BackSim Box fraud: How scammers use this tech to dupe common people. Explained
A SIM box fraud diverts international calls to a cellular device through the internet
PremiumSIM box fraud is among the most demanding challenges telecom operations face globally. The Fraud Loss Survey Report 2021 has pegged losses from SIM box fraud and the broader interconnect bypass fraud at $3.11 billion, or 7.8% of global telecom fraud losses. Sim Box fraud is reported from many parts of the country .
In 2021,the Anti-Terror Cell of the Bengaluru police probing the operation of illegal telephone exchange along with the Military Intelligence unearthed 109 SIM box devices comprising 3,000 SIM cards.
The Bengaluru police had earlier said that its anti- terror cell coordinated with Military Intelligence and unearthed six illegal telephone exchanges where 30 SIM boxes with 960 SIM cards were used.
How the fraud is done?
A SIM box fraud diverts international calls to a cellular device through the internet. This device, called as a SIM box, routes the connections back into the network as local calls, using hundreds of low-cost or even unpaid SIM cards, which are often obtained with forged identities.
M box frauds and interconnect bypass frauds have severe implications on businesses other than the apparent revenue loss.
Financial and revenue loss: Telecom operators face the flak of interconnect bypass frauds as they often go undetected leading to financial losses. Moreover, these scams escape government taxes and surcharges, depriving governments of revenues to fund infrastructure and welfare schemes.
Poor service quality: SIM box frauds use a cheap and substandard setup that affects call quality and service. These reflect poorly on the service quality standards of telecom businesses, thereby affecting reputation, customer trust, and erosion of customer base.
Damage to infrastructure: Overloading local networks affects the region’s infrastructure. Moreover, such scams demotivate businesses, resulting in low or no investment.
Compromised security and privacy: SIM box frauds compromise legitimate connections that have privacy and security encryptions, making information theft easy for hackers. Moreover, SMSs that are often used to communicate sensitive information via automated routes lose all privacy and security.
Threat to national security: SIM box frauds and interconnect bypass frauds escape legal intercepts by national security agencies, which track criminal activities. This becomes a significant security threat for the country.
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