prison inmate telephone fraud in brazil by clifford m jordan

Prison Inmate Telephone Prison Inmate Telephone Fraud in BrazilFraud in Brazil

by clifford m jordanby clifford m jordan

Prison Inmate Telephone Fraud in BrazilPrison Inmate Telephone Fraud in Brazil

We will discuss:

* Why do the prisoners need phones for.

* How phones are smuggled into the prison.

* The elaborate illegal networks that are setup in

order to make free phone calls.

* How to detect it and block it.

Objective behind the Frauds:

• Continuance of Gang Financing through:– Drug Trafficking– Arms Trafficking– Kidnapping / Ransoming– Other Miscellaneous Fraud Schemes

• Communication with Other Gang Leaders


How Prison Inmates gain access to phone networks:

1. Smuggling in of Cellular Phones:2. Brought into the prison compound in various methods:

a. Guards are paid offb. Smuggled inside of visitors

• Women claim to be menstruating and are thus allowed visiting rights without any physical searches.

3. Cell phones are obtained on the outside by gang members (often by girlfriends of the inmates) by various methods:

a. Stealing Cell phones on the streetb. Cloning CDMA phonesc. Stealing people’s wallets or purses through car hijacking or holdups.

Identifications are then stolen and cell phones are immediately purchased.d. Buying of identifications from street people



1. Most cell phones used by prison inmates are prepaid because in most cases identification is not validated for purchases of prepaid phones.

2. In addition to the use of cell phones, clandestine

switches are often setup near prison complexes. Why?a. Switches are usually managed by girlfriends of the inmates who

naturally live close by to facilitate cell phone smuggling.b. Allows for Radio patching if Cell phones signals are blocked



1. A Clandestine Switch is a pair of phone lines obtained and used illicitly that are setup to be conferenced together.

2. Why is this referred to as a Switch? Because it works like the old operator switches.


Prison Walls

Just one second…

Hey Darling, I wants to talk to Guido.

Hey Guido!?

Oh, Hi Mabel! Whatz up?

Tony wants to talk to you…

Sure, put him on the line…

Hey Guido, we needs to talk about the shipment of goods…

Those goods better arrive by Friday…or else!

Clandestine SwitchPrison Inmate Telephone Fraud in BrazilPrison Inmate Telephone Fraud in Brazil

Cell phones obtained through:• Stealing Cell phones on the street• Cloning CDMA phones• Stealing people’s wallets or purses through car

hijacking or holdups. Identifications are then stolen and cell phones are immediately purchased.

• Buying of identifications from street people

Prison Walls

Fixed Phones obtained from Local Phone Company via:Sub Fraud from Stolen Identifications

Origin of HardwarePrison Inmate Telephone Fraud in BrazilPrison Inmate Telephone Fraud in Brazil

Prison WallsOrigin of HardwarePrison Inmate Telephone Fraud in BrazilPrison Inmate Telephone Fraud in Brazil

Fixed Phones rarely make LOCAL calls and thus are often not blocked by the local company.

When Cell phones are blocked, they are disposed of and more are brought in.

Prison WallsSchemes Used

Fraud Behavior:Callers make COLLECT calls via LD provider 1 to phone line B at Clandestine Switch

Anti-Fraud Reaction :LD Provider 1 sees many collect calls to line B and blocks all LD calls billed to B

B

Fraud Reaction :Callers make COLLECT calls via LD Provider 2 to phone line B at Clandestine Switch

Collect Calls via LD Providers“CSP Surfing”


Prison WallsSchemes UsedCollect Calls via LD Providers

B



Social Engineering / Call Forwarding

B

The CON: Fraud Operator B calls Res Client C (victim) and poses as a Telco Operator. Victim is offered a chance to win some money by participating in a contest. But first the victim’s name, address, and identity information must be validated. Victim then gives all identity information to fraudster.

C




B

The CON (continued): Fraud Operator B then calls Local Telco and poses as victim and orders Call Forwarding for line C.

LocalTelco

C




B

The CON (continued):Fraud Operator B then calls victim again the give the final instructions on how to enter the contest.Victim is then told a sequence of “secret” numbers to dial on the phone after the conversation that will “automatically” enter victim in the contest.

C




B

The CON (continued): Victim then hangs up the phone and dials the “secret” numbers in order to enter the contest. Those numbers in reality setup the phone with call forwarding to one of the cell phones of the fraudsters in prison (D). Now all calls to C will be call forwarded to fraudster D in prison.

C

D




B

The Fraud Behavior:Victim will receive many collect calls via LD provider 1 which will all be forwarded to D. Anti-Fraud Reaction :LD provider 1 detecting the many collect calls will block all calls billed to C.Fraud Reaction :Callers will make COLLECT calls via LD Provider 2 to phone line C

C

D


Prison WallsFull Operation

B

C

D Fraudster makes collect call to Clandestine Switch B and tells Operator he wants to talk to fraudster D in prison. Operator then calls collect to victim C which is then call forwarded to fraudster D in prison. Operator then conferences the two calls together.


Prison B

Full OperationVariation: Prison to Prison Communications

Prison A

Prison BClandestine

Switch

Prison AClandestine

Switch

Prison BCall Forward

Victim

Prison ACall Forward

Victim

collect

collect

collect

call forwarded

collect

collect

collect

callforwarded


Prison D

Full OperationVariation: Prison to Prison Communications

Prison C

Prison CClandestine

Switch

Prison BCall Forward

Victim


Victim

Prison BPrison A

Prison AClandestine

Switch

Prison DClandestine

Switch

Prison BClandestine

Switch

Prison DCall Forward

Victim

Prison CCall Forward

Victim


Full OperationVariation: Operation of Major Crimes


VictimPrison A

Prison AClandestine

Switch

Gang Leaders in Prisons Manage their Gang Members on outside to continue with illicit activities such as:

Drug Trafficking

Arms Trafficking

Kidnapping / Ransoming

Money Laundering

Prostitution

Racketeering

Contract Killing

and much more…

Product Piracy


Full OperationVariation: Other Social Engineerings

Prison A

Prison AClandestine

Switch

Gang Leaders use clandestine switches to perform “Mass Market” Social Engineering Cons such as:

Personal Information Con

Death Threats

Bank Information Con

Etc….

Objectives: Steal Money Steal Identities


Detection

1. Look for residential lines receiving many collect calls

2. Look for residential lines with many call forwards

3. Look for res lines with combo of collect and call forwarded calls

4. Share this information across all LD and local Carriers to look for “CSP Surfing”


Prevention

1. Limit the number of lines a residential customer can install in a single location

2. Validate the customer – suspect fraud if lines installed for customer are distant from customer residence. Call existing lines to validate the customer.

3. Do not offer customer call forwarding services unless customer:1. Is proven to be a good paying customer2. Makes the request from the same phone that requires the

service4. Do not allow lines to call forward collect calls5. Share information on such fraudsters with other Local and LD

telcos6. Block cell phone usage around prisons


prison inmate telephone fraud in brazil by clifford m jordan

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