Quantcast
Latest Stories

Hundreds of hackers linked to telco fraud

Smart cites ‘substantial’ loss after arrest of 3 Taiwanese in Makati

By ,

MANILA, Philippines—Local telecom firms lose millions of pesos in revenues annually to hundreds of illegal operators that bypass global payment systems to convert long-distance calls to domestic.

A leading telecom executive on Tuesday described the magnitude of the problem following the arrest on Friday of three Taiwanese nationals and their Filipino cohort for allegedly running a call bypass fraud syndicate from their condo units in Makati City.

The arrests were made by the National Bureau of Immigration on a complaint from Smart Communications Inc.

“It is definitely a substantial amount,” said Smart spokesperson Ramon Isberto, who declined to give figures when asked how much his company has been losing to such syndicates.

Isberto said Smart is monitoring “several hundreds” of possible international call bypass operations mostly based in Metro Manila. The company can look into these activities by checking for unusually heavy usage patterns by individual SIM (subscriber identity module) cards on its network, he said.

Using advanced computer technology, he said, syndicates may be able to bypass the normal payment systems for international calls. As a result, long distance calls are only charged as domestic calls.

Isberto said the criminals tap this technology by selling long-distance call cards overseas. “These cards usually tell users to call a certain number. Then the operators here are able to switch the call to make it seem like a domestic call,” he added.

NBI agents on Friday arrested Taiwanese nationals Wen Shang Yang, Huang Jian Wei and Jang Yuan-JR, as well as Filipino citizen Ruben Vallespin, inside their respective units at Makati Cinema Square Tower on Chino Roces Avenue and at Palm Towers in Barangay San Antonio also in Makati.

Rolando Paruli Jr. of the NBI’s Computer Crimes Unit (CCU) said the raiding teams also seized GSM (global system for mobile) gateway devices, routers, cables and “thousands of assorted SIM cards.”

The suspects were detained at the NBI headquarters in Manila and charged with theft and violation of the Access Devices Act and E-Commerce Act before Makati City prosecutor Analie Brual.

A complaint filed by Smart at NBI-CCU noted the extraordinarily big volume of international calls monitored from the condominium units.

The NBI secured search warrants from Manila Regional Trial Court Executive Judge Marino dela Cruz.

According to Paruli, call bypass syndicates usually contact international gateway operators and offer cheaper termination fees, enabling them to corner deals while using legitimate gateway facility operators like Smart.

While call bypass operations are legal overseas, only a few companies are licensed to operate in the Philippines, the NBI official said.

Both Isberto and Paruli said the government also loses heavily in terms of unpaid taxes due to these illegal operations.


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

5 Filipinos with MERS in UAE reported in stable condition 3 mins elapsed Pope sends condolences for S.Korea ferry victims 8 mins elapsed Drone kills 15 ‘Qaeda,’ 3 civilians in Yemen – security 18 mins elapsed PH boosts MERS monitoring after UAE nurse scare 23 mins elapsed Canadians back PH plea to take back waste 29 mins elapsed Palace expects Gigi Reyes to tell all on pork scam 30 mins elapsed MLB pitcher donates $100,000 for Sewol ferry victims 50 mins elapsed MH370 search at ‘critical juncture’–Malaysia 1 hour elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Access Devices Act and E-Commerce Act , domestic calls , Hackers , illegal operators , long-distance calls , Smart Communications Inc. , telco fraud , Telecom firms

  • goldilock

    Use skype

  • pening_garcia

    MABUHAY ANG MGA HACKERS!!! KEEP ON HACKING THOSE GREEDY BAS TERDS!!!

  • ryan andres

    The fact that most, if not all comments below are airing the same sentiment should be enough evidence for these greedy b@stards to change their ways.

    Sige na Smart at Globe, mahal na araw naman eh… umayos na kayo please.

  • RRSPEAK

    To the Greedy Telcos : Better not exercise trickery upon your fellowmen for selfish GAIN, for you will also be outwitted and experience an unpleasant PAIN. ………………. Atin ngang iwasang mandaya ng KAPWA para lang sa pansariling GINHAWA, pagka’t matalino man ang MATSING ay napaglalalangan DIN. —————> It looks like SMART got OUTSMARTED …………. Hahaha !!! ((^_^)) ☻☺☻☺☻

  • RRSPEAK

    To the Greedy Telcos : Ang MASAMA ay di dapat GINAGAWA sa ating mga KAPWA, pagka’t anumang bagay na sa kapwa’y GAWIN ay mangyayari din SA ATIN, kaya nga’t gawin sa iba ang gusto mong gawin nila sa iyo, at huwag gawin sa iba ang ayaw mong gawin nila sa iyo (ref: Mateo 7:12). ((^_^)) ☻☺☻☺☻

  • RRSPEAK

    To the Greedy Telcos : It is but proper not to do anything MEAN to our fellow HUMAN BEING, because whatever evil we do to a FELLOW HUMAN will undoubtedly BOOMERANG, that is why we should do to others what we like them to do to us, and we should not do to others what we don’t like them to do to us (ref: Matthew 7:12). ((^_^)) ☻☺☻☺☻

  • D L

    Smart and Globe are the dаmn robbers, the slowest internet in asia.

  • TrentonWoods

    Actually this telco are the one who steal from the people through vanishing load. 



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. Nasa’s moon-orbiting robot crashes down
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens seethe over Aquino’s ‘sacrifice’ message
  4. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  5. Netizens pay respects to Gabriel Garcia Marquez
  6. Nokia recalls 30,000 chargers for Lumia 2520 tablet
  7. Facebook rolls out ‘nearby friends’ feature
  8. Filipinos #PrayForSouthKorea
  9. Taylor Swift tries video blogging, crashes into fan’s bridal shower
  10. Mommy Dionisia Pacquiao scores, takes over social media
  1. Did Deniece Cornejo lambast Vhong Navarro on social media?
  2. Mommy Dionisia Pacquiao scores, takes over social media
  3. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  4. Memes flourish after Pacquiao victory
  5. Nude and so dangerous
  6. Netizens react to Pacquiao’s victory over Bradley
  7. IT technician found guilty of defrauding firm of P130,000
  8. Netizens seethe over Aquino’s ‘sacrifice’ message
  9. Philippines may watch ‘blood moon’ online
  10. Online-addicted man arrested over son’s death
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  7. Russia tries to curb Crimean prosecutor’s Internet fame
  8. Memes flourish after Pacquiao victory
  9. Why didn’t missing jet passengers use their cellphones?
  10. Netizens thank Capa for Lee arrest

News

  • Pope sends condolences for S.Korea ferry victims
  • Drone kills 15 ‘Qaeda,’ 3 civilians in Yemen – security
  • Palace expects Gigi Reyes to tell all on pork scam
  • MH370 search at ‘critical juncture’–Malaysia
  • 16 workers in Batangas sugar cane factory hurt over toxic chemical shower
  • Sports

  • MLB pitcher donates $100,000 for Sewol ferry victims
  • Hamilton takes pole at Chinese Grand Prix
  • Duke’s Rodney Hood joining Jabari Parker in NBA draft
  • Phelps entered in 3 events at comeback meet
  • Boston prepares for huge wave of marathon visitors
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • Fiat-Chrysler to produce iconic Jeep in China from 2015
  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • 5 Filipinos with MERS in UAE reported in stable condition
  • PH boosts MERS monitoring after UAE nurse scare
  • Canadians back PH plea to take back waste
  • We treasure our Sierra Madre
  • OFW from UAE tests negative for MERS-Cov–health chief
  • Advertisement
    Marketplace