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:

• Cloning of wireless handsets
• Stolen handsets
• Unauthorized third-party charging of calls
• Stolen or fraudulently obtained calling cards and PINs
• 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 calling patterns that may indicate fraud.

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