May 2015

Paper: How to Defend Your Network Against the New SIM Server Threat

by Dan Baker

Dear Colleague:

SIM Box bypass is an old fraud problem that refuses to go away. In 2013 the CFCA estimated the telecom loss through bypass to be about $2 billion a year. Other reports claim losses of $3 billion to $5 billion per year.

In fact, operators in some countries affected by SIM box fraud will privately tell you that their international inbound traffic has decreased by as much as 50% in recent years! Plus these same operators have invested heavily in anti-fraud campaigns — and they actually do detect and block fairly large volumes of SIM boxes on a daily basis.

Well, the unmistakable conclusion is that the fraudsters are succeeding despite the anti-fraud efforts of the carriers. They are replacing the blocked SIM cards with fresh supplies of SIMs and continue their bypass.

So how are the SIM boxers evading the defenses and what steps can your organization take to cure the problem?

Answering those questions is the subject of a new TRI white paper I wrote based on detailed conversations with LATRO Services and other fraud management experts.

Click the image above to download the paper.

The paper explains how the SIM box threat is changing, how fraudsters are getting around current defenses, and what technologies and anti-fraud strategies are likely to be the most effective. Key issues discussed include:

Why current Anti-Fraud Solutions no longer stop SIM box fraud like they used to. The paper examines the three key methods used to block and frustrate the fraudsters — Test Call Generators, Fraud Management Systems, and SIM Card Distribution Control — and shows how new schemes and technological advances are enabling the fraudsters to get around these defenses.
The Impact of New SIM Server Technology. Fraudsters have stepped up their game: they are moving toward large-scale automation and the use of advanced technology on a global scale. The best example of this is the recent rise of the SIM Server and its associated banks of thousands of SIM cards. The SIM server is a major breakthrough for the fraudsters because it “virtualizes” the SIM card. The paper provides key details and shows why carriers who have their SIM box fraud problems under control today are now quite vulnerable to the new SIM Server threat.
The Rise of Network Protocol Analysis as an Anti-Fraud Tool. While the SIM Server has given fraudsters a powerful new stealth technology, all is not lost. Carriers have a new technological trick up their sleeves that can help them meet the SIM Server challenge. The paper explains all about this new technology, Network Protocol Analysis — how it recognizes the signature (or fingerprint) of a SIM Box, how it stops SIM boxes from generating revenue, and how deploying it in concert with other anti-fraud technology allows carriers to gain an edge over the fraudsters.

Researching this new SIM Server issue and the challenges it raises for traditional anti-fraud solutions was a real eye-opener for me. This 7-page paper will get you up-to-speed on a fraud problem that’s likely to get much worse till the new threat is fully understood and carriers improve their SIM box defenses.

Dan Baker
Research Director, TRI

P.S. One feature of the paper I think you’ll especially like is the explanatory diagram on page 5 entitled, The Battle to Stop International Bypass: Why the Fraudsters are Winning. The diagram summarizes the major anti-fraud techniques and fraudster counter-measures. Enjoy reading.

Dan Baker

Dan Baker is research director of Technology Research Institute (TRI) and editor of the Black Swan Telecom Journal.

Technology Research Institute (TRI) has been writing analyst reports and researching telecom software and systems markets since 1994.

For the last several years, TRI has been following developments in telecom Fraud Management, Revenue Assurance and Analytics solutions.

Most recently, TRI is exploring telecom opportunities in IoT, connectivity, AI/ML and edge computing (4G and 5G) in the Asia Pacific market. Contact Dan via

Black Swan Solution Guides & Papers

Expanding the Scope of Revenue Assurance Beyond Switch-to-Bill’s Vision — Araxxe — How Araxxe’s end-to-end revenue assurance complements switch-to-bill RA through telescope RA (external and partner data) and microscope RA (high-definition analysis of complex services like bundling and digital services).
Lanck Telecom FMS: Voice Fraud Management as a Network Service on Demand — Lanck Telecom — A Guide to a new and unique on-demand network service enabling fraud-risky international voice traffic to be monitored (and either alerted or blocked) as that traffic is routed through a wholesaler on its way to its final destinations.
SHAKEN / STIR Calling Number Verification & Fraud Alerting — iconectiv — SHAKEN/STIR is the telecom industry’s first step toward reviving trust in business telephony — and has recently launched in the U.S. market. This Solution Guide features commentary from technology leaders at iconetiv, a firm heavily involved in the development of SHAKEN.
Getting Accurate, Up-to-the-Minute Phone Number Porting History & Carrier-of-Record Data to Verify Identity & Mitigate Account Takeovers — iconectiv — Learn about a recently approved risk intelligence service to receive authoritative and real-time notices of numbers being ported and changes to the carrier-of-record for specific telephone numbers.
The Value of an Authoritative Database of Global Telephone Numbers — iconectiv — Learn about an authoritative database of allocated numbers and special number ranges in every country of the world. The expert explains how this database adds value to any FMS or fraud analyst team.
The IPRN Database and its Use in IRSF & Wangiri Fraud Control — Yates Fraud Consulting — The IPRN Database is a powerful new tool for helping control IRSF and Wangiri frauds. The pioneer of the category explains the value and use of the IPRN Database in this 14-page Black Swan Solution Guide.
A Real-Time Cloud Service to Protect the Enterprise PBX from IRSF Fraud — Oculeus — Learn how a new cloud-based solution developed by Oculeus, any enterprise can protect its PBX from IRSF fraud for as little as $5 a month.
How Regulators can Lead the Fight Against International Bypass Fraud — LATRO Services — As a regulator in a country infected by SIM box fraud, what can you do to improve the situation? A white paper explains the steps you can and should you take — at the national government level — to better protect your country’s tax revenue, quality of communications, and national infrastructure.
Telecom Identity Fraud 2020: A 36-Expert Analysis Report from TRI — TRI — TRI releases a new research report on telecom identity fraud and security. Black Swan readers can download a free Executive Summary of the Report.
The 2021 State of Communications-Related Fraud, Identity Theft & Consumer Protection in the USA — iconectiv — This 49-page free Report on communications-related fraud analyzes the FTC’s annual Sentinel consumer fraud statistics and provides a sweeping view of trends and problem areas. It also gives a cross-industry view of the practices and systems that enable fraud control, identity verification, and security in our “zero trust” digital world.

cSwans of a Feather

Registered Caller: A Centralized Registry Service to Collect, Vet and Send Enterprise STIR/SHAKEN and Rich-Call-Data to Consumers — interview with George Cray & Tom Sawanobori — A fraud control solution vendor and national wireless association have teamed up to drive adoption of a new, central cloud service for enterprise vetting and validation to leverage STIR/SHAKEN info for telecoms in the U.S. market.
Telecom Identity Fraud 2020: A 36-Expert Analyst Report on Subscription Fraud, Identity, KYC and Security — by Dan Baker — TRI releases a new research report on telecom identity fraud and security. Black Swan readers can download a free Executive Summary of the Report.
How an Energized Antifraud System with SLAs & Revenue Share is Powering Business Growth at Wholesaler iBASIS — interview with Malick Aissi — A classic case of risk management driving a major boost in a telecom’s business. Learn details on the commercial offer, antifraud ystem upgrades, Do It Yourself customer portal and reporting.
Webinar: Wangiri Warriors: Solutions & Strategies for Fighting Call Back Fraud — interview with Arnd Baranowski & John Haraburda & Igor Skutsenya & Colin Yates — A virtual webinar where four telecom fraud control experts give their perspective on Wangiri, the callback fraud. They discusses strategies and explain the solutions they offer to service providers.
Black Swan Guide: Lanck Telecom’s Voice FMS as an On-Demand Network Service — interview with Igor Skutsenya — A Guide to a new and unique on-demand network service enabling fraud-risky international voice traffic to be monitored (and either alerted or blocked) as that traffic is routed through a wholesaler on its way to its final destinations.
SAS Manages an Analytics Hub of Internal, 3rd Party, and AI Data for Telco-Specific, Holistic Fraud Solutions — interview with Sundeep Tengur — A leading cross-industry fraud analytics firm provides: a picture of telecom threats; perspective on subscription and onboarding fraud; parallels to fraud control in banking; and a rundown on its telco-specific approach to solving fraud problems in a holistic way.
Lanck Telecom Raises Fraud Alarm for International Brands, Enterprise Call Centers & Carriers: Beware of Wangiri 2.0 — interview with Sergey Okhrimenko — An international wholesaler gives details about a new traffic pumping fraud dubbed Wangiri 2.0. The fraud is hard to detect and targets businesses who do lots of international calling.
In the Era of Telecom Security Breaches, Mobileum Brings Signaling’s Deep Detection Capability to the Fraud Fight — interview with Miguel Carrero — Security-breach-driven fraud is on the increase as fraudsters gain deeper knowledge of telecom spheres such as roaming. Using five fraud cases, an expert shows how advanced signaling techniques are taking fraud control to a higher level.
Tethering Fraud: How Guavus Blocks the Pumping of Mobile Data Traffic and Tools Up to Deliver 5G Service Management — interview with Kent McIntosh & David Yates — How is analytics being applied to next generation data threats? Learn how tethering fraud occurs and is detected. Also discussed are: data volume reduction at the network edge, IoT fraud concerns, and automating the healing of high-quality 5G data services.
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Mobileum on the Move: Attracts Several Operators to its IRSF-Analyzing & Opex-Saving Counter-Fraud Machine — interview with Avnish Chauhan — What’s the value of machine learning in fraud control? CTO of a leading counter-fraud solution provider discusses ML, biometrics, and voice service analytics in the context of fraud, roaming and security.
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Mobileum Brings Analytic Scans & Minimally Invasive Treatment to Fraud Removal — interview with Jason Lane-Sellers — Advanced analytics-driven fraud detection has arriving. It enables targeted treatment of fraud cases, lessening customer experience mistakes such as blocking calls to legitimate businesses.
WeDo Offers Fraud Detection via a New Cloud Platform — interview with Thomas Steagall — A leading vendor introduces a cloud fraud control solution to serve the low cost, easy-to-deploy-learn-and-support requirements of many new operators, OTTs, and MVNOs.
A Herculean Task: Battling Fraud in an Increasingly Complex Comms World — interview with Michalis Mavis — A fraud control expert walks through some interesting cases, gives us his advice on FMS software, and offers four key lessons on the path to fraud management excellence.
The Early Warning Power of IPRN Test Call Detection in Blocking IRSF Fraud — interview with Colin Yates — Detecting the test calls made to International Premium Rate Numbers (IPRN) is helping telcos block IRSF fraud. An expert explains fraudster methods and the value of IPRN databases.
Calculating the Fraud Risks of the Digital Era — by Dror Eshet — Digital and mobile technology are an integral part of our daily lives. Not only is the technology evolving at a frantic rate, but a leading fraud expert explains how fraudsters now team with one another to commit their crimes and magnify the risks to users, companies, and global infrastructure.
SIM Box Bypass: The Damage to Developing Nations and the Actions Regulators Must Take — interview with Lex Wilkinson — Bypass fraud via the SIM box causes great revenue loss and poses many other dangers, especially in developing nations. An expert discusses the regulator issues and recommended actions in the fight to control bypass.
Nine Simple Strategies for Protecting an Operator or MVNO from Telecom Fraud — interview with Jim Bolzenius — An expert in telecom fraud management explains essential strategies for aiming a carrier’s or MVNO’s fraud prevention program in the right direction.
A Sweeping 239-Page Research Report on Fraud Management Solutions & Strategies — by Dan Baker — TRI has released a comprehensive analyst report on fraud management solutions. The study is based on interviews with three dozen leading FM consultants and solution experts. Download the free Executive Summary.
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Law Enforcement & Security in a World Where Industry and National Boundaries are Blurred — interview with Mark Johnson — Are we destined to be forever reactive over security, fraud, and risk issues? Or will we put wise standards, regulations, and frameworks in place that allow us to deliver technology that’s relatively secure and fraud-resistant?
Thinking Outside the Comms Box: A New, Cross Industry Fraud Check Service that Telecoms can Leverage — interview with Jim Rice — For decades, telecoms have done fraud and identity checks using comms industry data. This interview explains the power of using cross-industry data to pinpoint known fraudsters and suspicious individuals in finance, retail, and other industry data sets.
Integrated Test Call & CDR Analysis: A New Tool in the Fight Against SIM Box & OTT Bypass Fraud — interview with Kenneth Mouton — Why not combine the virtues of FMS CDR analysis and test call generators to create a single integrated tool for bypass fraud control? The benefits of that idea, a tutorial on test call systems in SIM box detection, and OTT bypass via mobile services like VIBER are all discussed in this interview.
White Paper: How to Defend Your Network Against the New SIM Server Threat — by Dan Baker — SIM box bypass is a very stubborn fraud problem: fraudsters are succeeding despite carriers‘ best efforts to defeat the fraud. This white paper explains the impact of SIM Servers as a powerful stealth weapon of the fraudsters. In turn, the paper discusses new technologies and strategies that can defeat the more sophisticated types of SIM box fraud emerging.
Intelligent Routing: The Case for Blocking IRSF Fraud at the SIP Session Border Controller — interview with Jim Dalton — A bad fraud event can be a huge loss, especially to OTT players who provide a VoIP service. In this interview, you’ll learn about an anti-fraud solution that works in concert with intelligent routing.
A Privacy-Enabled Data Exchange that Expands Analytics Uses in Fraud, Credit Risk and Beyond — interview with Michelle Wheeler — Analytics data today is managed in a privacy-negligent way. This interview discusses an ingenious privacy and analytics exchange that allows telecoms, banks, and money lenders to trade fraud, credit risk and other data with each other in complete confidence and control.
From Rules Design to Adaptive Learning Systems in Telecom Fraud Control — interview with Shankar Palaniandy — Adaptive and behaviorial learning systems are at the forefront of R&D in telecom fraud management systems. Here an expert developer explains their usefulness in use cases such as IRSF detection, subscription fraud, application fraud, and voice biometrics.
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Combating SIM Box Fraud: Network Protocol Analysis to the Revenue Rescue — interview with Lex Wilkinson — International call bypass is fraud perpetrated through SIM boxes equipped with dozens to hundreds of SIM cards that disguise international calls as local domestic phone calls. This article give a backgrounder on SIM box detection techniques and talks about a new, rapid-detection technology based on network protocol analysis.
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A Wholesaler’s Fraud Prevention Creed: If You Lose the Trust, You Lose the Traffic — interview with Robert Benlolo — Large wholesalers play a major role in keeping a lid on international telecom fraud. In this interview, a wholesale voice and fraud management expert explains the role of its vendor systems and multi-threaded internal processes in protecting customers from fraud losses and shady wholesale suppliers.
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What Makes Good Fraud Management Software? 9 Questions for Tal Eisner of cVidya — interview with Tal Eisner — How do you know if the fraud management software you own or are considering is a good one? That’s the starting point of a conversation Black Swan had with a product strategist of a leading FMS vendor. The article discusses everything from maturity and customer collaboration... to PBX hacking and enabling the FMS to actually enhance the relationship a telco has with its enterprise customers.
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“Fraud Is a Wind that Always Blows” and Other Wisdom From a 28-Year Old Software Firm — interview with Gary Beck — Here’s the amazing story of how Beck Computers was pulled out of a Tier 1 account only to be brought back in a few months later. The article explores software vendor service and support challenges, real-time computing requirements, advanced fraud management functions, and ways to educate management on the value an FMS investment.
Fraud & Credit Risk Software: Setting the Client Free to Innovate — interview with Luke Taylor — Not every operator wants the freedom to configure its own fraud management solution, but certain providers wouldn‘t live without such a “framework” approach . This article discusses: the reasons why operator choose this strategy as it covers many other fraud and credit software implementation issues.

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Bridge Alliance: Knocking Down Regional & Mobile Connectivity Barriers so Connected Car Markets Get Rolling in Asia — interview with Kwee Kchwee — The CEO of an Asian consortium of mobile operators explains how they help simplify and harmonize their members‘ operations in support of multi-national corporations. This integration is enabling two huge industries to come together in Asia: auto manufacturing and telco.
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PCCW Global: On Leveraging Global IoT Connectivity to Create Mission Critical Use Cases for Enterprises — interview with Craig Price — A leading wholesale executive explains the business challenges of the current global IoT scene as it spans many spheres: technical, political, marketing, and enterprise customer value creation.
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Paradigm Shift in OSS Software: Network Topology Views via Enterprise-Search — interview with Benedict Enweani — Enterprise-search is a wildly successful technology on the web, yet its influence has not yet rippled to the IT main stream. But now a large Middle Eastern operator has deployed a major service assurance application using enterprise-search. The interview discusses this multi-dimensional topology solution and compares it to traditional network inventory.
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Real-Time Provisioning of SIM Cards: A Boon to GSM Operators — interview with Simo Isomaki — Software-controlled SIM card configuration is revolutionizing the activation of GSM phones. The article explains how dynamic SIM management decouples the selection of numbers/services and delivers new opportunities to market during the customer acquisition and intial provisoining phase.
A Cynic Converted: IN/Prepaid Platforms Are Now Pretty Cool — interview with Grant Lenahan — Service delivery platforms born in the IN era are often painted as inflexible and expensive to maintain. Learn how modern SDPs with protocol mediation, high availability, and flexible Service Creation Environments are delivering value for operators such as Brazil’s Oi.
Achieving Revenue Maximization in the Telecom Contact Center — interview with Robert Lamb — Optimizing the contact center offers one of the greatest returns on investment for a CSP. The director of AT&T’s contact center services business explains how telecoms can strike an “artful balance” between contact center investment and cost savings. The discussion draws from AT&T’s consulting with world class customers like Ford, Dell, Discover Financial, DISH Network, and General Motors.
Mobile Broadband: The Customer Service Assurance Challenge — interview with Michele Campriani — iPhone and Android traffic is surging but operators struggle with network congestion and dropping ARPUs. The answer? Direct resources and service quality measures to ensure VIPs are indeed getting the quality they expect. Using real-life examples that cut to the chase of technical complexities, this article explains the chief causes of service quality degradation and describes efficient ways to deal with the problem.
Telco-in-a-Box: Are Telecoms Back in the B/OSS Business? — interview with Jim Dunlap — Most telecoms have long since folded their merchant B/OSS software/services businesses. But now Cycle30, a subsidiary of Alaskan operator GCI, is offering a order-to-cash managed service for other operators and utilities. The article discusses the company’s unique business model and contrasts it with billing service bureau and licensed software approaches.
Bricks, Mortar & Well-Trained Reps Make a Comeback in Customer Management — interview with Scott Kohlman — Greater industry competition, service complexity, and employee turnover have raised the bar in the customer support. Indeed, complex services are putting an emphasis on quality care interactions in the store, on the web, and through the call center. In this article you’ll learn about innovations in CRM, multi-tabbed agent portals, call center agent training, customer treatment philosophies, and the impact of self-service.
21st Century Order Management: The Cross-Channel Sales Conversation — by John Konczal — Selling a mobile service is generally not a one-and-done transaction. It often involves several interactions — across the web, call center, store, and even kiosks. This article explains the power of a “cross-channel hub” which sits above all sales channels, interacts with them all, and allows a CSP to keep the sales conversation moving forward seamlessly.
Building a B/OSS Business Through Common Sense Customer Service — by David West — Delivering customer service excellence doesn‘t require mastering some secret technique. The premise of this article is that plain dealing with customers and employees is all that’s needed for a winning formula. The argument is spelling out in a simple 4 step methodology along with some practical examples.

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