Artificial Inflation of Traffic

Detect and mitigate Artificial Inflation of Traffic (AIT). Learn SMS fraud prevention best practices for carriers and explore Skyward solutions.

SMS remains essential for businesses, enabling quick delivery of critical communications like OTPs, transaction updates, and marketing messages. However, the growing prevalence of Artificial Inflation of Traffic (AIT) poses a significant threat to the messaging ecosystem. Estimated to cost brands $2.4 billion between 2022 and 2024, AIT drives financial losses across the messaging chain, impacting businesses, aggregators, and mobile network operators (MNOs). These losses, along with potential reputational damage, are pushing brands to explore alternative communication channels and emphasize the urgent need for robust anti-fraud strategies.

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What is Artificial Inflation of Traffic

Artificial Inflation of Traffic (AIT) involves fraudulent schemes where malicious actors artificially generate high SMS traffic volumes, inflating costs for businesses. This is often executed through tactics like SMS pumping, where bots or fraudsters exploit vulnerabilities in SMS gateways by triggering repeated OTP or transactional message requests, resulting in inflated charges without genuine user interaction. However, AIT’s complexity extends beyond external fraudsters — various entities within the messaging ecosystem, for instance, some untrustworthy operators may also use AIT for their own gain.

AIT’s Threats to the SMS Industry

Financial losses and risks

The impact of AIT fraud on businesses extends beyond inflated traffic, driving up operational costs and exposing brands to severe financial and reputational harm. In 2023 alone, AIT fraud was estimated to have cost businesses $1.16 billion. Platforms like X/Twitter have publicly disclosed the toll it has taken on their operations, highlighting the pervasive threat fraudsters pose as they target vulnerable brands.

Damage to reputation

For transit operators, whose role is to facilitate the routing of SMS messages between networks, being linked to fraudulent or spammy traffic can have long-lasting negative effects on their brand, customer relationships, and business opportunities. Enterprises that rely on SMS for communication (e.g., for OTPs, marketing, or notifications) may lose trust in a transit operator's ability to manage and protect their traffic. In the long run, this can lead to customer churn and a decline in revenue.

Rate/Volume-based deals exploit

One significant issue arises from agreements with aggregators that have direct connections to MNOs, as these agreements often include volume commitments. These commitments can incentivize aggregators to artificially inflate traffic volumes to meet contractual obligations and strengthen their negotiating position for future deals. This creates a complex dynamic where MNOs must address potential misuse while maintaining critical partnerships within the messaging ecosystem.

CR drop inflated by rivals

At the level of A2P providers, "CR drop inflated by rivals" occurs when competitors generate artificial traffic on a provider’s routes to lower the Conversion Rate (CR). This tactic makes the routes appear unreliable, causing businesses to shift their traffic to the rival's routes. It undermines trust in the affected provider and damages their business.

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How to mitigate AIT

Common signs include:

Spikes in SMS traffic without corresponding user activity.
High failure rates in SMS delivery.
Frequent OTP requests from a single number or location.
Unusual traffic originating from specific geographies.

Best Practices to Prevent SMS Fraud

Use Advanced Fraud Detection Tools

Implement solutions with AI and machine learning capabilities to monitor traffic patterns in real-time. These tools can identify anomalies and block suspicious activities before they escalate.

Partner with Reliable Messaging Providers

Work with providers who prioritize security and offer robust anti-fraud measures, such as rate-limiting and geographic traffic filtering.

Traffic Filtering and Monitoring

Regularly analyze traffic logs to identify and block illegitimate requests. Enforce strict validation mechanisms for incoming and outgoing messages.

Blacklisting Fraudulent Numbers

Maintain and update a blacklist of known fraudulent numbers or IPs to prevent recurring attacks.

Engage in Telecom Collaboration

Collaborate with telecom operators to detect and mitigate cross-network fraudulent activities.

To prevent artificial inflation of traffic, businesses can adopt several best practices and solutions to reduce risks. One effective approach is the implementation of SMS firewalls, which can detect and block suspicious traffic patterns, such as large volumes of messages sent to or from the same destination. These firewalls also help filter out malicious content, such as spam or phishing attempts.