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    Telecom Fraud

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    Hailu Tsega
    This document discusses telecom fraud, specifically bypass fraud which involves using SIM boxes or other means to bypass international call termination charges. It defines telecom fraud and bypass fraud, describes the hardware used like SIM boxes and VoIP gateways, and discusses methods for detecting fraud like test call generation and analyzing call detail records. Regulators are encouraged to take steps to control SIM box fraud to benefit consumers through improved quality and safety, and to benefit operators through protecting revenue and maintaining their brand.

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    © All Rights Reserved
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    Telecom Fraud

    Uploaded by

    Hailu Tsega
    192 views30 pages
    This document discusses telecom fraud, specifically bypass fraud which involves using SIM boxes or other means to bypass international call termination charges. It defines telecom fraud and bypass fraud, describes the hardware used like SIM boxes and VoIP gateways, and discusses methods for detecting fraud like test call generation and analyzing call detail records. Regulators are encouraged to take steps to control SIM box fraud to benefit consumers through improved quality and safety, and to benefit operators through protecting revenue and maintaining their brand.

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    This document discusses telecom fraud, specifically bypass fraud which involves using SIM boxes or other means to bypass international call termination charges. It defines telecom fraud and bypass fraud, describes the hardware used like SIM boxes and VoIP gateways, and discusses methods for detecting fraud like test call generation and analyzing call detail records. Regulators are encouraged to take steps to control SIM box fraud to benefit consumers through improved quality and safety, and to benefit operators through protecting revenue and maintaining their brand.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    192 views30 pages

    Telecom Fraud

    Uploaded by

    Hailu Tsega
    This document discusses telecom fraud, specifically bypass fraud which involves using SIM boxes or other means to bypass international call termination charges. It defines telecom fraud and bypass fraud, describes the hardware used like SIM boxes and VoIP gateways, and discusses methods for detecting fraud like test call generation and analyzing call detail records. Regulators are encouraged to take steps to control SIM box fraud to benefit consumers through improved quality and safety, and to benefit operators through protecting revenue and maintaining their brand.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 30
    At a glance
    Powered by AI
    The key takeaways are that telecom fraud poses threats to network revenue and national security, and involves illegal use of network resources without payment. Various types of fraud like bypass fraud and SIM box fraud are discussed.

    Telecom fraud most often refers to the illegal use of network operator resources without paying the service provider. It poses risks to network revenue and remains difficult to predict how and where new fraud attacks will occur.

    The main types of telecom network fraud discussed are bypass fraud, international revenue sharing fraud, false answer fraud, and A-number pass through/interconnect agreement compliance fraud.

    Telecom Fraud

    HAILU TSEGA
    APRIL 18, 2017
    Agenda
    Introduction
    Ways Telecom pirates
    What is Telecom Fraud
    Attempt to Avoid Detection
    Factors Leading to Telecom Fraud Methods Used to Detect
    Types of Telecom Network Fraud Fraud
    Who Benefits from Fraud
    What is a Bypass Fraud? Detection and Elimination?
    Existence of Bypass Fraud Six Steps Regulators Should
    Take to Control SIM Box Fraud
    Bypass Fraud Network Conclusion
    Architecture
    Hardware Used to Facilitate
    Bypass Fraud
    Introduction
    Telecom Fraud Offence Proclamation No. 761/2012
    WHEREAS, considering that telecom fraud is increasing
    and wide-spreading from time to time thereby
    encumbering the telecom industry to play an essential
    role in the implementation of peace, democratization and
    development programs of the country;
    WHEREAS, recognizing that telecom fraud is a serious
    threat to the national security beyond economic losses;
    WHEREAS, it has became imperative to legislate
    adequate legal provisions since the laws presently in
    force in the country are not sufficient to prevent and
    control telecom fraud;
    What is Telecom Fraud?
    Telecom fraud most often refers to the illegal use
    of network operator resources without paying the
    service provider
    It is an unceasing risk to network operators
    revenue and it remains difficult to predict exactly
    how, when, or where new fraud settings will
    attempt to attack services.
    It has created severe international problems for
    GSM and PSTN service providers and its annual
    impact has been observed to be billions of US
    dollars
    Factors Leading to Telecom
    Fraud
    Failure to understand the complexity of new technologies
    Dissatisfaction of employees due to a lack of experience with
    new technology
    Weaknesses in operation systems
    Irresponsible business models
    Money laundering
    Political and ideological factors
    Ineffective audit systems; a lack of follow up relating to
    compliance reports presents opportunities for telecom pirates
    Free financial Gain
    Types of Telecom Network Fraud
    Telecommunication fraud encompasses a variety of illegal activities.
    There are types of frauds, which adversely affect the carrier providers,
    not only financially but also in terms of extensive voice bandwidth and
    network resources.
    These may include roaming, premium service (phishing), and
    subscription frauds,
    The most prevalent types of network frauds :
    Bypass Fraud,
    International Revenue Sharing Fraud (IRSF)
    False Answer Fraud
    What is a Bypass Fraud?
    Bypass Fraud is used to describe the use of various least cost
    call termination techniques like SIM Boxes, Leakey (hacked)
    PBXs etc. to bypass the legal call interconnection and
    diverting international incoming calls to on or of network
    GSM/CDMA/Fixed calls through the use of VoIP or Satellite
    gateway, thus evading revenue for international call
    termination which operators and government regulators are
    entitled to
    Existence of Bypass Fraud
    Bypass fraud occurs when international termination charges
    become larger than the local mobile call charges.
    It is also popular in the countries where international
    gateways are monopolized by government operators.
    As a result, calls are produced at the user end with either a
    Calling Line Identity (CLI) manipulation number or with no
    CLI.
    Mostly, SIM Box operators use pre-paid SIMs to perform
    these illegitimate acts because the ownership and address
    of a pre-paid SIM is difficult to know.
    Bypass Fraud Evolution

    These days bypass fraud perpetrators have evolved to a certain extent


    that they are constantly changing their strategies to prevent detection.
    Some of their tactics are:-
    automatically changing the IMEIs of each channel in the SIMBOX
    equipment
    constantly changing operation locations (one location in the morning then
    another in the evening)
    operating in a moving Vehicle to avoid single Cell detection
    operating in a certain time window especially after office hours and night
    time
    Types of Bypass Fraud
    On-Net Bypass Fraud: On-Net Bypass Fraud is
    a type of bypass fraud in which the fraud
    committers use their own network connections
    to terminate the bypassed calls.
    Off-Net Bypass Fraud is a type of bypass
    fraud in which the fraud committers utilize the
    connections of competitors or any other means
    for termination
    Bypass Fraud Network
    Architecture
    Hardware Used to Facilitate
    Bypass
    Fraud
    Telecom pirates use various methodologies to commit
    bypass fraud.
    They utilize:
    a) SIM boxes,
    b) VoIP Gateways, and
    c) Session Internet Protocol devices to conduct
    bypass fraud
    respectively.
    SIM Box
    A SIM box is a device that holds a large number of
    SIM cards, which are linked to a gateway but stored
    separately from it.
    Therefore, SIM boxes are used as part of a VoIP
    gateway installation.
    A SIM box comprises SIM cards of distinctive
    network operators, thereby allowing it to function
    with several GSM gateways situated at distant
    locations.
    The function of the SIM box is to make and
    A Typical Sim Box Operator

    Infrastructure needed
    An internet connection
    -1Mb allows for +- 60 concurrent
    calls
    -DSL
    -VSAT (satellite)
    -Datacenter
    Router to connect to internet
    GSM Gateway to convert calls into
    mobile calls
    SIM cards

    Typical companies
    Small 2 person operations
    Carriers sometimes also deploy SIM Boxes
    Some companies use PBX also for
    terminating traffic
    VoIP Gateways
    VoIP Gateways are telecommunication devices
    through which calls from fixed or mobile
    telephone networks are routed directly over
    VoIP to the targeted GSM network.
    A modern GSM VoIP gateway installation can
    support hundreds of mobile SIM cards,
    functional SIM rotation, pre-paid recharging
    and off-site SIM card storing
    Session Internet Protocol Devices
    Session Internet Protocol devices are used to
    enable VoIP.
    They are employed to connect a cellular network
    directly to an Internet Telephony Service Provider
    (ITSP).
    This permits VoIP to function as well as other real-
    time media such as voice, video, and web
    conference without the requirement of any IP-
    PSTN Gateway or Digital gateway.
    Ways Telecom pirates Attempt to
    Avoid Detection
    Detection avoiding schemes may become
    troublesome for telecom pirates as they
    often demand large investments.
    There are a number of ways that telecom
    pirates use to intercept phone calls and
    texts. Some of these are explained below
    Bit Stuffing of False CLI
    Telecom pirates use different methodologies to
    manipulate the caller ID.
    Within telecommunications, bit stuffing is the
    insertion of non-information bits.
    Therefore, if a number is dialed showing the
    country code, the telecom pirate can manipulate
    that number by adding or deleting digits from it.
    As a consequence, the called party cannot
    recognize the actual number.
    CLI Stuffing
    Deletion of CLI
    CLI Deletion is another type of telecom
    fraud in which telecom pirates remove the
    CLI of the incoming call.
    In this way, the telephone number of the
    originating party will not be shown on the
    Caller ID Box.
    Accordingly, the immediate affected parties
    are: the operators, end users, and
    regulators.
    CLI Detection
    Methods Used to Detect Fraud
    Operators and regulators have devised several
    fraud detection schemes for generated
    revenue assurance

    a) TCG Test Call Generation


    b) Fraud Management System (FMS) with CDRs
    to create user-based profiling CDR Analysis
    and Analytics
    TCG Test Call Generation
    Test phone numbers are set up within the local market where the
    bypass fraud is occurring.
    Then test calls are generated from many different countries via various
    interconnect voice routes around the world including VOIP services,
    Calling Cards, wireless and fixed line services.
    This establishes from where the grey routes are originating and the
    paths they use to reach SIM boxes in the affected country.
    Test Call Generation is all about probability.
    The more routes you test and the more test calls you make, the higher
    the chance of finding SIM boxes.
    Fraud Management Systems
    (FMS) and CDR Analysis
    In SIM box detection, the FMS uses Call Data
    Records (CDRs) to create usage based profiles that
    distinguish the SIMs used in SIM boxes versus those
    used in legitimate subscriber handsets.
    FMS and similar CDR analysis platforms have also
    been effective in detecting SIM boxes, but in recent
    years, fraudsters have found clever ways to evade
    usage profile detection.
    Who Benefits from Fraud
    Detection and Elimination?
    A. Consumers
    Quality: Effective detection and elimination
    of fraud ensures improved quality of service to
    consumers.
    Safety: consumers will experience legal calls
    with no interference of eavesdroppers, denial of
    service (DoS) attackers, caller ID theft, or SIM
    cloning through authorized GSM gateways
    during short and long distance call services .
    Operators
    Revenue Generation: By underpinning the
    detection and elimination techniques, revenue
    can be recovered effectively
    Stop Losing Revenues
    Branding and Image Maintenance: the
    quicker the fraud is detected, the more likely the
    desired services can be provided to the consumer.
    Governments (Regulators and Ministries)

    Safety Support: Implementing fraud detection


    and elimination techniques better enable
    stakeholders to incur the required investments in
    network financial service
    Revenue Managements: A well-structured
    detection and elimination system will allow
    regulators to manage revenue effectively without
    compromise in regards to customer protection.
    Six Steps Regulators Should Take
    to Control SIM Box Fraud
    1. Write Laws that Make Bypass Fraud a Costly Crime
    to Commit.
    2. Gain National Visibility over SIM Box Fraud Activity
    3. Coordinate the Use of Vendor SIM Box FM Systems
    & Services
    4. Audit the FM Performance of Mobile Operators
    5. Reward & Penalize Operators to Ensure Policy
    Compliance
    Conclusion
    The volume and versatility of new network
    technologies have created many
    opportunities for telecom pirates
    Telecom operators must stay one step
    ahead.
    There is an immense need to boost research
    awareness, and devise prudent fraud
    management systems to detect such frauds,
    which impose irreplaceable harm to the
    Thank you!!

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