Fraud costs telcos USD240 million per annum

1 Nov 2005

Ecuadorian telcos are losing up to USD240 million per year as a result of fraud, according to an investigation by the US regulator, the FCC. According to the report the practice of bypassing, whereby international calls are billed as local ones, is resulting in Andinatel charging for only 50% of actual international calls and Pacifictel just 20%; neither company employs any kind of anti-fraud system.