Mobile phone fraud

There are a number of ways mobile phones can be used to commit fraud. This is credit card fraud on prepay phones, which involves using a stolen or compromised credit card number to add value, or airtime, to a prepay mobile phone.

This is a problem experienced by most mobile network providers around the world and the problem also exists within New Zealand.  Within Vodafone, they analyse credit card recharge data to identify any fraudulent transactions.  Once a fraudulent transaction is identified, they will generally withdraw the value of the fraudulent recharge, and ‘blacklist’ the offending MSISDN or phone number to remove it from their network. In cases where a mobile phone handset is repeatedly used for credit card fraud with multiple SIM’s, they will also ‘blacklist’ the handset to prevent it’s future use on their network.

Regrettably a lot of those Vodafone deals with in respect of fraudulent Prepay top-ups are young people (under 18). Some basic tips to avoid having your SIM or IMEI blacklisted for credit card fraud are:

• Don’t succumb to temptation. If someone offers you a credit card number to use to add airtime to your mobile phone, remember that it is unlikely that this transaction has been authorised by the card owner. To proceed will put you in a situation where you could face prosecution under the Crimes Act for fraud.

• Don’t accept offers of ‘discounted’ purchases for prepay airtime.  Some people with stolen credit card numbers will approach prepay mobile phone users and offer to add say $20.00 worth of airtime for $10.00.  Accepting this offer could result in you being a party to that fraud.

• Don’t lend your prepay phone to others who guarantee to add value back to your phone once they have used it.  If they use a compromised credit card to do this, then you are the one who is going to be inconvenienced in the event that your number is ‘blacklisted’.