David Morrow 2016 David Morrow 1 2016 David

David Morrow © 2016 David Morrow 1

© 2016 David Morrow

Telecoms Revenue $2. 255 Trillion (USD) $2, 255, 000, 000 © 2016 David Morrow

$38, 000, 000 Equivalent to GDP of • Jordan • Ghana © 2016 David Morrow

Fraudulent Service Acquisition Subscription fraud PBX hacking Account takeover Social Engineering Wangiri SMS Spam Artificial Inflation of Traffic (AIT) Massive calling to content services on high-tariff international ranges Losses for mobile operators and Customers Income for Fraudsters © 2016 David Morrow

© 2016 David Morrow

© 2016 David Morrow

End Users © 2016 David Morrow Aggregator Termination & Content

VAT rate 20% VAT € 39 m Missing Traders Issued share capital £ 2 If VAT = € 39 m + € 298 m =€ 337 m VAT € 298 m then net amount = € 337 m /20 x 100 = € 1, 685, 000 © 2016 David Morrow

Tuvalu population 10, 000 • 900 phone lines • GDP $38 m • It would take 45 years to pay for this traffic • The ‘content’ was porn • © 2016 David Morrow

https: //www. youtube. com/watch? v=M 7 t. Pfss. Up. CI

$70 m © David Morrow 2016

Callphonex $500 k © David Morrow 2016

• • • © 2016 David Morrow

https: //www. buzzfeed. com/tomwarren/ghost-companies-payinglyca-millions? utm_term=. ju 55 E 2 xxa#. tk 8 l. ABjjd © 2016 David Morrow

UK Context

CFCA 2015 Survey

Analysis of frauds reported to GSMA, CFCA & TUFF 6000 5000 4891 4000 3000 2022 2000 1016 1000 1008 831 558 527 446 427 377 Haiti Somalia Bosnia Herzgovina Lithuania Maldives 0 Gambia © 2016 David Morrow Cuba Latvia Guinea UK

UK Case Study 671 Assume average loss £ 15 k x 671 = £ 10, 000 146 11 Mobile Special 2 1 • 76% of B-numbers are sequential • 81% of B-numbers in Mobile range – 070 numbers • Of 671 numbers only 22 belong to mainstream Mobile Operators …

© 2016 David Morrow

Stopped by Annexe E Domestic Origin Revenue Share Fraud Missing A no. Repeat A no. Sequential B no. Same duration Night hours Consecutive calls International Origin © 2016 David Morrow Dealer Criminal receives Terrorist proceeds UK Operator Dealer

Proceeds of Crime Call costs £ 2. 00 Network Keeps £ 0. 40 © 2016 David Morrow Pays £ 1. 15 Pays £ 1. 35 Pays £ 1. 60 Carrier 1 Keeps £ 0. 25 Carrier 2 Keeps £ 0. 20 Pays £ 0. 50 Number provider Keeps £ 0. 65 Content provider

Domestic Origin Proceeds seized under POCA Beneficiaries arrested Revenue Share Fraud Missing A no. Repeat A no. Sequential B no. Same duration Night hours Consecutive calls International Origin © 2016 David Morrow Proceeds seized under POCA UK Operator Beneficiaries arrested

© 2016 David Morrow

© 2016 David Morrow

© 2016 David Morrow