Combating Fraud in C#

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Combating Fraud
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Network operators have adopted many measures to identify and prevent cellular fraud Some of these measures include the following:
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Encryption This can reduce fraud because it makes the theft of ESNs much more difficult GSM networks also only transmit an ESN during the phone s initial use For all subsequent calls, a temporary ESN is used to minimize fraud Blacklists Operators cooperate to track the ESNs of stolen phones A central database enables network operators to disable stolen cellular phones on networks around the world Traffic analysis Operators can utilize sophisticated artificial intelligence software to detect suspicious calling patterns, such as a sudden increase in the length of calls or a sudden increase in the
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5
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Introduction to Cellular Networks
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number of international calls Thus, the software can help track possible fraud and, if necessary, disable an individual handset
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Legislation Many governments have enacted strict legislation that provides stiff penalties and fines for persons directly involved in cellular fraud In the United States, the Cellular Telephone Protection Act became law in April 1998 This law made it a crime to knowingly possess, use, or traffic in hardware or software knowing it has been configured to alter or modify a cellular phone without authorization
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The growing nature of the mobile market further complicates fraud efforts Owing to the vast amount of roaming agreements and interconnection agreements between carriers and a corresponding lack of realtime sharing of billing information, it is increasingly difficult for carriers to determine immediately if a roaming user is a valid one To fight fraud, the GSM member nations have established a Central Equipment Identity Register (CEIR) in Dublin, Ireland This large database tracks all GSM handsets in use worldwide and also maintains a list of known pirated or fraudulent handsets Three categories exist on the CEIR: white list, gray list, and black list The white list contains the International Mobile Equipment Identity (IMEI) ranges of all the mobile phones that are approved to operate on the GSM network The gray list contains the IMEIs of mobile phones that are suspected lost or stolen Mobile phones on the gray list will still be able to place and receive calls, but network operators will be notified on the usage of all gray list phones The black list contains the IMEIs of mobile phones that are confirmed lost or stolen Mobiles in the black category are not allowed to function on any GSM network In late 2000, an even simpler method of GSM cloning was discovered This attack takes advantage of existing legislation in Western Europe that limits the export of strong encryption products to certain nations like Afghanistan, Iraq, and North Korea Because the default version of the GSM standard does not utilize encryption, computer security experts determined that one could construct a phony base station to jam the signal from the real base station This phony base station then
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Part 2 Wireless Technologies and Applications
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communicates with the handset and tells the handset to turn off encryption Through this process, the phony base station could communicate with the handset and retrieve crucial authentication information like the ESN in clear text3 Cloning is also possible on CDMA networks, although it requires some more sophisticated techniques Successful cloning on CDMA follows the same principles as GSM networks (such as the interception of a subscriber s ESN) However, CDMA networks use an additional mechanism called a base station spreading code, which complicates the retrieval of the ESN In order to be successful, a CDMA hacker must crack a specific base station in order to obtain the spreading code Once the spreading code is located, the ESN can be retrieved However, as Stuart Jeffery of Synacom points out, obtaining the spreading code is not as complicated as it seems Because CDMA handsets must know the spreading codes to connect to the network, hackers could disassemble a standard CDMA phone, connect it to a PC, and obtain the spreading codes
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