Professional Documents
Culture Documents
www.purgefraud.com
I. Introduction
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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
IV. 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.
Provided are the most prevalent types of
network frauds. All of these have been
discussed in this paper and all have equal
negative influence on operators, regulators,
and customers.
Interconnect Bypass Fraud
International Revenue Sharing Fraud
(IRSF)
False Answer Fraud
A Number Pass-through /
Interconnect Agreement Compliance
Testing
A. Bypass Fraud
Bypass Fraud has plagued the performance
of network providers to a substantial degree
and is the most damaging and costly type of
fraud. This fraud type is also known as
Grey Routing or SIM Box Operator Fraud.
Bypass fraud is the exploitation of immobile
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VoIP Gateways
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Calling Number
(USA)
1-602-218-5011
Called Number
+ 971 12 543 7865
Cellular
Network
Legal Route
Dialed International
Gateway
IP
Cloud/SS7
IP
Calling Number
(Local Number)
+971 89 4135559
IP
International
Gateway MSC
0092-1-602-2185
1-602-218-5011
Telecom pirates
Network
Fig. 2: CLI Stuffing
Emulating Traffic Usage Patterns
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Calling Number
(USA)
1-602-218-5011
Cellular
Network
Legal Route
Dialed International
Gateway
IP
Cloud/SS7
Called Number
+ 971 12 543 7865
No received
CLI
International
Gateway MSC
IP
IP
1-602-218-5011
No Caller ID
B. International
Fraud (IRSF)
Revenue
Sharing
Pay-per-Call
Fraudulent
Telecom pirates acquire pirated GSM SIM chips to create a false valid customer
With the help of pirated IDs, a telecom pirate from country 'A' illegally obtains subscription in
country 'B'
Telecom pirates acquire these SIM cards in country B for roaming services.
With the aid of these subscriptions, calls are made to PRNs in country 'C'.
Home Public Line Mobile Network (PLMN) charges customer for making PRNs calls which are actually
generated by the fraud committers.
In country 'C', fixed line operator charges visited PLMN as connecting cost.
In country 'C', IRS provider company generates revenue from premium rate numbers.
Revenues are then collected by the fraud committers and the networks are left with unpaid invoices
and settlement of roaming charges.
Recorded Message
Existence of FAS
Types
False Answer Supervision is comprised of
two types of frauds. Both occur when the
carrier in question initiates the answer
message before the called party has
answered.
Early Answer
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D.
A
Number
Pass-through
/Interconnect Agreement Compliance
Testing
In this type of fraud, the fraudulent service
providers illegally make use of routing and
special discounted termination rates as per
an agreement with local carrier operators.
The telecom pirate, through SIM boxes or
switches, terminates traffic onto mobile
operators using their locally installed SIMs
so that it appears to be a local call. They can
change the A number (which identifies
the originator of the event) for each call into
a fake local number and then terminate onto
the national trunks of mobile operators
instead of international trunks.
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Fraud
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#402, Alfa Building,
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#104, 1st Floor, Green Trust Tower,
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295 North Rural Rd., Suite 263,
Chandler, AZ 85226, USA
Tel: +1-480-292-7150
Fax: +1-480-452-1998
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