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CELLULAR FRAUD RUNS WILD!
Ringing Up a Costly Nightmare
Ripped from P.C. June/1995
by The P/\NTHER ( UMF / TRSi )
Every minute of every day someone gets ripped off. Always has been,
always will be. Theft takes many forms, and depending on your
viewpoint, you're either the theif or the victim.
Certainly most of us would agree that the government rips us
off; whether it's in the form of taxes or excess road tolls. Then
there's all the commercial gyps, from overpriced medical care to
outrageous costs for food and utilities.
Of course if you ask the car manufactures they'll have reasons
for passing on the cost, the tax man definitely has reasons, and so
does your friendly cellular carrier. With everyone blaming everyone
else, we're stuck in teh middle holding the bills.
Never fear, though. There's still a chance you'll get a good
night's sleep because according to the Cellular Telecommunications
Industry Association, typically one arrest is made daily in the war
against cellular fraud, a war where every day criminals ring up more
than $1.32 million in fraud. CTIA Fraud Task Force chairman Tom McClure
said 40,000 illegal numbers are activated monthly. Unfortunately
cellular fraud is seen moving from the hacker to organized crime and
drug traffickers.
Just what is cellular fraud and why the fuss over how much is
lost every year on this crime-a crime that goes unnoticed by most of us;
but yes, you guessed it, one way or another someone pays for the rising
administrative costs of policing cellular fraud. In 1993 alone, more
than $365 million was lost to cellular fraud which is defined as the act
of obtaining cellular service by fraudlent means to avoid paying for the
service. Last year a whopping $482 million was lost.
At first thought, it might seem easy to catch these criminals,
but as Cellular One of New York and New Jersey points out, in the past
two years alone, the industry has spent more than $7 million fighting
the crime. "However," they said, "almost as fast as anti-fraud
technology can be developed, criminals are finding new and innovative
ways to cheat consumers."
Interestingly it isn't always drug traffickers and felons using
cloned cellular technology, it's sometimes everyday folks who get caught
in a web of trying to save a buck. Take for example the store "fronts"
that will sell you a phone service. You won't be able to receive calls,
but you can sure make plenty of them, for a price, of course.
But that price is typically much less than the legal way most of
us do business!
Cellular fraud is nothing new. Ever since the first cellular
phones went on the air, cellular fraud has increased at near epidemic
rates. Frankly, one source said the industry was counting on the belief
that no one would figure out how to reprogram the phones for illegal
use. Oops, someone goofed big time!
FOUR BASIC TYPES OF CELLULAR FRAUD
With more than 14,000 new cellular customers every day, our
mobile society has adopted the cellphone-mobile, portable, and
transportable-as the latest in stay-in-touch technology to keep users
and their families safe, secure, and business-savvy. Of course where
there's a buck to be made, unsavory characters will be there with their
hands in your wallet. Here's what these criminals do.
First, there's "access fraud" which involves the tampering,
programming, and unauthorized use of a celllphones' mobile
identification number (MIN), and a 11-digit electronic serial number
(ESN)-the fingerprint of your phone. Every time you place a cellular
call, these numbers, unique to your phone, are transmitted to the
carrier's switch station for validation. These codes can be duplicated
and then programmed into another phone. This counterfeiting or
"cloning," is very common and most frequently used.
When your cellular phone is using another carrier system outside
your home service area, you're "roaming." When a cellular theif changes
your ESN and MIN after each call while he's roaming, this "tumbling"
confuses the cellular switch just long enough to make and complete a
call-most likely a lengthy, long distance call!
Subscription fraud is also common, someone subscribes to
cellular service using phony identification and other fraudulent
information. The industry continues to improve its verification
process and credit checks to eliminate this type of fraud.
Another somewhat easier-to-discover type of fraud is stolen
phone fraud. As the name implies, someone steals a valid subscriber's
cellular phone and makes numerous calls-usually long distance-before
service is denied.
Then there are the infamous call-sell scams. This is the
typical "cash per call" scam that involves reselling cell telephone
services obtained through any of these fraudulent methods. Usually
conducted on the street or in apartments, it attracts folks who want to
make international long distance calls, such as illegal immigrants or
drug traffickers. Last year Baltimore's Bhardwaj Esau was sentenced to
27 months in a federal prison, and his accomplice, Enayet Hussain Ahmed
got seven months after being convicted of this call-sell scam. In just
a two day period they stole thousands of dollars of cellular airtime.
TOUGH TIMES FOR CRIMINALS
Everyone agrees that this high tech war deserves high tech
weaponry, and that's exactly what the industry is using. So, with all
the criminals out there and technology at their fingertips, how
successful is the industry at nabbing the bad guys? Bell Atlantic
Mobile's in-house Fraud Task Force is using the most sophisticated Fraud
Detection System in the country to pinpoint fraudulent calling activity
and lead law enforcement officials to criminals for arrest. The company
has more than 50 full time investigators detecting and thwarting cheats.
Bob Johnson, vice president of Bell Atlantic Mobile in the
Washington/Baltimore region said, "We're quickly identifying cellular
fraud and catching offenders, which has been a tremendous savings of
money and time." He continued, "It's helping us to keep fraudulent
calls from every reaching customers' bills."
Nonetheless, keep your eyes open for any unusual calls or
activity on that monthly bill. Another tell-tale sign someone many be
fraudulent using your number is if you suddenly begin receiving lots of
wrong number calls or hang up calls on your cellular phone. Call you
carrier right away.
He stressed that customers won't be responsible for fraudulent
calls, but "they do suffer the inconvenience of having to change their
cellular telephone number if their phone has been cloned."
Using the latest intelligent software which analyzes calling
patterns, an unusually high volume of calls and other tell-tale signs of
cellular fraud, officials are getting tough with criminals. The goal is
to nab the suspects at the onset, that's why it's important for the
industry to work closely with law enforcement. Ed Kmiec, Bell Atlantic
Mobile director off financial services and fraud management said, "Law
officers' understanding of this relatively new crime, coupled with our
ability to give the precise location of criminals, has led to swift
apprehension of offenders." Not surprisingly too, cellular fraud is
often just the tip of the criminal's iceberg.
CellularOne and its parent company McCaw Cellular Communications
are developing innovative anti-fraud systems and taking numerous steps
to detect and stop cellular fraud, including Fraud Protection Feature of
FPF (Sometimes called FPP Fraud Protection Pin), which allows customers
to lock service when not using their phone.
Also, by using a new software system they're examining cellular
calls, looking at 17 call characteristics that's compared with the
customer profile. If the information doesn't readily fit a usage
profile it triggers the system and the subscriber is subsequently
notified that fraud is suspected. Other techniques, including a
pre-call verification feature, whereby a subscriber's ESN and MIN are
validated prior to a call being delivered, are being used. This
effectively eliminates tumbling fraud, according to McCaw and
CellularOne. Additionally, digital authentication and even voice print
technology are on the horizon to validate subscribers to curtail fraud.
These and other cellular companies are providing their customers
with added security to thwart cellular fraud by providing customer
number or PIN which is similar to an ATM code. During the dialing
sequence, customers enter their private PIN number which provides an
additional layer of calling security. For instance, early this year
Bell Atlantic and NYNEX Mobile Communications began using a new Fraud
Zone Protection Zone technique developed by Bell Atlantic Mobile. The
program restricts calling throughout the greater New York City area for
its customers from Washington, DC; Baltimore; Pittsburgh; and greater
Philadelphia, including Delaware and southern New Jersey. Proper
identification, along with a selected PIN code is required for those
customers while roaming in New York City before the company will
deactivate the fraud zone restriction.
It's a well-known fact (although you'd never believe lawmakers
knew it when the ECPA was passed!) that cellphones are simple radio
transmitters. It's also a fact that every phone, like each of us, has
its own unique "fingerprint." A system that tracks, identifies and
blocks illegally-made cellular calls used in deterring cellular fraud.
Let's suppose an illegal cellular user has a cloned phone and dials that
long distance number. Instantly, the system identifies the signal
pattern for the calling phone. If it doesn't match the one on file, the
call is terminated.
Blocking a caller's initial access is the goal of the
transmitter fingerprinting process. This method of fraud control is
having remarkable results, according to Mr. Bill Taliaferro of Corsair
Communications, a Sunnyvale, California-based company that develops and
provides technology-intensive applications and solutions for the
wireless industry. Known by the trade name PhonePrint, this fraud
control system detects illegal phones by measuring in real time the
unique characteristics of each phone's radio signal. The new system can
determine if the call is from a legitimate caller. If not, it
automatically blocks the clone's access to the cellular network. The
company emphasizes that the PhonePrint system eliminates the need for
users to change phone numbers when fraud is detected, and increases
cellular network capacity by eliminating illegal traffic.
Don Winters, director of technology transfer at AirTouch
Communications, which has partnered with the PhonePrint folks said,
"This pre-call validation allows us to keep criminals off our network
which in turn reduces costs incurred by fraud and increases capacity for
our paying customers to use the AirTouch network." Operational
deployment of the system in Los Angeles is the first major sale of the
system by Corsair Communications.
The cellular fraud epidemic can be slowed down, with everyone's
help. Here's what you can do.
* Your subscriber agreement, which includes your electronic serial and
mobile telephone number, should be treated like any other sensitive
personal document. You wouldn't expose your credit card numbers and
agreements for the world to see, would you? Keep it in a safe place!
* Take your phone with you or store it in a locked area when leaving
your vehicle, especially in an isolated area.
* Report your stolen phone to your cellular phone carrier immediately.
* Remove your cellular antenna, lock the phone (or remove the handset)
before leaving your vehicle with parking attendants, repair shops, etc.
Maybe you should also consider buying that magnetic-mount antenna
instead of the on-glass you now have.
* Why have long distance or overseas calling on your plan if you don't
intend to use them? Ask you service provider to eliminate this long
distance service.
* Use reputable cellular service technicians to install and test your
phone.
Cellular fraud, as one company official said, "is not a victimless
crime." After all, those costs have to be passed along to someone.
*END*
--------------------------------------------------------------------------
@BEGIN_FILE_ID.DIZ /|___ ___ ____________
/ | | \/ \ _____/
/ | | |\/ __)
_/ ! | \/ | |Z!
\________|__ ||___|__ |
<===PRESENTS===\|=TODAY=\|=======>
New Info on Anti Fraud Tatics
to Abolish Cellular Phreaking.
[AI/FPF/Fingerprint/CTIA]
@END_FILE_ID.DIZ
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/ _/ /_/ /_/ / / /_/ /_/ /_/ / \ \_ / \
\ ________/_______/_______/_/____/_______/_______/______/____|\ /______/
\/ \_/-rS!
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--»> lATEST aMIEXPRESS vERSION 4.xX! <«--
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[-[[ tIME aND dATE oF tHE uPLOAD: ]]---[[ 14:47:47 ]]--[[ 07-02-95 ]]-]
- --(· FastAdd v1.2 By Nike/Craze^Del!ght -95 ·)-- -
.
.::: denmarks fiskest board! ·
.::: ______ :
.::: . / / ______:____
.::: .:::. _ ____/ /_ _\_ / main fisk -> enzo
::::: ·::. / / / /
:::. _/ / _/ / (· smaller fisks ·)
.::: \ \ _ / raj!^psg ÷ fury^psg ÷ snake&delboy^psg
.:::: ____\ \_____/ / devil&raven/psg^trsi ÷ mandrake^vty
..:::: \______\ __/ /:
·::· :::::::::::::::::\_____/ `----------------- -
· :::::::::::: __________________
:::::::::::: _ ___________ _\ /_ ______ _ __________
- -------. :::::::::::: / \ /______ / __ /
A4000 : :::::::::::: · / \ / \______/__ \______/
2880 ¦ :::::::::::: / / /\ / / \
1gig hd : :::::::::::: _________/________/\ /___________/______\
.----' :::::::::::: \______/g®m
`-- -- :::::::::::: ------- -------------------------------------------.
++45-7483-3886 (RNG) ++45-7483-3974 ++45-74833038 :
.-------- ---- ------------------------------------------------------------'
:ac!^dkhq · crx^dkhq · hf^dkhq · lsd^dkhq · mth^dkhq ·psg^dkhq · scx^scanhq
`--------------------------------------------------------------- -
_________________________________________ ·
( / t H E y A R D :
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