Bouygues Telecom

Improving fraud detection with entity analytics

Created in 1994, Bouygues Telecom is the third largest mobile phone

Overview provider in France. The company, which has 10 million customers,
aims to become the “preferred brand of mobile, fixed, TV and Internet
Bouygues Telecom
Paris, France communication services” with an emphasis on customer service and
Telecommunications support.
www.bouyguestelecom.fr

Solution components: The need

● IBM® InfoSphere™ Identity Insight
“IBM InfoSphere
Identity Insight tells us
the true story of who is a
real customer and who is
a fraudster.”
—Mathieu Martinez, Manager of Fraud,
Bouygues Telecom
With the anonymity of the Internet, greater access to information
online and large profits to be made by reselling hot products like the
iPhone, subscription fraud is becoming a common problem for telcos.
As a result, having insight into “who is who”, “who knows who” and
“who does what” is essential in stopping fraud before financial losses
occur. Just ask Mathieu Martinez, Manager of Fraud at Bouygues
Telecom. “If I can detect the fraudster before he’s in my system, I don’t
lose the handset, I don’t lose the dealer commission, and I don’t lose
the revenue from usage,” says Martinez.
The solution
Bouygues Telecom uses an analysis platform based on IBM®
InfoSphere™ Identity Insight software to help it proactively uncover
online and in-store fraud by consumers, dealers and organized crime
groups, and prevent the subsequent loss of products and revenue. The
solution, which has achieved 100 percent of Bouygues’ goal for detect-
ing fraudulent account activation attempts, enables the organization to
automatically analyze customer information (including phone number,
bank account, postal address, IP address or any other distinguishing
attribute) across disparate data sources. The information is scored
using sophisticated algorithms and compared against historical infor-
mation to reveal possible matches, such as if the postal address for an
order matches the address of a known fraudster, if orders from several people
are placed from the same IP address, if two customers have similar names, or if
dealers circumvent the vetting process by using their own credit cards and
taking cash payments.
The algorithms take into account the company’s risk based on product cost
along with data from usage monitoring and payment collections to provide a
comprehensive view of customer behavior. With this insight, staff can identify
new patterns fraudsters are using to reduce fraud across the industry. The com-
pany also has a comprehensive view of system controls so it can identify and fix
missing controls in the activation system at a lower cost.
“Before implementing Identity Insight, it was impossible to know if two fraud-
sters were using a similar name or if there was repeated fraud at the same
address,” says Martinez. “Now we can see the links and ask the customer for
more information before we complete the order.”
According to Martinez, with InfoSphere Identity Insight, Bouygues Telecom
didn’t experience the financial losses its competitors did from iPhone theft. The
information gathered also helped lead to the arrest of nearly a dozen people
participating in a subscription scam.
What makes it smarter
● Proactively analyzes disparate data and identifies patterns to prevent fraudu-
lent activity by consumers, dealers and organized crime, and to support arrests
and prosecution
● Detects 100 percent of Bouygues’ goal for fraudulent account activation
attempts, mitigating the risk of customers defaulting on payments
● Provides new insight to help the company shape products and dealer controls
to minimize fraudulent losses
For more information
To learn more about how IBM can help you transform your business, please
contact your IBM sales representative or IBM Business Partner.
Visit us at: ibm.com/software/data/infosphere/identity-insight
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July 2010
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