Raids on SIM Box/GSM gateway fraudsters save mobile operators millions

Raids on
illegal fraudsters have revealed the size and volume of SIM box fraud being
perpetrated against mobile network operators. There have been recent publicised
raids in Mauritius, Haiti, Senegal, Jamaica, Afghanistan, Nepal, Pakistan,
Ghana and El Salvador.

These raids,
often prompted by information provided by fraud specialist consultancy
Revector, have led to arrests, prosecutions and the seizure of millions of
dollars worth of illegal equipment.

From our
knowledge of working in more than 60 countries, we estimated $150 million per
year was being lost by mobile network operators to illegal fraudsters. With the
recent spate of raids, we believe that was a conservative estimate the real
cost could peak at more than quarter of a billion dollars in annual lost
revenues,” Andy Gent, CEO of Revector.

‘SIM box’
fraud takes place when individuals or organisations buy thousands of SIM cards
offering free or low cost calls to mobile numbers. The SIM cards are used to
channel national or international calls away from mobile network operators and
deliver them as local calls, costing operators’ millions in revenue loss.

recently launched a new service that enables mobile operators to geo-locate
fraudulent SIM cards, alert the authorities to seize equipment and make
arrests. Recent raids demonstrate a strengthening of resolve by mobile

With our new
service, operators don’t just remove the illegal cards from circulation; they
can make arrests and deter others,” Gent added.  

One raid in
Haiti halted an illegal racket costing a mobile network operator more than
$750,000 per month in lost revenues. Another in Ghana seized equipment worth
more than $200,000 and with the capability to hold more than 300 SIM cards

The equipment
seized in Ghana could generate almost one million dollars per month in
fraudulent transactions. Revector has knowledge of networks where 300,000
illegal SIM cards are operating concurrently.

Illegal SIM
cards can generate 10 cents per minute for more than 20 days per month, costing
an operator up to $3000 per SIM card, per month in lost revenue.

offers mobile network operators, regulators and governments a quick and
cost-effective way to identify SIM box fraud, removing millions of dollars’
worth of fraudulent activity from their networks.

By Team
[email protected]