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