3 rd November 2016 Poca update Telecoms Revenue 2255 Trillion USD 2255000000000 38000000000 Fraud Converts free service into income L osses for mobile operators and Customers ID: 573163
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Slide1
Winter Meeting
3rd November, 2016
Poca updateSlide2
Telecoms Revenue$2.255 Trillion (USD) $2,255,000,000,000
$38,000,000,000
Slide3
Fraud Converts ‘free’ service into income:
L
osses for mobile operators and Customers
Income for Fraudsters
Artificial Inflation of Traffic (AIT)
Massive calling to content services on high-tariff international ranges
Fraudulent Service Acquisition
Subscription fraud
PBX hacking
Account takeover
Social Engineering
Wangiri
SMS SpamSlide4
CFCA 2015 SurveySlide5
Proceeds of Crime
Revenue Share
Network
Carrier 2
Carrier 1
Number
provider
Content
provider
Pays
£1.60
Pays
£1.35
Pays
£0.50
Pays
£1.15
Call costs
£2.00
Keeps
£0.40
Keeps
£0.25
Keeps
£0.65
Keeps
£0.20Slide6
2016 RAG summer conference:Risk & Assurance Group
6Slide7
AIT Process:
Revenue Share Fraud
Missing A no.
Repeat A no.
Sequential B no.
Same duration
Night hours
Consecutive calls
International
Origin
Stopped by Annexe EUK Operator
Dealer
Criminal receives proceedsTerrorist receives proceeds
DomesticOriginDealerSlide8
POCA Approach:
Revenue Share Fraud
Missing A no.
Repeat A no.
Sequential B no.
Same duration
Night hours
Consecutive calls
International
Origin
DomesticOriginProceeds seized under POCA
UK Operator
Beneficiaries arrestedProceeds seized under POCA
Beneficiaries arrestedSlide9
Poca powers(1) Criminal confiscation: powers to confiscate the proceeds of crime following a criminal conviction
(2) Civil recovery: a system for confiscating the proceeds of crime through the civil courts(3) Cash forfeiture: powers to seize and forfeit cash, through a civil process, where there are reasonable grounds to suspect that it is the proceeds of crime(4) Criminal taxation: allows the National Crime Agency to access revenue powers to tax income which it has reasonable grounds to suspect are the proceeds of crimeRisk & Assurance Group
9Slide10
Poca civil recoveryCivil recovery via the High Court enables the recovery of property obtained through unlawful conduct
Proceedings are against the property, not against a personCivil standard of proof applies – balance of probabilityIt isn’t necessary to show that the person in possession of the property was responsible for the unlawful conduct.Risk & Assurance Group
10Slide11
Communication barrierRisk & Assurance Group
11
HPMN traffic was being charged well below IOT and CDRs show a loss of 25k SDRs
We need a corroborating MG9 or there’s no section 2 committalSlide12
Risk & Assurance Group
12
Industry side prepares an agreed briefing paper which describes a) how the process should work and b) what the most common frauds look like
LEAs prepare a high level process doc which shows a) points to be proved and b) the data and evidence requiredSlide13
Risk & Assurance Group
13Slide14
How much Fraud is reported?a) the number of crimes reported under NFIB7 Telecoms Industry Fraud (Misuse of Contracts)
b) the value of crimes reported under NFIB7 Telecoms Industry Fraud (Misuse of Contracts)c) the number of crimes reported under NFIB52D Computer Hacking – PBX/Dial Throughd) the value of crimes reported under NFIB52D Computer Hacking – PBX/Dial ThroughAnswers due in the next few daysRisk & Assurance Group
14Slide15
How much fraud is Prosecuted?a) the number of prosecutions brought under the Communications Act 2003 section 125
Since CPS charging advice considers that prosecutions may also be brought under the Fraud Act 2006 section 11, or the Computer Misuse Act 1990 section 1, please provide the same data for prosecutions brought under these Acts and sections where they relate to the provision of telecommunication services.Risk & Assurance Group
15
Prosecutions under:
2013
2014
2015
Communications Act 2003 s125
3
10
2Computer Misuse Act 1990 s1 141
105148Fraud Act 2006 s11265247158Slide16
How much is Prosecuted?a) the number of prosecutions brought under the Communications Act 2003 section 125 (Fraud Act 2006 s11, or CMA 1990 s1)
– see tableb) the sum of the related dishonest benefit - £14,179.77c) the value of Proceeds of Crime Act (POCA) confiscation orders made in these cases
- nil
d) the value of any related POCA recoveries
- nil
Risk & Assurance Group
16