Stopping the Scam: Anomaly Detection and Fraud Prevention with MQTT
As fraudsters continuously evolve tactics to exploit vulnerabilities, organizations are under immense pressure to fortify their defenses and detect anomalies in real time. The cost of fraud to a business is upwards of $4.5 million a year and companies are proactively looking to find anomalies with data.
MQTT can be leveraged to thwart fraudulent activities thanks to its ability to keep connectivity and messaging reliable and secure. For companies in finance, telecommunications, and supply chain and logistics, this protocol proves critical for its ability to integrate with analytics platforms and its ability to enable real-time monitoring of massive amounts of data.
Challenges of Data Quality and Integrity in IoT Environments
However, amidst the wealth of data lies a formidable challenge: ensuring data quality and integrity in IoT and IIoT environments. In the interconnected world of IoT devices, data is generated at an unprecedented scale and velocity, presenting a double-edged sword for companies. While this data holds potential for uncovering insights and detecting fraud, its sheer volume and heterogeneous nature lead to issues of data quality and integrity.
Incomplete, inaccurate, or inconsistent data can impair the ability of telecom companies to perform meaningful analysis, leaving them vulnerable to undetected fraud schemes. Moreover, the disparate formats and protocols used by IoT devices exacerbate the challenge, making it difficult to rationalize data from diverse sources.
The Role of MQTT and Data Transformation
Anomalies in data patterns often serve as red flags indicating potential fraudulent activities. However, identifying these anomalies amidst large amounts of data can be like finding a needle in a haystack. With a sophisticated MQTT broker, enabling real-time monitoring and integration of data from IoT, IIoT, and edge devices allows organizations to detect anomalies as they occur.
By integrating with existing analytical frameworks, MQTT empowers data scientists and analysts to derive valuable insights. Through real-time data streams delivered by MQTT, users can gain a granular understanding of customer behavior, network performance, and emerging fraud patterns, laying the foundation for proactive risk mitigation strategies.
Furthermore, HiveMQ’s Data Hub and MQTT facilitate data transformation, enabling companies to put data into context and extract actionable insights. Through protocols such as MQTT-SN (MQTT for Sensor Networks) and MQTT-TLS (MQTT with Transport Layer Security), companies can implement robust security measures to safeguard data integrity throughout the transmission process.
Real-Time Resilience Leads to Millions of Dollars Saved
Our customer, Araxxe, a leading telecom provider faced a surge in fraudulent activities targeting their network infrastructure. Araxxe’s mission is to help telecommunications companies maximize profitability by reducing fraud, eliminating unnecessary spending, ensuring billing accuracy and helping to maintain brand reputation.
Since 2005, Araxxe has utilized a global network of robots, or test call generators, for two key services. First, is revenue assurance, where the robots check that every transaction is correctly measured and billed at the right price. Second, is fraud detection, where they prevent revenue loss by identifying and quickly removing fraudulent accounts from the network.
By implementing MQTT, they were able to detect fraud in real-time, increase monitoring on each of their robots, and detect over 25,000 fraudulent events. The real-time resilience afforded by MQTT not only saved $800 million in potential losses but also bolstered customer trust by ensuring uninterrupted service delivery.
Protection from Bad Actors with MQTT
HiveMQ’s platform empowers organizations to harness the power of real-time data streaming for anomaly detection and fraud prevention. By leveraging MQTT's capabilities, organizations can gain deeper insights into their data, detect anomalies as they occur, and implement proactive measures to safeguard against fraudulent activities.
Find out more about how an MQTT broker can help your business with asset tracking, real-time monitoring, and more in our Buyer’s Guide.
![Ashley Lozito, Senior Communications Manager at HiveMQ](/sb-assets/f/243938/192x258/577ae6d20e/portrait-ashley-lozito.jpg)
Ashley Lozito
Ashley Lozito is a corporate marketing professional with 15 years of experience amplifying brand stories and helping B2B buyers convert. Her work for high-growth tech organizations has been featured in Forbes, Wall Street Journal, TechCrunch, VentureBeat and more. She's helping to build HiveMQ’s brand story and thus helping enterprises leverage IoT, IIoT and MQTT to transform their businesses.