Presented By:-Akhil Singh Rawat

Telecommunication fraud is the theft of telecommunication service (telephones, cell phones, computers etc.) or the use of telecommunication service to commit other forms of fraud. Victims include consumers, businesses and communication service providers

WIRELESS

WIRELINE

IPTV

BROADBAND

SIM cloning consists of duplicating the GSM motor (each GSM mobile phone contains a GSM motor) identification and placing calls/SMS/data services using the account of cloned GSM motor. This is also called IMSI STUFFING. In this IMSI No. is Cloned in Another SIM & Used for Fraud Purpose.Therefore,It has Same IMSI No’s with Different IMEI’s.

It is Tracked Majorly By Two Techniques:-

Velocity Rule

Call Collisions

SIM box fraud is a set-up in which some fraudsters connived with cohorts abroad to route international calls through a system called voice over internet protocol (VOIP) and terminate those calls through local phone numbers in Foreign Countries to make it appear as if the call is a local call. Telecom operators and the state consequently lose revenue on those calls.

Track customers that use multiple Subscriber Identification Modules (SIMs or smart cards) on the same

equipment (IMEI), and alarm when the number of different SIMs exceeds an operator-defined number.

The symmetrical analysis is done on IMSI, monitoring the number of different IMEI used (cloning). The

module can create alarms also on the number of ‘switches’ (e.g. only two different IMEI, but switched

10 times in a day).

A fraud convict will steal your SIM card and divert or forward your cell phone number to an international switchboard, which can route international calls to any global destination from your SIM. A victim will notice that he or she hasn’t received calls for some time but high volumes of international calls have been made on his or her account.

Classic toll fraud, sometimes referred to as dial‐through fraud or time theft, occurs when a hacker

breaches a vulnerable voice system and then sells the number/codes to as many people as possible. For

example, some companies enable services like Direct Inward Services Access (DISA), where if you know a

code/password, you can call in and get dial tone to call out. DISA is a useful service for travelers, who

can call in and use the company’s long distance facilities, rather than using their cell phone, a hotel

phone, or calling card. When hackers obtain these codes, they can exploit them in toll fraud

The misuse of information that is specific to an individual in order to convince others that the imposter is the individual, effectively passing one self off as someone else. It is done in Possibly Three ways:

Same Identity theft.

Identity Manipulation.

Fictions Identity.

The simplest version of premium rate service fraud is to artificially inflate the amount of traffic to a legitimate PRS service, most commonly 900 numbers, either manually or by the use of auto-dialer equipment. The main characteristic that fraudsters look for is any service where the operator has to share part of the revenue with the PRS provider. This type of service is particularly susceptible to what is known as artificial inflation of traffic—where a person makes repeated calls to a PRS number to trigger a payment without any intent to pay the subscriber charges.

Subscription fraud involves setting up a false identity to gain access to network services with no intention to pay for services, either by creating a fictitious identity or by fraudulently using the identity of another party to pay for those services. A single fraudster can wreak havoc by setting up multiple accounts and thereby racking up multiple bills, or by causing an unsuspecting subscriber to be billed for the services used. Both of these scenarios routinely result in large losses and increases to uncollected revenues.

Abusing roaming facilities to make free calls is also a costly problem. Roaming cloning fraud—where subscriber identity numbers are used in another market—has been the most widespread type of this kind of fraud. Roaming fraud also can increase the incidence of PRS fraud, as described above.

For example, roaming records for an operator in Northern Europe were routinely received from the visited network 24 hours after the calls took place. Since the fraud department did not work over the weekend, handsets purchased on a Thursday were quickly shipped to another country where the fraudsters were able to get three days of fraudulent use from the phones before any problem was detected

Internal fraud has many faces, from applying services directly onto the switch without amending the billing system and suspending the generation of usage information, to the reactivation of used prepaid voucher numbers. Other examples include removing records from billing systems, creating fictitious accounts/customers/employees, removing call detail records (CDRs) from the billing cycle, or just manipulating the accounting and credit processes. All these factors can mean lost or incorrect billing records, more non-payments and general customer dissatisfaction.

Many operators employ resellers to help extend their reach. Unfortunately, unsavory resellers can sometimes directly exploit these agreements. For example, some dealers may simply falsify sales records to claim grossly inflated sales commissions. Other examples include reporting sold SIMs as lost, reselling expired vouchers, and relaxing subscription requirements to increase the volume of sales and thereby obtain fraudulent commissions. These types of fraud can leave a trail of unpaid bills and unaccounted-for usage.

Any type of fraud scheme that uses one or more components of the internet - such as chat rooms, e-mail, message boards, or web sites to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme.

Area Code Phone Scams

Number Switching Scams

Credit Card Scams

Do Not Call

Slamming & Cramming

This long distance phone scam causes consumers to inadvertently incur high charges on their phone bills. Consumers usually receive a message requesting them to call a phone number with an 809, 284 or 876 area code concerning an important matter. These will often included placing a call in order to collect a prize, find out information about a sick relative, or receive information about an important legal matter. The caller assumes the number is a typical three-digit U.S. area code; however, the caller is actually connected to a phone number outside the United States, and charged international call rates. Unfortunately, consumers don't find out that they have been charged the higher call rates until they receive their bill

We all feel safe calling "toll free" 1-800 or 888 numbers, while knowing stay away from 1-900 numbers. However, there exists an illegal scam that merges the two. An advertisement will claim an incredible offer, either a service, job, or anything to get someone interested enough to call a toll free number to find out more. After placing the 1-800 call, an automated greeting asks that they press #9 to verify their number. By pressing #9 (in some reported cases, #90), that call has just been transferred to a 900 number and through a long series of questions, the caller is kept on the line for as long as possible. This can be avoided by instituting a 900 number block through your service provider

A phone call is received from someone or something (computerized voice) claiming to be a credit card representative. They will ask for sensitive account information, under the guise that it is merely part of a routine confirmation to keep the card active. This type of calling scheme is aimed at trustworthy people who are likely to give his/her sensitive information with no questions, unfortunately the elderly.

When you dial *72 followed by a telephone number, it activates the call forwarding feature, causing all your incoming calls to be forwarded to another number. If scammed successfully, whether calls have been forwarded to a landline, a cell phone or a pay phone, an accomplice is able to accept all collect and third-party calls, while telling your own legitimate callers that they've reached the wrong number. You get billed for all calls made because your number is the one listed as the number from which they originated. Some of these could be international calls, pushing the costs into the hundreds or thousands of dollars. If you know that this has been done to your number, you can shut off the transfer of your telephone calls by pushing *73.

"Slamming" is the illegal practice of changing a person's communications provider without permission, and it can affect customer's local or long distance service. "Cramming" occurs when unauthorized charges appear on your bill. These thefts of services are serious violations and should always be reported.

These All Comes Under Wire line Frauds.

The best way to prevent subscription fraud is to perform thorough customer verification checks, such as credit references and subscriber services usage analysis that profiles an individual’s calling patterns regardless of the phone they may be using. These steps help establish a true profile of behavior patterns, so that individuals can be uniquely identified regardless of the credentials they supply. Subscription fraud, which occurs at the time of applying for a service, can be thwarted by confirming that none of the applicant’s details are present in any known fraudster list. Further measures include obtaining an initial deposit and limiting usage with controls such as credit limits.

To prevent this type of fraud, monitor usage patterns to identify unusual, often high-usage call patterns to PRS numbers. For example, if there is a sudden increase in traffic for a particular PRS number, especially if the traffic originates from a small number of calling line identities, it’s worth the time and effort to look a bit closer. Perform credit and other reference checks on the owners of PRS numbers when they submit an application. In addition, risk of this class of fraud can be limited by profiling the traffic received by PRS numbers and raising alerts when usage trends change significantly.

To prevent this type of fraud, monitor the usage patterns of both inbound and outbound roamers—for example, develop regular high-usage reports that are based on call attempts as well as call volume. Roaming fraud often exploits the increased delay between service usage in the visited network and the subsequent delivery of billing information to the home network. Risk of this exposure can be limited by capturing and analyzing the near real-time delivery of this information between networks

Today’s revenue assurance tools are likely to detect most cases of internal fraud that create an imbalance between usage patterns and billed revenues. Periodic audits of all network equipment configurations and creating specific internal fraud reporting mechanisms that include stringent background checks of employees will quickly reduce internal fraud.

To detect and prevent this growing form of fraud, analyze network traffic to identify multiple calls made at the same time (collision checks) and from the same number. Also, conduct velocity checks to easily detect calls made from geographically remote places, usually within an unfeasibly short period of time, to identify specific handsets that have been cloned. This fraud is preventable by incorporating stronger encryption methodologies on handsets. Enforcing PIN protection can be another way to prevent unauthorized access to the SIM.

How can it be detected and prevented? Monitor subscriber behavior for connections sold by dealers. For instance, run regular reports on the number of sold SIMS and/or handsets that have not been activated. Also, most operators can quickly analyze dealer performance based on simple margin calculations to take into account revenue generated versus costs incurred, rather than solely by the number of sales achieved. It’s also a good idea to perform basic credit and other reference checks on the owners of dealerships when they submit an application. In addition, don’t forget to regularly analyze the dealer incentive and commission agreements to identify loopholes that should be closed in order to prevent unscrupulous dealers from exploiting them for their own benefit.

Operators can never afford to let their defenses down when it comes to telecom fraud. Many threats, both internal and external, need to be considered, and mechanisms must be put in place to eliminate or at least minimize those risks.

Fraudsters, like operators, can and will take advantage of the new range of next-generation services that are coming on to the market. With the introduction of new services comes an ever-increasing array of methods to defraud operators. Pay particular attention to services with higher content value, such as music downloads and video clips, which both increase the value of individual services but also make fraudulent activity more attractive. Technology solutions are at hand to combat fraud, but they are only effective when operators are fully aware of all the potential threats, and when they integrate the necessary due diligence and related processes into their everyday business operations.

THANK YOU

PRESENTED BY:-

AKHIL SINGH RAWAT