Juniper Research Exposes the billion-dollar drain of Artificial Inflated Traffic and SMS Trashing

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Juniper Research has unveiled a critical whitepaper detailing the pervasive and insidious issue of Artificially Inflated Traffic (AIT) and SMS Trashing within the business messaging sector. The comprehensive study was conducted in collaboration with VOX Solutions, with the aim to cast light on fraudulent activities that have led to increased operational costs for enterprises by charging for non-existent SMS traffic.

This new research reveals that in 2023, known AIT accounted for 18% of all international A2P SMS traffic, costing enterprises, including those of notable figures like Elon Musk, upwards of $60 million annually. Such staggering figures bring to light the urgent need for mobile operators to devise and implement robust strategies to protect their revenue streams and customer trust.

Key Highlights from Juniper Research:

  • Juniper Research estimates the global cost of AIT to enterprises at $8.5 billion in 2023, signaling a dire need for immediate action.
  • By 2027, AIT is expected to account for 11% of traffic, costing $23.4 billion to enterprises, with the highest penetration in Central & East Europe, and Far East & China.
  • AIT and SMS trashing create substantial revenue for fraudsters by expanding SMS traffic volumes “artificially”.
    Sources of AGT (Artificially Generated Traffic), such as bots and AI, are increasingly complex, making detection difficult.
  • The whitepaper emphasizes the dire consequences of unchecked AIT, including the potential collapse of business messaging as a reliable channel and the shift to alternatives like OTT platforms or biometric authentication methods. Juniper Research calls upon all industry stakeholders to collaborate in combatting these fraudulent practices.

In light of these findings, the CEO of VOX Solutions, Ehsan Ahmadi, remarks, “The scourge of AIT represents one of the most stealthy and damaging threats to the integrity of A2P messaging channels today. It is imperative that as an industry, we rally together to deploy sophisticated defenses against these invisible yet costly attacks.”

“Understanding the scale of AIT is essential for the industry. It’s a pervasive issue that not only affects the profitability of SMS channels but also erodes trust in these critical communication platforms,” says Sam Barker, VP of Telecoms Market Research at Juniper Research. “Operators and enterprises must respond with sophisticated measures to safeguard against these fraudulent activities.”

The whitepaper by Juniper Research presents a detailed analysis of the business messaging ecosystem’s vulnerabilities, emphasizing the importance of innovative solutions and strategic collaborations to combat these challenges.