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- One of every 10 Americans now has a cellular telephone. And the number
- is growing fast: Every day, 28,000 more are hooked up.
- First of two parts
-
- That's 28,000 more people vulnerable to high- tech highway robbery.
- The Cellular Telecommunications Industry Association (CTIA) reports a
- total of $482 million in fraud for 1994, or about 3.7% of total industry
- revenues, up from $365 million in 1993.
- The industry is adopting new technology in its effort to stay one step
- ahead of cellular thieves. You can help, by adopting your own fraud
- prevention techniques.
- First, it helps to understand how cellular phones work. With today's
- technology, small geographic areas or ''cells'' each have a tower with a
- transmitter and receiver. As you drive from one cell to another, your call is
- handed over to the next tower and the channel you were on can then be used by
- someone else.
- There are three types of cellular phones. Mobile phones are installed in
- automobiles and operate off of the car battery. Transportable phones plug
- into the cigarette battery in your car or can be taken with you. And small
- hand-held portables - the smallest weigh only about four ounces - can fit in
- your briefcase or purse and travel wherever you go.
- Every cellular phone has two identification numbers. The manufacturer
- installs an electronic serial number, referred to as the ESN, and the carrier
- assigns a mobile identification number, or the MIN, similar to the telephone
- number on your home phone.
- The ESN is supposed to be fixed and unchangeable. The MIN can change,
- since the phone itself could change hands or a customer could move to another
- city.
- When an account is activated, the two numbers are paired and stored in
- the cellular carrier's computer switch. But the numbers are vulnerable.
- The first massive wave of cellular fraud involved ''tumbling,'' or using
- a random series of electronic serial numbers so that calls appeared to be
- made by new customers or by customers outside their local calling area. The
- industry effectively put a stop to tumbling by moving to pre- call
- verification. Now calls do not go through unless both numbers match.
- Today's big problem is ''cloning,'' in which thieves use software to
- reprogram stolen numbers into a cellular phone so that the phone, and the
- caller, appear legitimate.
- Numbers are easily stolen. Since signals are blocked in underpasses and
- most tunnels, and then must be re-sent, criminals often stand on an overpass
- or just beyond a tunnel exit to pick up cellular numbers with high-tech
- scanning devices. Another popular location, according to Michael Houghton of
- CTIA, is outside airport terminals, where arriving passengers frequently turn
- on their cellular phones.
- This type of fraud used to be discovered only when a customer complained
- about a bill loaded with calls to unfamiliar numbers. Today carriers are
- trying to stop cloning before it starts.
- Some carriers are using personal identification numbers, although users
- often find it a nuisance to enter another set of digits.
- On another front, less visible to customers, more than a dozen vendors
- are developing monitoring systems to be used by cellular carriers. Cellular
- Technical Services of Seattle, for example, is marketing software that, in
- the words of Cellular's president Bob Dahut, ''puts up a wall between the
- thieves and the carrier's cellular system.''
-
- The system, called Blackbird, uses radio fingerprinting plus other
- distinctive characteristics to identify each telephone. When the software is
- in use, the carrier's system can shut down a cloned phone as soon as the
- caller presses the ''send'' button.
- As the cellular industry moves to digital phones, which will code
- conversations into a stream of data bits instead of directly transmitting
- voices, new technological forms of authentication will be employed and
- numbers will be harder to steal.
- Most of the anti-fraud war, as Houghton puts it, ''is being waged behind
- the scenes by the carriers.'' But customers can help by alerting carriers to
- anything unusual. CTIA lists the following protective measures you can take
- as a cellular customer:
-
- Lock the phone or, if it's removable, take it with you when you leave your
- car, even if it's in an attended garage or with a mechanic.
-
- Be careful with your paperwork, which contains your electronic serial
- numbers. Don't leave documents in your glove compartment.
-
- If you are in an area where the signal must be re-sent, either coming out of
- a tunnel or leaving an airport, wait a few minutes before turning on your
- phone. The delay, says Houghton, lets you get away from the area where
- thieves might be scanning.
-
- Watch out for unusual activity on your monthly cellular phone bill, and
- report suspicious calls to your carrier. (Some carriers are now monitoring
- calling patterns and may detect unusual calls before you do.)
-
- If you don't plan to use your cellular phone to make long-distance calls in
- general, or international calls in particular, ask your carrier to shut down
- this service. ''Call-selling'' operations frequently use counterfeit cellular
- phones to provide international calling service to customers throughout North
- America.
-
- Don't assume frequent hang-ups or wrong numbers are the result of simple
- error on a caller's part. They should be reported to your carrier because
- they may indicate that someone else is using your mobile number.
-
- If you become aware of illegal wireless phone activity, you can report it to
- CTIA's Fraud Task Force via the Internet. The E-mail address is:
- cell-fraud@tmn.com. Tipsters who wish to remain anonymous can type:
- an205326@anon.penet.fi.
- Tuesday's News For You will discuss other types of phone fraud,
- including ''slamming,'' the unauthorized switching of long-distance services.
-
-
- ////////////////////////////////////////////////////////////
- Copyright (c) 1995 Investors Business Daily, All rights reserved.
- Investor's Business Daily - Investor's Corner (04/24/95)
- Arm Yourself Against The Cellular Bandits
- By Grace W. Weinstein
-
-
- Transmitted: 95-04-21 22:25:08 EDT (aaaa4opv)
-
-