Telecom fraud can have a significant impact on businesses of all sizes. Fraudulent activities such as unauthorised international calls and network breaches can result in significant financial losses and damage to a company’s reputation.

At GoldStar we supply SIP Trunks – an ultra-secure way to fight back against the potential ruin of telecoms fraud. Read on to discover what is meant by telecoms fraud and why SIP trunking solutions are the best defence against it.

What is telecom fraud?

Telecom fraud is a type of crime that involves taking advantage of weaknesses or loopholes in a telecoms system to unlawfully gain access to information, services, or funds. The effects of telecom fraud can be severe and long-lasting, so it is important for businesses to understand the risks and take steps to protect against it.

How does telecoms fraud occur?

There are lots of ways that telecom fraud can occur, but these are some of the more common types of fraud:

Dial-through

Some hackers attempt to gain access to PBX systems via an outside port, permitting them to make calls from the system and to direct them to costly numbers. This may be simply to gain access to free calls (free for them, but very expensive for you). It could also be to route calls to premium-rate numbers the fraudsters own. Either way it can be disastrous, leading to astronomic phone bills and potential financial ruin.

To avoid this on a PBX system, we’d advise limiting the capacity to dial certain numbers, such as international or premium rate contacts and particular numbers. We suggest implementing secure PINs and passwords to the phone system, such as those related to voicemail, extension lines, and other vulnerable features that could be accessed remotely. As we’ll explain later, a lot of this is much easier with SIP.

Voicemail dial-through

Voicemail dial-through fraud is a similar type of scam. It occurs when a hacker dials into a voicemail system or mailbox and enters an authentication code. This gives them access to an outside line they can use to place calls. Additionally, they can hack into the voicemail system’s call-forwarding feature and make calls. This can lead to pricey phone bills and can also damage your reputation. To prevent these scams, make sure you are regularly updating your voicemail passwords.

Poor password & access management

Passwords that are easily guessable or not regularly updated can make it easier for hackers to gain access to sensitive information or systems. Additionally, if access controls are not properly implemented, individuals can easily access your information and workspaces.

Together, this can lead to the manipulation of call routing, unauthorised use of services and other fraudulent activities, ultimately resulting in financial losses. Overall, it is important to have strong password policies and access controls in place to protect against potential fraud.

Why are SIP Trunks safer for protecting against telecom fraud?

To protect yourself against telecom fraud, you need the best line of defence. Phone systems that use SIP trunks are much safer, due to the extra control that you have over your phone system and the features that provide layers of protection.

Authentication

Authentication is one of the key features of SIP trunks that can protect you from fraud. A SIP trunk requires authentication before it can be used, ensuring that only authorised individuals or systems have access to it. This can prevent fraudsters from using your SIP trunk for unauthorised activities such as making international calls or accessing your network.

Encryption

Another way that SIP trunks can protect you from telecom fraud is through encryption. SIP trunks use encryption to secure all communication over the trunk, making it much more difficult for fraudsters to intercept and use your information. This added layer of security can help to prevent fraudsters from accessing your sensitive data and using it for illegal activities.

Monitoring features

SIP trunks also offer call monitoring features, which allow you to detect suspicious or fraudulent activity. For example, if you notice a sudden increase in international calls or calls originating from a specific location, you can take action to investigate the situation and prevent further fraud. This can help to minimise the financial losses associated with telecom fraud.

Fraud Detection Systems

In addition, SIP Trunks can be integrated with Fraud Detection Systems (FDS), which are software solutions that are specifically designed to detect and prevent fraud. This can help you to identify suspicious activity on your network in real-time, and take action to prevent fraud before it occurs.

GoldStar SIP Trunks

SIP trunks aren’t just secure, they’re also a cost-effective and flexible solution. We can provide you with SIP trunks that can give you full control over your phone system. Head to our page on {SIP Trunks} to learn more, or head to our contact page to speak to a staff member.