1. Prison Inmate Telephone Fraud in Brazil by clifford m jordan

2. Prison 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.

3. Objective behind the Frauds: Continuance of Gang Financing through: –Drug Trafficking –Arms Trafficking –Kidnapping / Ransoming –Other Miscellaneous Fraud Schemes Communication with Other Gang Leaders Prison Inmate Telephone Fraud in Brazil

4. 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 off b.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 street b.Cloning CDMA phones c.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 Prison Inmate Telephone Fraud in Brazil

5. How Prison Inmates gain access to phone networks: 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 Prison Inmate Telephone Fraud in Brazil

6. How Prison Inmates gain access to phone networks: 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 Inmate Telephone Fraud in Brazil

7. 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 Switch Prison Inmate Telephone Fraud in Brazil

8. 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 Hardware Prison Inmate Telephone Fraud in Brazil

9. Prison Walls Origin of Hardware Prison 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.

10. Prison Walls Schemes 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 Inmate Telephone Fraud in Brazil

11. Prison Walls Schemes Used Collect Calls via LD Providers B Prison Inmate Telephone Fraud in Brazil

12. Prison Walls Schemes Used 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 Prison Inmate Telephone Fraud in Brazil

13. Prison Walls Schemes Used Social Engineering / Call Forwarding B The CON (continued): Fraud Operator B then calls Local Telco and poses as victim and orders Call Forwarding for line C. Local Telco C Prison Inmate Telephone Fraud in Brazil

14. Prison Walls Schemes Used Social Engineering / Call Forwarding 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 Prison Inmate Telephone Fraud in Brazil

15. Prison Walls Schemes Used Social Engineering / Call Forwarding 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 Prison Inmate Telephone Fraud in Brazil

16. Prison Walls Schemes Used Social Engineering / Call Forwarding 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 Inmate Telephone Fraud in Brazil

17. Prison Walls Full 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 Inmate Telephone Fraud in Brazil

18. Prison B Full Operation Variation: Prison to Prison Communications Prison A Prison B Clandestine Switch Prison A Clandestine Switch Prison B Call Forward Victim Prison A Call Forward Victim collect call forwarded collect call forwarded Prison Inmate Telephone Fraud in Brazil

19. Prison D Full Operation Variation: Prison to Prison Communications Prison C Clandestine Switch Prison B Call Forward Victim Prison A Call Forward Victim Prison BPrison A Clandestine Switch Prison D Clandestine Switch Prison B Clandestine Switch Prison D Call Forward Victim Prison C Call Forward Victim Prison Inmate Telephone Fraud in Brazil

20. Full Operation Variation: Operation of Major Crimes Prison A Call Forward Victim Prison A Clandestine 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 Prison Inmate Telephone Fraud in Brazil

21. Full Operation Variation: Other Social Engineerings Prison A Clandestine 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 Prison Inmate Telephone Fraud in Brazil

22. 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” Prison Inmate Telephone Fraud in Brazil

23. 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 customer 2.Makes the request from the same phone that requires the service 4.Do not allow lines to call forward collect calls 5.Share information on such fraudsters with other Local and LD telcos 6.Block cell phone usage around prisons Prison Inmate Telephone Fraud in Brazil