Most Common VOIP Wholesale Fraud Types |

Introduction

The telecommunications industry is increasingly concerned about VOIP Wholesale fraud. With over $50 billion in losses reported annually, understanding and detecting these fraud types is crucial to prevent financial damage.

1. PBX Hacking

Private Branch Exchange (PBX) is vulnerable to hacking. Hackers often gain control through password breaches, using IP-based sources to avoid detection. They employ call forwarding and dial-thru tactics to expensive destinations, often connecting this to call reselling fraud.

2. Call Reselling

Wholesalers are often lured into call reselling. They add destinations to price lists at lower costs. Hacked PBXs are used as switches to evade termination costs, with the hacked PBX owner being billed for the traffic.

3. IRSF (International Revenue Share Fraud)

IRSF focuses on high-revenue international destinations. It involves Premium Rate Services and revenue-sharing. Fraud mechanisms include service not provided as promised, call duration extension, and artificially inflated traffic. Massive traffic generation within a short time is common.

Mechanism	Description
Service Misrepresentation	Not delivering promised services
Call Duration Extension	Charging for longer call durations
Traffic Inflation	Artificially increasing traffic for higher revenue

4. Wangiri

Wangiri is a “missed call” campaign. CLI spoofing and spamming are common tactics. The fraud scenario involves mass calls to mobile subscribers with an immediate hang-up. The target subscriber unknowingly calls back an expensive number.

5. Call Hijacking

Call hijacking involves rerouting calls intentionally. Network A’s calls are routed through transit operator B to an announcement server. The transit operator enjoys high margins as charged calls don’t reach legitimate destinations. This often results in increased traffic due to customers calling again after reaching a recorded message.

Outcome	Description
Increased Traffic	Customers call again after reaching a recorded message
Higher Charges	Calls are billed without reaching their intended destinations

6. FAS (False Answer Supervision)

FAS is a fraudulent signal for call establishment. Calls are charged for longer durations than actual. Scenarios include calls not connected, call setup time charges, etc. It’s often combined with call hijacking.

7. Domestic Fraud

Domestic fraud is similar to IRSF. It involves artificially generated traffic towards premium rate number services. This is often connected to agreements with PRN (premium rate number) providers, leading to increased carrier revenue due to traffic stimulation.

8. Non-payment of invoices

Some companies use the service and do not pay, leading to financial losses for providers.

9. Billing increments

Companies use fraudulent billing software, showing more traffic on the generated invoices, which in turn causes disputes.

Author’s Bio

Progressive Telecom LLC is an expert in VoIP services and telecommunications. With vast experience in the field, they offer insights and solutions to tackle VOIP wholesale fraud effectively.

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