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Unmasking VoIP Fraud in the UK Telecoms Industry

Unmasking VoIP Fraud in the UK Telecoms Industry

VoIP has become the backbone of UK business communication. It’s cost-effective, flexible, and essential for remote work. But as adoption grows, so does fraud, costing millions each year and exposing businesses to serious risk. For channel partners reselling VoIP, this isn’t just an IT issue. It’s a threat to customer trust, revenue, and long-term relationships. Here’s a look at the state of VoIP fraud in the UK, how it impacts you, and how we can tackle it together.

The Growing Threat of VoIP Fraud

Unlike mobile networks, which benefit from SIM-based security and tighter Ofcom regulation, VoIP operates in a more open environment, making it a target. During the pandemic, thousands of UK businesses rushed to VoIP, often skipping basic security. The result? Fraud surged. Even now, 75% of operators report entirely new types of telecom fraud appearing in just the past year.

Common scams include PBX hacking, toll fraud, and International Revenue Sharing Fraud (IRSF). Hackers exploit weak passwords or outdated systems to flood lines with premium-rate or international calls. In a matter of hours, a single breach can rack up tens of thousands in charges, usually before anyone notices.

For small businesses, that’s a devastating cost. For you as the channel partner, it’s a reputational nightmare. Customers hit by fraud don’t point fingers at distant cybercriminals; they hold you accountable. That can mean refund demands, disputes, and lost contracts.

How VoIP Fraud Works

  • PBX hacking: The most common attack. Criminals break into business phone systems, make thousands of expensive calls, and vanish before detection.

  • Call transfer fraud: Manipulates systems to reroute calls, disguising high-cost traffic as local.

  • Toll fraud / IRSF: Floods lines with calls to premium-rate numbers, sharing profits with shady operators.

  • False Answer Supervision (FAS): Inflates call durations to bill for non-existent minutes.

These scams persist because VoIP is fast, borderless, and frequently lacks adequate oversight. Without robust safeguards in place, fraudsters can deplete a business’s funds in a matter of days.

Why the UK is Particularly Exposed

Unlike mobile contracts that require ID checks, VoIP lines are easier to provision, and to abuse. The shift to hybrid work also means systems stay on 24/7, broadening the window for attacks. Many UK SMEs still rely on default passwords or skip firmware updates, creating perfect conditions for fraud.

What It Means for Channel Partners

VoIP fraud isn’t a distant compliance topic, it hits your business directly. When a client’s bill spikes due to hacking, they’ll look to you for answers. Beyond the financial exposure, your credibility takes a hit. In the worst cases, upstream carriers may even blacklist your traffic, affecting all your customers.

But there’s a flip side: partners who actively fight fraud build stronger, stickier customer relationships. Businesses value providers who not only deliver reliable VoIP but protect them from the growing risks.

How We’re Helping You Stay Ahead

As your vendor partner, we’re committed to fighting VoIP fraud together. Here’s how:

  • Education & resources: We equip you to educate customers on essentials like secure passwords, software updates, and traffic monitoring, simple steps that stop most attacks.

  • Advanced tools: Our platform features real-time traffic analysis, geo-blocking for high-risk regions, and blocklists that halt calls to suspicious premium numbers.

  • Industry collaboration: By participating in groups like the Comms Council UK Fraud Summit, we share intelligence to spot new threats early, giving you a competitive edge.

Turning a Risk into an Advantage

The bottom line? Fraud prevention isn’t just protection, it’s a selling point. Customers who see you taking their security seriously are more likely to stay, trust you with future services, and recommend you to others.

VoIP fraud in the UK is here to stay. But with the right mix of technology, vigilance, and education, we can outsmart fraudsters, and grow stronger businesses together.

Written by:

Inci Serbetli

08 July 2025

3 min read

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