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NETWORK SECURITY


www.comms-dealer.com Hacked off with fraud


Awareness in the channel of phone hacking remains minimal despite the scale of the problem. According to Ian Kilpatrick, Chairman at distributor Wick Hill, it is crucial for resellers to understand their responsibilities regarding network security.


In delivering solutions to customers which truly secure them, they will not only retain those customers but will attract more security sales as the benefits of such solutions spread by word of mouth.”


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osses due to global telecom fraud amount to an estimated $72-80 billion annually, according to


figures from the Communications Fraud Control Association (CFCA) Telecom Fraud Survey 2009. Subscription/ID theft accounted for around $22 billion, compromised PBX voicemail systems for $15 billion and premium rate service fraud $4.5 billion. The more money criminals make, the more they can invest in increasing their activities. To exacerbate the problem, 90 per cent of resellers still don’t fully appreciate the security risks of IP telephony, claims Kilpatrick. “There is little focus on security,” he said. “Resellers aren’t informing their clients of the risks or advising them to run checks, which would be an easy thing to do.”


This all adds up to a potential headache for many comms resellers. “If I hack into a voice network I can potentially listen in on calls and get information like credit card details etc,” said Kilpatrick. “The extent of this problem is not fully quantified because it’s in nobody’s interest to admit that they’re vulnerable. The perpetrators don’t want to be found out, and the victims are either unaware of the source of the information leakage, or if they become aware of it, they simply don’t want their problems and security failings to be publicised.”


This means that proving the extent of the problem is difficult, but there is enough information to show that phone hacking is not just a potential risk, but a real risk. “You can use toll (premium rate call) fraud as a comparison,” added Kilpatrick. “Most people conceal any problems they have with it. In the channel, there’s little discussion about the nature and size of toll fraud in the UK. The only toll fraud statistics available are global figures. This is despite the fact that the channel and many of the carriers are aware of how much toll fraud affects them. There is information, but nobody wants it given out because nobody wants to be responsible for it.”


Phone hacking is also an easy route into data hacking and is becoming more common for a number of reasons, points out Kilpatrick. Tools are freely available to carry out these crimes, and a lack of prosecutions encourages criminals to perpetuate the crime. “The hacking can be carried out from outside the domain and there are large sums of money involved,” added Kilpatrick. “In many cases, it’s easier to carry out these acts in the environment of voice rather than data.”


Clients will hold the reseller responsible, warns Kilpatrick. “If network security isn’t an area of expertise resellers need to


90 per cent of resellers still don’t fully appreciate the security risks of IP telephony


Ian Kilpatrick


“In the channel, there’s little discussion about the nature and size of toll fraud in the UK”


mitigate their responsibility,” he said. “Resellers need to manage the customers’ expectation and their future business relationship by pointing out that they will not be taking responsibility for the security. But, if resellers do that they are missing out on an opportunity. Adding security solutions to their portfolio introduces considerable benefits both financially while improving their reputation.”


Customers expect a duty of care from resellers rather than being left exposed to dial through fraud. Legally, it’s the user’s responsibility. However, with both resellers and carriers involved in the chain it can get messy, particularly where there’s been no discussions about security. Kilpatrick commented: “While there are some areas around toll fraud where people would look to the carrier for anti- fraud measures, security solutions are available and clients will typically look to their resellers if toll fraud occurs. Clearly, in addition to the unwanted costs, business relationships are also damaged.”


Security for IP telephony is a huge area for differentiation and adding value, noted Kilpatrick. “For those resellers who take up this challenge the margins are good.


helping you reach customers - near or far 46 COMMS DEALER JANUARY 2011


There are also other areas of security failure, such as problems arising from the loss of unsecured phones or PBX hacking, where the issue more clearly lies around the sales process and the opportunity for clients to buy security solutions to protect themselves. In these cases, the client will look to the reseller when things go wrong. “As people become more aware of the solutions to IP telephony security problems, the blame will go on the reseller who could have presented a solution.”


Commercial solutions are available for resellers to help minimise and avoid toll fraud. An example includes Panasonic’s TDE and NCP voice switch platforms which incorporate Callista’s Control Phreak and run in real time to prevent dial-through phone fraud. Kilpatrick added: “The solution works in the background to stop illegal call traffic instantly and allows for user regulation so problem calls can be blocked, while genuine voice traffic can carry on unimpeded. Its low price makes it suitable for SMEs as well as enterprises.”


It’s also worth looking at the issue of smartphone security, pointed out Kilpatrick. Research by getsafeonline.org shows that approximately one in five owners of smartphone devices can expect to lose or have them stolen at some point. “Smartphones contain a huge amount of sensitive personal and work-related data,” Kilpatrick commented. “They can connect to the company network, potentially allowing access if phones are lost or stolen. This means that there are opportunities to sell security solutions that help manage and protect smartphones, as well as minimising the problems if they are lost.”


T: 0844 871 1122 E: sales@maintel.co.uk W: www.maintel.co.uk


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