Stealing and Reselling Phone Minutes
Interesting new variation of phone fraud:
For the telecoms, the profit is in using VoIP to deliver calls from one phone to another. That requires a “gateway” server to connect a carrier’s phone network to the Net. Phreakers break into these gateways, steal “voice minutes” and sell them to other, usually smaller, telecoms. Many of these firms then sell printed phone cards or operate call centers. “It’s a great racket,” says Justin Newman, CEO of BinFone Telecom of Baltimore, which has been stung by phreakers.