Johannesburg, 31 Aug 2001
Telkom reports that its crackdown on network fraud is reaping rewards, with hundreds of suspects arrested and a significant dent made in the usual fraud losses suffered.
In the latest development, two syndicates involving Nigerians and South Africans have been smashed in Greater Johannesburg.
Telkom media relations manager Ed Tillett says the latest arrests were the result of a renewed Telkom/SAPS offensive against network fraud syndicates.
He says, "A major portion of the network fraud that takes place is 'clip-on fraud`, in which fraudsters clip on to a legitimate customer line and sell calls to overseas destinations at reduced rates."
This type of fraud alone cost Telkom R274 million in the 2000/2001 financial year. Tillett comments, "Our proactive steps to combat this type of fraud have resulted in literally hundreds of arrests and saved a significant amount of money."
In one sting operation last week, a Telkom employee was arrested for allegedly "swinging" legal customer telephone lines on the Vosloorus exchange. Investigators traced the lines pole by pole from the streetbox to a shack in the squatter camp. Five Nigerians suspected in involvement in the clip-on fraud were also arrested.
In the other operation, a Telkom investigation team arrested a security guard and two Nigerians at the Johannesburg offices of Deloitte & Touche. The Nigerians allegedly paid the guard R100 to let them into the distribution point of the building.
The arrests are the latest in a series of crackdowns against network fraud in the past year. The first major blow to fraudsters was Telkom`s introduction of a new fraud management system in mid-2000. The system monitors customers` lines using a combination of rules and artificial intelligence to detect irregular calling behaviour. Tillett says the system has proved highly effective.
"In some cases, we have been able to detect network fraud on a customer`s line before the customer has become aware of it," he says.
Tillett says Telkom is making its renewed crackdown on network fraud a matter of the highest priority.
"We believe our proactive approach to combating the problem has prevented this type of fraud from making a significant dent on our bottom line. However, we`re putting more heat on the fraudsters than ever before, because this type of crime represents one of the most lucrative areas for criminals to take advantage of."