Jordan “SIM box” fraud

What is A SIM box

(also called a SIM bank) is device used as part of a VoIP gateway installation. It contains a number of SIM cards, which are linked to the gateway but housed and stored separately from it. A SIM box can have SIM cards of different mobile operators installed, permitting it to operate with several GSM gateways located in different places.

Nowadays there are so many ways to make money. But quite another thing, how to do it quickly and without big financial investments. SIM boxing fraud is just one of the ways to earn quickly. This is part of the largest business in the world of telecommunications, called GSM termination.

In competitive mobile markets Operators and MVNOs have lowered their retail prices for calling mobile numbers as an incentive to bring consumers to their networks. Operators and MVNOs sometimes offer promotions or subscriptions allowing free calls to mobile numbers on the same network and sometimes also to competing mobile networks.

Due to the difference between the interconnect rates and the retail price for on-network calls, fraudsters deploy SIM boxes to avoid paying the official call termination fee of an Operator or MVNO. This type of fraud is usually called Interconnect Bypass Fraud or SIM Box fraud.

There are two unavoidable reasons for the surge and persistence of this type of fraud. The first is the use of pre-paid SIM cards. Most commonly used by fraudsters, their ownership and address are much harder to trace compared to the easily traceable post-paid SIMs. The problem is particularly serious in countries where the incoming international traffic rates are high and controls are lax in terms of availability of SIMs and law enforcement.

The second issue is the subscriber churn rate between Operators in the market. The telecommunications industry operates in a low customer loyalty environment. Fraudsters usually take advantage of cheap packages including bundled offers, which earn lower per-minute revenue to the operator than the interconnect rate they can earn from the international carriers. Due to this highly competitive market and the low customer loyalty phenomenon, the cost of all-inclusive bundles is driven down. And disposing of bundle offers and cheap packages is not an option.

Latest news Jordan Times said 

Mobile company loses ‘millions’ in call fraud

AMMAN – A local mobile operator has lost JD 5 million as a result of “SIM box” fraud, the Public Security Department (PSD) announced on Saturday.

Several Jordanians were arrested last week and a search is under way for additional suspects who are believed to have been involved in the fraudulent usage of mobile SIM cards, a PSD source told The Jordan Times Saturday.

SIM box fraud occurs when individuals or organisations purchase SIM cards that offer free or low cost calls with the intent of using them for international calls.

Using various devices, the SIM cards are then used to channel national or international calls away from mobile network operators and register them as local calls on their networks, costing operators significant losses in international phone call revenues, according to Revector, a UK-based anti-fraud company.

The PSD source said one of the company’s agents sold around 18,000 low-cost SIM cards to an accomplice who then installed the cards on devices to make and sell international calls.

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