TransNexus: Next Generation Telecom Fraud Detection

Jim Dalton, Founder and CEO
TransNexus is a leading innovator in fraud detection software for telephone service providers. "Telecom fraud has become the number one challenge for the telephone industry. Fraud attacks on telephone networks have become just as relentless as cyber-attacks on data networks," says Jim Dalton, CEO of TransNexus. A recent survey conducted by the Communications Fraud Control Association, the premier international agency for revenue assurance and fraud control, estimates telephone companies lost over $46.3 billion in 2013 because of telecom fraud. Dalton adds, "Telecom fraud and fraud solutions have been around for decades, but the world has changed. The old technology of the Public Switched Telephone Network (PSTN) is being replaced by new Voice over IP (VoIP) technology which gives fraudsters many new ways to hack telephone networks. The fraud tools for PSTN technology are no match for VoIP technology. Recognizing this problem, TransNexus is the first and only company offering SIP Analytics® fraud detection that stops fraudulent VoIP calls before they occur."

Fraud detection based on PSTN technology relies on analysis of Call Detail Records (CDRs), but CDRs are created after a call is completed. So by design, PSTN fraud systems can only detect a fraud attack after calls have ended and the CDRs are analyzed. This analysis technique is too slow. With VoIP technology, thousands of fraudulent calls can be made in minutes, generating thousands of dollars in losses before the first CDR is analyzed. TransNexus SIP Analytics® is different. It analyzes the call signaling before call setup and can automatically block or divert fraudulent calls in real time.

TransNexus is well positioned to thwart VoIP fraudsters. The company has been focused on VoIP routing, monitoring and analysis applications since its beginning. TransNexus was founded in 1997 at the dawn of the VoIP industry.
The company's initial goal was to develop a service platform for secure Internet telephony peering and billing over the public Internet. That platform was NexOSS which has grown into a full suite of sophisticated applications for managing VoIP calls. TransNexus's first major telephone customer was MCI in 2001. MCI deployed NexOSS to manage routing and CDR collection of VoIP calls outside of MCI's global legacy telephone network. In 2003, NTT Global Clearinghouse in Japan, a VoIP and data service provider needed a solution that enabled the overlay of VoIP services on their global IP data network. After an extensive process of evaluation of its systems with TransNexus, the company decided to deploy NexOSS—a suite of applications for managing VoIP services. NexOSS provided NTT with the intelligent call routing and Call Detail Record (CDR) mediation needed for managing VoIP calls over their global IP network.

Fraud attacks on telephone networks have become just as relentless as cyberattacks on data networks

In addition to NexOSS, TransNexus also sells specialized tools for traffic reporting, quality of service monitoring and now fraud control. Dalton is bullish on the growth prospects of TransNexus's specialized tools. "Our specialized tools fulfill a targeted need, are simple to deploy and are highly cost effective. These new products are winning deals with new accounts that are using software from our competitors," says Dalton. This strategy has been most effective in the market for fraud management software. Dalton attributes TransNexus's competitive success to two factors. First, TransNexus focuses on solutions that provide unique and critical features for the products of market leaders in VoIP and unified communications, such as Oracle Acme Packet and Broadsoft. Second, TransNexus is first to market with innovated solutions such as SIP Analytics® fraud detection.


Atlanta, GA

Jim Dalton, Founder and CEO

Provides software solutions for fraud management, dynamic least cost routing, quality of service routing, direct peering, traffic analysis, and billing to major VoIP carriers worldwide.