Scammers Snag Money on Net Phones

Abstract

The emergence of voice over Internet protocol (VoIP) phone service has opened a new door for hackers and others to fool users. Using the Internet to transmit phone calls allows callers to spoof Caller ID systems, something that isn't possible with traditional phone service.Although telemarketers are required by the Federal Communications Commission to properly identify themselves, Caller ID spoofing is otherwise not prohibited. As a result, someone can, for example, call Western Union, which requires customers to call from their home phones to initiate money transfers, using a faked source number, and make a fraudulent transfer. In other instances, debt collectors and private investigators use Caller ID spoofing to trick people into answering their phones and possibly divulging information they otherwise would not. Scams similar to e-mail phishing rackets also take advantage of Caller ID spoofing, deceiving people into believing that a caller is at a bank or a financial institution and helping persuade them to reveal personal information to the caller.

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