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- Date: Wed, 13 Mar 91 21:16 CDT
- From: Arun Baheti <SABAHE@macalstr.edu>
- Subject: Secret Service Foils Cellular Phone Fraud
-
-
- [Moderator's Note: Mr. Baheti passed along this article which I am
- presenting as part of the two part series on cellular fraud. The last
- issue of the Digest (#200) presented a story by Joe Abernathy. PAT]
-
- {New York Newsday}, March 7, 1991, By Joshua Quittner
-
- The US Secret Service said one of its agents cracked the code
- of counterfeit computer chips to block a kind of cellular telephone
- fraud responsible for an estimated $100 million a year in unbillable
- long-distance calls.
-
- During the past two months, the service has quietly
- distributed a free software "patch" that blocks unauthorized
- long-distance calls at cellular telephone switches. The patch is
- being heralded in New York City, where more phone service is stolen
- than anywhere else in the country. The first day the patch was put
- into use in Los Angeles, more than 5,000 illegal cellular calls were
- blocked, a Secret Service spokesman said yesterday.
-
- [...] The counterfeit chip used by phone cheats exploits a
- weakness in the cellular telephone system that allows a caller's first
- call to be completed before the billing status is verified ... A
- legitimate mobile phone has a silicon chip that generates an
- identification number. When a call is made, that number is relayed to
- the carrier, along with the caller's phone number, and the two numbers
- are compared to establish billing.
-
- However "depending on where you're roaming and how busy the
- cellular network across the country is, you can make a phone call
- before that procedure is completed." [Norman Black, Cellular Telephone
- Industry Association] To exploit that weakness, underground engineers
- designed a counterfeit chip that generates a different, phoney
- identification number on each call, tricking [the cellular telephone
- exchange] into thinking each call is the first.
-
- One illegally rigged phone, confiscated by police in New York
- City last year, was turned over to the Secret Service, which
- investigates, among other things, telecommunications fraud. Like a
- hacker -- a phone computer cheat -- the agent broke into the chip,
- read the microcode, decoded the algorithm at its core, then wrote a
- program that would help carriers detect its peculiar pattern.
-
- Dave Boll, who heads the Secret Service's Fraud Division in
- Washington, said that cellular telephones equipped with the
- counterfeit chips "sell for as much as $5,000 each". And he estimated
- that such phones are used to make $100 million in unbillable calls
- each year.
-
- [The article goes on, to talk about the call-stealing problem
- being the worst in NYC and how the unbillable calls tied up the
- network for the paying customers].
-