Dear Reader,

In this June edition of our newsletter we would like to bring your attention to the re-occurence of SIM cloning fraud.

Because it is not economically viable to replace older generation COMP128-1 SIM cards, the risk of SIM cloning is a legacy problem for many operators.

Attacks are on the increase
SIM cloning is a low probability/high impact type of fraud, meaning that it can strike when most unexpected. Even after all these years, SIM cloning attacks on cards using the flawed COMP128-1 algorithm continue to occur.

Other recent incidents highlight the scale of the problem with individual reports of more than 15 clones of the same SIM card, and losses over USD 500,000. Fraud intelligence shows that these SIM cloning incidents are linked (same IMEIs, originating countries and called numbers).

The problem with SIM card replacement
Of course operators should long ago have stopped buying and issuing cards containing the COMP128-1 algorithm, but as many will tell you, the “business case” is not there. A full replacement is costly and even impossible.

Natural replacement will gradually phase out the use of legacy COMP128-1 cards, but in the interim, operators need solutions to detect SIM cloning fraud, and meanwhile can just hope that the COMP128-1 SIMs do not fall into the wrong hands.

Detection made easy
Time is the critical factor, and early detection will help eliminate the fraud exposure. NRTRDE and the use of advanced detection algorithms (velocity checks, parallel calls, unusual IMEI and location IDs) or SS7 monitoring are the most effective ways to combat the problem.

For more information please visit http://www.xintec.com or request a demo of our fraud management software

http://www.xintec.com/fraud-management-solutions.aspx

We look forward to your visit!

Sean Killeen
CEO
XINTEC S.A.
sean.killeen@xintec.com
Phone (+352) 26 37 47 56