VoIP fraud prevention

VoIP transit is a high risk business, you often deal with companies, who are established for international activity, provided from the countries with strong government regulation, so, they are all situated in well-known offshore countries like Cyprus, Panama, Belize etc.

The residence of such companies give them possibility not to pay for services, because you will never find the real shareholders and company owners.

The company behavior of such a company is like this:
you ask another company a VoIP terminator or VoIP transit provider to give you the possibility to route the traffic with postpay conditions;
you route 100000 minutes with the price 0.05 when you sell it and with the price 0.048, when you buy it, which totals to 5000 USD of income;
then you don't pay any bill and just close the company.

Your profit is 5000-700 = 4300 USD, because 700 USD is the price for another offshore company, which you open immediately to continue the same activity. In case you pay for the traffic the profit will be less: 100000*(0.05-0.048)=200 USD.

OK. You cannot fight these companies, when they have stolen your traffic or money, but you can protect yourself and I will help you.

The waterproof defend in VoIP is prepaid. If your partner wants to prepay the services, then there will less chances that you will be fooled. But be patient. You should give away that exact amount of services, which was prepaid, not more, otherwise your partner will use more services than they prepaid and just will not pay the difference.

If you cannot sell your services on prepaid basis (and it is really difficult in VoIP), then you need to check somehow a company, which wants to be your partner.

Here comes a short check-list, which was compiled by us at UcallWeconn, How to identify a VoIP fraud company: