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Newsletter - February 2005

 
 

Phreaking out!!

Imagine getting a monthly phone bill for almost $400,000 when your normal bill is less than $1000! This is exactly what happened recently to a victim of PABX hacking or phreaking.

"With all the precautions being undertaken to prevent computer network hacking these days, it is surprising how little mention is made about phreaking or PABX hacking,” said Denis Rowe, national marketing manager, Macquarie Telecom. “While perhaps not as common as the current spate of phishing scams hitting Australia, it is lethal in its cost to business.”

According to the US-based, Communications Fraud Control Association, annual worldwide telecom fraud losses are believed to be in the range of US $35 - $40 billion.

In Australia, over the past few years, a steadily increasing number of attacks on corporate PABX and Voice Mail systems have been recorded. And yet, while companies are investing heavily to protect IT systems from hackers, they seem to have forgotten about the telephone system.

Phreakers breech PABX security and re-originate calls to anywhere in the world. While it has been going on for many years, the widespread use of email, the Internet and mobile communications has left company ‘weak spots' open to exploitation by ever more sophisticated phreakers.

According to Rowe, businesses are losing hundreds of thousands of dollars every year.

“Phreakers don't discriminate between small or large business – in some instances the costs can be enough to put a company out of business,” he said.

Recent Australian attacks resulted in individual bills amounting to hundreds of thousands of dollars in just a few weeks.

Minimising the risk?

There are a number of simple precautions business and government can put in place to lower the risk of phreaking. These include:

  • Change all default passwords on remote access to PABX and Voice Mail systems

  • Potentially disconnect remote programming modems when not in use

  • Implement a policy of monthly changes to personal voicemail and remote access pins

Macquarie Telecom customers benefit from the added advantage of VolumeControl, a management tool which monitors all outbound traffic. An embedded alert service flags call patterns that are unusual for the business and might indicate hacking. The alerts are provided via email or SMS within 24 hours of Macquarie receiving the traffic reports.

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