LONDON - Wednesday, October 5th 2011 [ME NewsWire]
- Raids across globe lead to arrests and prosecutions
- Monthly savings for operators estimated to be millions of dollars
- Millions in illegal hardware seized
GITEX 2011
(BUSINESS WIRE)-- Raids on illegal fraudsters have revealed the size and volume of SIM box fraud being perpetrated against mobile network operators. There have been recent publicised raids in Mauritius, Haiti, Senegal, Jamaica, Afghanistan, Nepal, Pakistan, Ghana and El Salvador. These raids, often prompted by information provided by fraud specialist consultancy Revector, have led to arrests, prosecutions and the seizure of millions of dollars worth of illegal equipment.
‘SIM box’ fraud takes place when individuals or organisations buy thousands of SIM cards offering free or low cost calls to mobile numbers. The SIM cards are used to channel national or international calls away from mobile network operators and deliver them as local calls, costing operators’ millions in revenue loss.
Andy Gent, CEO of Revector commented: “From our knowledge of working in more than 60 countries, we estimated $150 million per year was being lost by mobile network operators to illegal fraudsters. With the recent spate of raids, we believe that was a conservative estimate – the real cost could peak at more than quarter of a billion dollars in annual lost revenues.”
One raid in Haiti halted an illegal racket costing a mobile network operator more than $750,000 per month in lost revenues. Another in Ghana seized equipment worth more than $200,000 and with the capability to hold more than 300 SIM cards concurrently.
“The fraudsters involved can set up this practice for a little as a few thousand dollars but some are investing hundreds of thousands in equipment,” continued Gent. “This ‘investment’ can be paid back in days by deploying it for illegal termination of international calls.”
Illegal SIM cards can generate 10 cents per minute for more than 20 days per month, costing an operator up to $3000 per SIM card, per month in lost revenue. The equipment seized in Ghana could generate almost one million dollars per month in fraudulent transactions. Revector has knowledge of networks where 300,000 illegal SIM cards are operating concurrently.
Revector recently launched a new service that enables mobile operators to geo-locate fraudulent SIM cards, alert the authorities to seize equipment and make arrests. Recent raids demonstrate a strengthening of resolve by mobile operators.
“These raids are good news for operators but they demonstrate the importance of remaining vigilant and proactive to reduce fraud,” commented Gent. “With our new service, operators don’t just remove the illegal cards from circulation; they can make arrests and deter others.”
Revector offers mobile network operators, regulators and governments a quick and cost-effective way to identify SIM box fraud, removing millions of dollars’ worth of fraudulent activity from their networks.
Revector will be demonstrating its new services for mobile network operators at Gitex-Gulfcomms, Dubai, 9th - 14th October.
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