NCJ Number
188732
Journal
Security Journal Volume: 14 Issue: 1 Dated: 2001 Pages: 7-22
Date Published
2001
Length
16 pages
Annotation
This paper examines the nature and control of cell phone fraud in the United States as a means of developing prevention initiatives for the United Kingdom.
Abstract
During the 1990's, criminals in the United States discovered ways of altering cellular phones to obtain free service. In "cloning" frauds, criminals using scanners were able to capture the identifying numbers broadcast by legitimate phones and to program these into illegitimate "clones." These could then be used to obtain free access to the wireless network. In "tumbling" frauds, telephones were altered so that they randomly transmitted illegally obtained identifying numbers. This allowed the phone to gain access to free cellular service, particularly when used outside the area where the numbers had been issued. By 1995 these frauds were costing the cellular telephone industry approximately $800 million per year. They also created "upstream" crime costs in terms of thefts of phones for cloning and "down stream" costs by facilitating drug dealing and other organized crimes. These frauds were virtually eliminated by the end of the 1990's through technological countermeasures adopted by the industry. There was little sign of displacement to other forms of cell phone fraud, and the preventive measures have apparently been cost-effective. The American experience with cell phone fraud and prevention has informed the United Kingdom's "Foresight" initiative, which envisages partnerships between the government and industry to anticipate and remove opportunities for crime created by new technology. 5 figures and 33 notes