While death and taxes are life's certainties, those of us in telecommunications know that mergers and acquisitions represent a third inevitability. During M&A transitions, fraud departments must quickly integrate systems to protect against substantial losses and risk. You can't catch or stop fraud if you're not monitoring the traffic — and M&A periods are exactly when fraudsters look for gaps.
Network Integration
Different companies employ distinct fraud management approaches, and post-merger priorities include monitoring the correct traffic, streamlining duplicate records, understanding all traffic types, determining record monitoring methods (SIP records or CDRs), and establishing consistent standards across the combined organization.
Blocking
Don't assume that existing blocking policies automatically apply to new traffic. Post-merger teams should determine all blocking policies and identify protocols — both manual and automated — ensuring nothing falls through the cracks.
Business and Monitoring Rules
Carriers possess unique circumstances requiring different monitoring rules. Teams should evaluate existing rules to ensure comprehensive coverage of the new combined network and adjust configurations for all newly integrated switches and traffic types.
Hot Numbers
A well-managed hot list helps prevent fraud, lost revenue, and duplicate effort. Implementation involves collaborative sourcing, list merging, standardized criteria, and enforced expiration policies to keep the list current and actionable.
Billing Feed
Despite the delays common in billing system integration, fraud systems still require billing data. Don't overlook the billing system feed — this data helps you properly identify customers and understand the new traffic you're monitoring. Prioritize getting that feed in place early.
Fraud Ownership
Clear departmental roles prevent losses from missed fraud. Teams should establish guidelines ensuring comprehensive coverage without duplication, so everyone knows who owns what in the new organizational structure.
Rates
Accurate, current termination costs are essential for detecting high-cost destinations. Post-merger rates should reflect both companies' expenses to ensure your fraud thresholds and alerts remain calibrated correctly.
Reach Out
CFCA members are a great resource during M&A transitions — so are your FMS vendors. Your FMS vendor can recommend efficient, cost-effective pathways based on experience working with hundreds of carriers through similar transitions. When in doubt, reach out.
About the Authors — Amy Oldham is Technical Writer and Christi Vanoye is Implementation Manager at Equinox Information Systems. This article originally appeared in The Communicator, the CFCA journal. To learn more about Equinox, visit equinoxis.com or call (615) 612-1200.