Press Releases

KT and WeDo collaborate on using artificial intelligence to detect fraud

September 25, 2019

Posted by: Anasia D'mello

KT Corporation and Portugal-based WeDo Technologies have signed a Cooperation Agreement for AI-FMS (Artificial Intelligence based Fraud Management System) development and sales.

KT’s Deep Learning-based Artificial Intelligence (AI) module has been implemented and tested on WeDo’s RAID FMS system. This AI module, trained with KT Big Data, has showed strong results for fraud detection and prevention, and has reportedly proved to be effective for a number of fraud use cases, with a high degree of accuracy.

KT and WeDo plan to supply the AI-based International Revenue Share Fraud (AI-IRSF) module with the RAID platform to communication service providers (CSPs) by the end of 2019.

(Also see News: California-based Mobileum to acquire roaming, fraud and revenue management firm WeDo Technologies)

KT’s DL (Deep Learning) based AI module has been implemented and tested on WeDo’s RAID FMS system. This AI module, trained with KT Big Data, has showed strong results for fraud detection and prevention, and proved to be highly efficient and effective for a number of fraud use cases, with very high accuracy. KT and WeDo plan to supply the AI-IRSF (AI based International Revenue Share Fraud) module with the RAID platform to CSPs (Communication Service Providers) by the end of the year.

AI-IRSF is an AI system that prevents a fraud that involves hacking of IP-PBX (IP telephony exchange) to generate illegal calls to international numbers.

With this Cooperation Agreement, KT will develop and supply more AI based FMS modules to integrate with WeDo’s Fraud and Risk Management system. Additional AI based modules will also run on the WeDo’s system, and the modular capability of RAID will allow CSPs to choose from different fraud detection models for their market similar to how one chooses applications from a smartphone app store. The open architecture of RAID will also allow other CSPs to develop their own models as well.

WeDo Technologies is now part of the Mobileum group, an enterprise software and analytics company in roaming, security, fraud and risk management serving more than 700 telecommunication providers in more than 180 countries. According to IDC, the global AI application market will rapidly expand from US $15 billion (€13.6 billion) (2017) to US $56 billion (€51 billion) in 2020 with CAGR of 55%.

KT plans to apply this AI technology with KT group’s financial subsidiary BC Card for the safe financial operation and Korea’s No.1 caller info app “KT WhoWho” for the spam-free mobile communication. KT AI, that has been trained with KT group’s extensive Big Data, will secure safety and efficiency of telecommunication FMS. Furthermore, KT will extend its AI ability to global financial FDP (Fraud Detection and Prevention) market.

Global AI-FDP which had the market size of US $1.4 billion (€1.2 billion) (about 9% share of the total market) in 2017, is expected to grow to US $5 billion (€4.5 billion) in 2020. As Young Woo Kim, KT’s senior vice president, head of Global Business Development Unit, says, “Within the Cooperation Agreement with WeDo, KT’s AI and Big Data technologies combined with WeDo’s Global FMS Market ability will become the very successful first step toward global AI market advancement.”

Rui Paiva, WeDo Technologies CEO and Mobileum chief of revenue Assurance & Fraud Management Business Unit & CMSO, adds, “This Cooperation Agreement with KT, is a landmark development for the fraud management market, in a path to provide deep AI fraud prevention capabilities, successfully tested with real life data, to the wider community”.

Comment on this article below or via Twitter @IoTGN