Tuesday, December 6, 2022
Published 3 Years Ago on Monday, Dec 09 2019 By Fayza Bjayou
SIM Box Fraud has been recognized by the telecoms industry as the toughest fraud problem operators currently face. Operators spend around $51 million a year on bypass fraud management solutions, with operators frequently identifying and blocking large numbers of SIM Boxes, yet the problem seems to persist across the world.
SIM box fraud involves the illegal setting up of
international calls using a low-cost, prepaid, SIM card, which is part of a
larger fraudulent business known as GSM termination.
It is common knowledge that international call tariffs are
more expensive than calls from within the network. A SIM box fraud system
enables fraudsters to earn money based on the difference between local and
SIM Box fraud occurs when fraudsters team up with
international entities to route international calls through the internet using
VoIP and terminate those calls through a local phone to make it seem as though
the call made, was local.
Box operators are therefore able to bypass international
rates to fraudulently undercut the prices charged by the Mobile Network
Operators (MNO) and avoid surtax charged by the government.
This fraudulent activity contributes substantially to a loss
of revenue. SIM Box operators cause the decline of call and service quality,
which prevents operators from meeting service level agreements for mobile
There have been no accurate figures reported for the full extent
of SIM Box Fraud on taxes lost and the adverse effect on national infrastructure.
With the damage of infrastructure over time, everyone is impacted. If one
operator is susceptible to these attacks, other operators in the country are at
Some may argue that prevention cannot be sought from the operators themselves but rather from separate entities who focus on foiling such activity. Operators simply do not have enough expertise on fraud management to effectively implement a lasting strategy. Because of this, fraudsters at present, are succeeding despite operator anti-fraud efforts, which highlights the greater need for more national and international regulatory controls.
What SIM Box fraudsters are doing is shifting their traffic
to operators with the weakest anti-fraud detection system, which enables them
to fly directly under the radar.
In such circumstances, the best form of prevention is unity.
Operators sharing intelligence systems with each other, can improve and empower
their efforts to build barriers against those who are easily infiltrating the
Another beneficial initiative would be to reward
and penalize operators to ensure policy compliance. Setting high standards and
ensuring that operators maintain those standards would surely reduce the
numbers of global fraudulent activity.
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