1. Winter Meeting 3rd November, 2016
Poca update
Winter Meeting
3rd November, 2016

2. $38,000,000,000 Telecoms Revenue $2.255 Trillion (USD)
$2,255,000,000,000
$38,000,000,000

3. Fraud Converts ‘free’ service into income:
Fraudulent Service Acquisition
Social Engineering
Subscription fraud
PBX hacking
Account takeover
Wangiri
SMS Spam
Artificial Inflation of Traffic (AIT)
Massive calling to content services on high-tariff international ranges
1996 Scotland Yard PBX compromised - £620k
Losses for mobile operators and Customers
Income for Fraudsters

4. CFCA 2015 Survey

5. Revenue Share Proceeds of Crime Number provider Content provider
Call costs £2.00
Pays £1.60
Pays £1.35
Pays £1.15
Pays £0.50
Number provider
Content provider
Network
Carrier 1
Carrier 2
Keeps £0.40
Keeps £0.25
Keeps £0.20
Keeps £0.65

6. 2016 RAG summer conference:
Risk & Assurance Group

7. AIT Process: Stopped by Annexe E Domestic Origin Dealer
Revenue Share Fraud
Missing A no.
Repeat A no.
Sequential B no.
Same duration
Night hours
Consecutive calls
Criminal receives proceeds
Terrorist receives proceeds
International
Origin
UK Operator
Dealer

8. POCA Approach: Proceeds seized under POCA Domestic Origin
Beneficiaries arrested
Revenue Share Fraud
Missing A no.
Repeat A no.
Sequential B no.
Same duration
Night hours
Consecutive calls
Proceeds seized under POCA
Beneficiaries arrested
International
Origin
UK Operator

9. 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 crime
Risk & Assurance Group

10. Poca civil recovery
Civil recovery via the High Court enables the recovery of property obtained through unlawful conduct
Proceedings are against the property, not against a person
Civil standard of proof applies – balance of probability
It isn’t necessary to show that the person in possession of the property was responsible for the unlawful conduct.
Risk & Assurance Group

11. Communication barrier
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 committal
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 required
Risk & Assurance Group

13. Risk & Assurance Group

14. 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 Through
d) the value of crimes reported under NFIB52D Computer Hacking – PBX/Dial Through
Answers due in the next few days
Risk & Assurance Group

15. 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.
Prosecutions under:
2013
2014
2015
Communications Act 2003 s125 3 10 2
Computer Misuse Act 1990 s1
141
105
148
Fraud Act 2006 s11
265
247
158
Risk & Assurance Group

16. 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 table
b) the sum of the related dishonest benefit - £14,179.77
c) 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