Fraud occurs when someone uses a service to defraud a consumer, business, or service provider by obtaining free services or services that the individual concerned is not entitled to. Some of the more common methods and indicators of fraud include:

• Illegal tapping of utility service points
• Bills returned in the mail with a claim that the customer is not at that address

Fraud can be identified in various ways. For example, a consumer may identify fraud on a bill, noting charges for services that were not requested or used. Alternatively, a service provider may identify irregular usage patterns that may indicate fraud.

Traditionally, companies have used legacy fraud management systems to identify and manage fraud.