Phone fraud, or more generally communications fraud, is the use of telecommunications products or services with the intention of illegally acquiring money from, or failing to pay, a telecommunication company or its customers. Many operators have increased measures to minimize fraud and reduce their losses. Communications operators tend to keep their actual loss figures and plans for corrective measures confidential. According to a 2011 survey by CFCA, an industry group created to reduce fraud against carriers, the five top fraud loss categories reported by operators were:
$4.96 billion – compromised PBX/voicemail systems $4.32 billion – subscription/identity theft $3.84 billion – International Revenue Share Fraud $2.88 billion – by-pass fraud $2.40 billion – cash fraud
Types of frauds
Fraud against users by phone companies Cramming is the addition of charges to a subscriber's telephone bill for services which were neither ordered nor desired by the client, or for fees for calls or services that were not properly disclosed to the client. These charges are often assessed by dishonest third-party suppliers of data and communication service that phone companies are required, by law, to allow the third-party to place on the bill. Slamming is any fraudulent, unauthorized change to the default long-distance/local carrier or DSL Internet service selection for a subscriber's line, most often made by dishonest vendors desiring to steal business from competing service providers. False Answer Supervision is a misconfiguration of telephone company equipment, by negligence or design, which causes billing to start as soon as the distant telephone begins ringing, even if a call is busy or there is no answer. The cost is typically subtle but recurring as subscribers repeatedly pay some small amount for calls which were never completed.
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