the ability to identify fraudulent transactions and reduce response time. Through a qualitative review of industry practices and comparative analysis of AI-based systems, the findings highlight that predictive modeling and automated monitoring substantially strengthen fraud detection accuracy while reducing manual investigation overhead. The research concludes that AI is a strategic enabler for telecom fraud prevention, provided sufficient investment is made in data integration, algorithm training, and governance readiness.

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Paper Submission Last Date
31 - December - 2025

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