A Partner’s Guide to Fraud Prevention

As the VoIP industry rapidly grows, fraud attacks are becoming increasingly sophisticated and harder to spot, costing businesses millions each year, and exposing them to serious risks.

The data is clear: nearly three-quarters (72%) of all fraud cases in the UK National Fraud Database are now linked to identity fraud or account takeover. Scammers use compromised personal details as a "gateway" to gain access to VoIP platforms, turning legitimate-looking accounts into launchpads for crime.

What does this mean for channel partners?

It’s more important now than ever to Know Your Customer (KYC). At Nebula, we can verify these statistics firsthand. We have seen a significant increase in attempted fraudulent activity across our base, now more than ever, partners should review their KYC processes to ensure they’re strong enough to safeguard both their business and their customers from fraud and bad actors.

The KYC Toolkit

Integrate these industry-standard checks into your onboarding process to ensure every customer joining your platform is legitimate:

1. Check your customers online presence

A business’s online presence is often the first place a scammer slips up. 

• Domain Age: Check when their domain was registered. If a "long-established" company registered their domain in the last 30-90 days, consider this high risk. You can check a domain here.

• Functionality: Does the website actually work? Check if the social media icons actually link to active profiles or if they are just dead images.

• Social Media Correlation: If a company has no social media presence or industry connections, it could be a red flag. A real company should have a network of employees and peers.

• Review Scan: Check Trustpilot and Google reviews. Do they look manufactured? Are there any recent reviews specifically calling them out for scam activity?

2. Verify them via Companies House

The UK government recently introduced new laws requiring UK directors to be "ID Verified" by Companies House.

• Check the History: Look for "Notice of Intent to Strike Off" or recent filing rejections. These are often signs that a business has failed the government’s new identity checks.

• Company Status: Is the company listing showing as ‘Dissolved’? This could indicate a case of identity fraud, where the scammer uses the identity of a business no longer trading after gaining access to their documents.

3. Ensure details match

Scammers often impersonate other businesses and use fake data.

• Cross-check Details: Ensure the company name, email domain, bank details, and physical addresses all align. If a business claims to be London-based but provides card details from a different region, this is a high-risk indicator.

• The Street View Check: Put their registered address into Google Street View. Is it an office, a residential address, or is it a virtual address? A virtual address for a well-established company could be a red flag.

4. Initiate meetings and gather info

There is no better way to understand a customer than by actually speaking to them, preferably in person, or over a video call.

• Ask the Basics: Do they sound like who they say they are? Can they answer basic questions about the nature of their business?

• Usage Logic: Does the way they plan on using the service sound suspicious for their industry? Does this contravene the CallSwitch One Fair Use Policy?

• Too Good to be True? If a large customer signs up without asking any information on your service, and spends large amounts very quickly without a test or demo, this warrants further investigation.

Ask us!

We are well-versed in spotting fraud trends before they escalate. If you are unsure or have any suspicions about a customer, just ask, and our team will carry out a full investigation.

Trending Threats

While scams vary, these are the four fronts we see most frequently used to misuse VoIP platforms:

• Smishing: Scammers send mass texts/emails impersonating brands like PayPal, tricking victims into calling their VoIP number to reveal sensitive bank data.

• Travel Scams: Scammers pose as travel companies to take money for holidays they never intend to book.

• Prize Scams: Mass messages telling victims they’ve won a lottery or prize, used as a hook to collect bank details to "receive" the winnings.

• Subscription Scams: Scammers cold-call vulnerable people, manipulating them into signing up for recurring services they don’t need or understand.

Fraud isn’t going anywhere, but neither are the tools we use to stop it. Our platform's anti-fraud measures offer a high degree of protection, supported by a secure set of built-in safeguards that include:

• Maximum daily spend limits

• IP and number-based blocking

• Real-time call alerts and hotspot limits

While these preventative measures work effectively to mitigate risk, they are most successful when paired with partner vigilance. We provide the structural protection, but it remains the partner’s responsibility to act at the first point of contact. By stopping fraud at the door, and consistently reviewing your customer base for signs of misuse, you ensure these safeguards act as a reliable safety net for your business.

With a proactive approach to security and a commitment to robust onboarding, we can turn an industry risk into a partner advantage. Let's outsmart the fraudsters and build a stronger, more secure future for the channel.