Authentix Inc., a new Calif.-based company, said it developed a fraud detection method aimed at stopping bandits who clone phones and then roam.
Current fraud fighting tools detect invalid mobile identification number-electronic serial number combinations or identify unusual calling patterns.
Authentix detects cloners who roam by verifying a subscriber’s identity, not just the phone’s identity, said Peter McCoy, Authentix vice president of marketing and planning. When a customer wants to roam, a cellular provider in that roaming market signals the customer’s home market. Once the home market validates the customer’s MIN-ESN, the phone is ready to use. This has encouraged a high rate of fraud because cloners scan MIN-ESN numbers in one market and roam with them in another, McCoy commented.
Carriers’ fraud detection mechanisms may not recognize illegal activity outside the customer’s home market until the legitimate customer receives the bill. As a result, a number of carriers temporarily suspend roaming in certain markets.
Authentix interrupts the roaming activation process. A phone’s MIN-ESN is not only validated, but the roaming user must verify his or her identity before placing calls. Specific personal information about each customer is stored with the network. When the caller repeats that information to an operator or automated system, a match is made and the subscriber is cleared to roam.
Some carriers require roaming subscribers to enter personal identification numbers when roaming. McCoy said the company’s Roaming Fraud Prevention System is a broader solution to the problem of roaming fraud.
“With the combination of interoperability, automated secure verification and operator services, we can provide a simple solution nationwide, for all carriers,” said Mal Gurian, Authentix chairman.
The company said its new product will be available to carriers by summer. Authentix operates from a network-based, nationwide platform. The company is partnered with Independent Telecommunications Network Inc. of Overland, Kan., and the National Dispatch Center Inc. based in San Diego to fight this type of roaming fraud. ITN, which operates a Signaling System 7 network, will provide the gateways to intercarrier networks, said McCoy. The company serves more than 275 local, interexchange and wireless carriers in North America. NDC will provide the verification services.
