Instruction manual

What is in a loss?
Issue 9 May 2003
2-3
Call sell operations are dependent on calling card numbers or other means to
fraudulently use a customer premises equipment-based system. The major calling
card vendors monitor calling card usage and shut down in a matter of minutes
after detecting the fraud. However, call sell operators know that the traffic on most
customer premises equipment-based systems is not monitored.
That is why a calling card on the street sells for $30.00 and a customer premises
equipment-based system code (called a Montevello) sells for up to $3,000.00.
Drug dealers
Drug dealers want phone lines that are difficult to trace so they can conduct their
illicit narcotic dealings. For this reason, drug dealers are more likely to route their
calls through two or more communications systems (PBXs) or voice mail systems
before a call is completed. This is called “looping.” Law enforcement officers
believe that drug dealers and other criminals make up a sizeable chunk of toll
fraud.
What is in a loss?
Cost of the phone bill
There are no real numbers showing exactly how much money companies have
lost due to toll fraud. Since some companies are not willing to disclose this
information, it is difficult to know who has been hit and at what cost. Both small
and large companies have been victims of what is one of the nation’s most
expensive corporate crimes.
Lost revenue
The cost of operational impact may be more severe than the toll charges.
Employees cannot get outbound lines, and customers cannot call in. Both
scenarios result in potential loss of business.
Expenses
Additional expenses may be incurred, such as changing well-known, advertised
numbers, service interruptions, and loss of customer confidence.