CELLULAR ONE® MANDATES USE OF FRAUD PROTECTION FEATURE FOR NEW CUSTOMERS; Offers Increased Protection From Cellular Fraud Without Sacrificing User Convenience

Business Wire, Jan 31, 1995

PARAMUS, N.J.--(BUSINESS WIRE)--January 31, 1995--Cellular One(R) of New York and New Jersey announced today that the company will require all new customers to use its convenient and effective Fraud Protection Feature as part of their cellular telephone service, beginning Wednesday, Feb. 1.

Cellular One is mandating the use of this security measure to broaden its battle against cellular fraud, increase customer satisfaction and minimize customer exposure risk to this crime.

The Fraud Protection Feature (FPF) uses a four-digit personal identification number or PIN code that enables customers to easily turn on the security feature and prevent cellular thieves from illegally accessing their cellular service.

While service is protected, incoming calls can still be received and outbound calls can be made to 911 emergency authorities and to 611 for Customer Care service. For all other outbound calls, customers simply enter their PIN codes to turn off the security feature and then place either a single or a series of telephone calls.

Cellular fraud is the act of obtaining cellular service by fraudulent means to avoid paying for the service. Cellular One views FPF as an effective deterrent to this crime, which is costing the national cellular telephone industry an estimated $500 million per year. Cellular One, which has offered FPF to all its customers free of charge since December 1993, is also mandating the use of FPF for any Cellular One customer whose cellular service is counterfeited after Feb. 1.

"Cellular fraud is a crime of inconvenience that has the potential to affect every cellular telephone user -- not just those individuals who have been victimized by cellular fraud," said John Ryan, Cellular One(R) director of Investigative Affairs. "By activating the Fraud Protection Feature, Cellular One customers can reduce their exposure risk to cellular fraud without sacrificing the `anytime, anywhere' advantages of cellular service."

For immediate protection when they complete their outgoing calls, customers should turn on FPF even if they are turning their telephone off. The security feature will automatically turn on approximately 20 minutes after their telephone is powered off. For added convenience, customers should program their FPF codes into their cellular telephone's speed-dial directories.

To deter cellular thieves outside the metropolitan area, Ryan explained that FPF is also recognized by other cellular service providers in nearly 40 cities in the United States and Canada. The cities include San Francisco, Miami and Toronto. (Please see attachment.)

Fighting Cellular Fraud

The use of the Fraud Protection Feature represents just one element in Cellular One's multi-tiered approach to combating cellular fraud.

"Cellular One's efforts combine preventive measures such as FPF with systems that monitor and detect possible fraudulent activities," explained Ryan. "We developed these programs to provide our customers with seamless protection that deters cellular counterfeiters."

In terms of detection, Ryan explained the company uses a fraud management system to develop usage profiles of customers. The system collects detail records about a customer's call. If upon comparison, the information does not readily fit the customer's usage profile, a Cellular One fraud analyst reviews the call or calls, and contacts the customer if fraud is suspected.

Cellular One's fraud fighting efforts include work with law enforcement agencies to educate them about cellular fraud and assist with investigations. The company also provides anti-fraud training to its employees and continually educates customers about the issue and the programs in place to combat cellular fraud.

In New York, Cellular One(R) offers cellular telephone service in the five boroughs of New York, Westchester, Rockland and Putnam counties and Suffolk and Nassau counties on Long Island. In New Jersey, its serves Bergen, Essex, Hudson, Morris, Passaic, Somerset and Union counties.

Cellular One's parent company, McCaw Cellular Communications Inc., is the nation's largest provider of cellular service, offering wireless voice and data communications. McCaw is a wholly owned subsidiary of AT&T Corporation. McCaw owns a 52 percent interest in LIN Broadcasting Corp., which is engaged in cellular telephone operations, television broadcasting and specialty publishing. -0-

      Cellular One(R) Fraud Protection Feature Coverage Area