Fraud Protection
TELEPHONY FRAUD
GCI is committed to provide the highest quality telephone service at the lowest rate. One way to do this is to eliminate the fraudulent use of telephone services. GCI has prepared this section on Telephony Fraud to better protect our customers and reduce expenses associated with Fraud.
| Frequently Asked Questions |
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| What is Fraud? |
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| Fraud is the willful use of network services with the intent to avoid paying for those services. |
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| What is the cost of Fraud? |
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| Fraud is a mult-billion dollar world-wide industry with an estimated cost to the telecommunications industry of $4 billion each year. The typical telecommunications company can expect to lose approximately 10 percent of its gross revenues each year to fraud. |
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| What is the impact of Fraud on GCI? |
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| Fraud isn't simply foregone revenue. A telephone company is still required to pay other telecommunications companies for the use of their network in the origination, termination and/or transport of fraudulent calls. So the company incurs costs for the services used but collects no revenue to offset those costs. Reduction of fraud helps keep costs low for all customers |
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| How does GCI compare with other telecommunications companies? |
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| Because of our proactive and aggressive fraud program, we believe our losses are below industry standards. However, because most fraud goes undetected it is difficult to make direct comparisons. |
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| What is GCI doing to combat Fraud? |
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| GCI's Fraud Group uses a sophisticated software package that monitors the network and alerts them to potential fraud. Once alerted they investigate, and if fraud is occurring, take the necessary steps to terminate the activity. This group also informs and educates employees and customers on the various fraud schemes. |
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| What should I do if I suspect I am a victim of fraud? |
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| First, if you are on the phone, hang up! Then contact GCI Customer Service and provide them with as much information as possible. |
| Residential: |
Business: |
| 265-5400 (Anchorage) |
265-5454 (Anchorage) |
| 800-800-4800 (Statewide & Lower 49) |
800-800-7754 (Statewide & Lower 49) | |
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| What are the different Fraud scams? |
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There are a variety of different scams. Some have been around for years and others are relatively new. Some of the more common scams include:
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Calling Card Theft
To place a call with a calling card, a thief does not need to have physical possession of the card. Only the calling card number is needed and there are a variety of ways to obtain it.
1.) Outright theft of the calling card.
This occurs very infrequently as the customer tends to report the loss immediately. The calling card is then inactivated, making it of no value to the thief.
What you should do:
- Provide your calling card the same protection as your credit cards.
- If you suspect that your calling card has been lost or stolen, immediately report it to Customer Service.
- If you suspect theft, contact the local police and file a report.
GCI Customer Service:
| Residential: |
Business: |
| 265-5400 (Anchorage) |
265-5454 (Anchorage) |
| 800-800-4800 (Statewide & Lower 49) |
800-800-7754 (Statewide & Lower 49) |
2) Scam the calling card numbers.
In this scam, an imposter will call a customer and say they work for a telephone company or law enforcement agency and are investigating international calls placed with the customer's calling card. The imposter will request the calling card number to verify that the calls actually belong to the customer and to issue a credit. They will often say they don't need the entire number, just the first three digits of the PIN. With this information, they can easily figure out the rest of the calling card number. Once the calling card number is known, the scam artist is in business-either selling the card number or selling calls placed with the calling card.
What you should do:
- Never provide any information to unsolicited callers. (GCI representatives already have the information and will be able to service your account as needed.)
- If you doubt the legitimacy of the call, you should ask for the caller's name and number and inform them they will verify their identity and will return their call.
- Contact GCI Customer Service and verify the caller's identity. If it is a scam, report all the details to the representative.
3) Shoulder surf the calling card numbers.
Another method used in obtaining calling card numbers is "shoulder surfing". This consists of a thief either observing the customer entering the calling card number on a payphone keypad or overhearing the customer provide the numbers to an operator. The observation of numbers being entered can take place from locations close to the payphone or with the use of binoculars. There have been instances of the observation being recorded with the use of a video camera.
What you should do:
- Provide your calling card the same protection as a credit card. Do not share the card number with others as it can be abused the same as a credit card.
- Memorize the calling card numbers. This reduces the risk of the number being stolen as the card is used.
- Be aware of people loitering around the phone. Stand directly in front of the phone when entering the card number.
- When providing the number to an operator, speak directly into the mouthpiece using a normal conversational tone.
- If you suspect your calling card number has been compromised, immediately contact Customer Service and report it. They will inactivate the card and issue a new one.
Call Forwarding Scam
This scam occurs when a customer's phone is call forwarded to another location. Please note, if you do not subscribe to the call forwarding feature on your local telephone service you cannot be a victim of this type of fraud. There are a couple of different methods used in perpetuating this scam:
1) Scamming the call forwarding personal identification number (PIN).
This scam is similar to the calling card scam. An imposter will call the customer attempting to get them to reveal the PIN on the customer's call forwarding feature. With the PIN, the imposter can forward the customer's phone to another location, typically internationally. Fraudulent international calls will then be placed by dialing the customer's local phone number, which has been forwarded to the international location. The international calls are then billed to the customer's phone. In most cases, the imposter will sell this service to other fraudulent users.
What you should do:
- Provide your Call Forwarding PIN the same protection as a credit card.
- Memorize the PIN. This reduces the risk of the number being lost or stolen.
- If you suspect the PIN has been compromised, immediately contact Customer Service and report it.
- Have a password known only to you placed on your account.
2) The Prize Scam
Another call forwarding scam is started by an automated message left on your telephone informing you that you have won a prize or money. The message instructs you to dial a two digit code followed by a # or * and then a phone number. The phone number is typically an 800 number and is a long distance operator. The two-digit code is the local service provider's call forwarding activation code. The scam artists will then call the customer's phone number, be forwarded to the long distance operator and place calls that are billed to the customer's phone.
What you should do:
- If you receive a call like this, hang up. No legitimate sweepstakes or contest uses this method to contact winners.
- Know the numbers used for the Call Forwarding feature on your local telephone service.
- When using call forwarding, always verify the number before you forward your phone.
Long Distance Fraud via the Internet
The expansion of the Internet in the past few years includes an unfortunate growth in the number and types of scams that are taking place.
One of the most recent scams that has surfaced is Internet sites that, when viewed, result in the downloading of a program. This download usually occurs after the customer has "clicked" past a disclaimer and entered the site. It may appear to be a picture viewer or music player or is claimed to be required to obtain special "site specific" features. It is possible that the download takes place without the customer's approval or knowledge. Once downloaded onto your computer, this program "hijacks" the modem and disconnects the customer from their normal Internet provider and re-connects to the web via a new provider. The location of this provider will typically be either in an international location and the telephone calls will be billed at the corresponding international rates.
Typically web sites in question offer some type of adult entertainment. In most cases, the user had been "surfing the net" and had visited an adult oriented web site. Just after visiting the site, the long distance charges appeared.
What you should do:
- Avoid any sites in which they are not certain of the content.
- Thoroughly read any and all disclaimers before entering the site.
- Do not download any programs unless they are from a known, reputable source.
- Have your phone service provider place International and 809 (Caribbean countries) blocks or a complete toll block on the telephone line that is connected to the computer. A 900 number block is also recommended. Both the local service provider and long distance carrier should install these blocks.
NOTE: This scam has a potential impact only for Internet users who connect to the web via a dial-up connection.
PBX Fraud
This scam has been around for years and is directed at businesses that use a telephone switch called a Private Branch Exchange. PBX's are typically used in larger businesses such as hospitals, hotels, large corporations and government agencies. They handle all calls routed inside the building (or company). When the call is routed outside the building (or company), the caller has to dial an external line access code.
In the typical situation, a scam artist will call and attempt to con an unsuspecting worker into transferring them to an outside line. The extension requested often begins with a 9 (occasionally an 8) and often includes a country code. For example 9011, the nine is an outside line and the 011 will initiate a direct dial international call. They will also often pose as a telephone company technician who claims to be repairing or testing the phone lines and needs to be transferred to an outside line. Since many businesses often have international, 809 and 900 blocks installed on their lines, the calls will default to the operator. The scammer will then request the operator help place the call.
What should I do:
- Beware of unknown people asking for cooperation in testing the telephone line or PBX. Query the caller for additional information, such as employee ID number, supervisor's name or a callback number.
- Never transfer a call outside the PBX unless you are certain of the caller's identity.
- Work closely with the PBX administrator to ensure the all PBX security features are in place and implemented.
- Ensure your office staff is aware of this type of fraud and are educated in how to prevent it and how to report it.
- Unless required for routine business, have the international, 809 and 900 blocks installed. If the business places an occasional international call, this can be done with the use of a calling card.
Other links where information on fraud can be researched:
http://www.ftc.gov/
http://www.fcc.gov/
http://www.fraud.org/welcome.htm
http://www.callforaction.org/
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