Toll fraud: multimillion-dollar telecomm problem

Communications News, Feb, 1994 by Ruth Michalecki

Recently carriers started offering programs designed to protect end users from losses due to toll fraud. They are likely insurance policies. In fact, insurance comapnies are offering policies insuring against losses due to crimes involving computers or other electronic components committed by people outside the insured company.

Although I ralize the end user or owner of the PBX/vocie mail system must take every precaution possible to avoid potential toll fraud losses, consider the testimony from the ICA member at the En Banc hearing: "Recently, various suppliers (principally long-distance carriers) have begun to address limitations on customers' liability for toll fraud. However, the utility of these prorams has not been demonstrated. Moreover, it appears these new programs may be nothing more than costly add-ons to existing telephone charges. Toll fraud should not become a rationale for higher profits for carriers."

Unfortunately, I do not have any sure-fire instant cure for the toll fraud/hacker problem. However, we can implement reasonable security measures as discussed and reduce our exposure. We can all encourage our vendors and carriers to work together to achieve collectively the security and protection against hackers that each has end users should be to make certain our carrier understands that although we approve of competition in an open marketplace, there is simply no room for competition between the long-distance carriers when it involves solving this nationwide problem.