[comp.dcom.telecom] Omaha Utility Victim of Phone Fraud

Jack.Winslade@uunet.uu.net> (05/09/91)

 From the front page of the evening {Omaha World-Herald}, May 8, 1991

Long Distance Scam

OPPD LEFT HOLDING BILL FOR THOUSANDS OF CALLS

By James Allen Flannery, World-Herald Staff Writer

Thousands of telephone calls -- including a substantial number to
foreign countries -- were illegally charged last month to an 800
number assigned to the Omaha Public Power District.

The FBI, which is investigating the calls, said a number of other
businesses -- particularly on the East Coast -- are similarly being
victimized.

"Because telephone technology is changing, the ways people accomplish
fraud are changing," said a spokesman for US West in Omaha.

People familiar with the phone scam said callers gain access to
elaborate voice mail systems, punch in certain phone extensions and
receive access to open lines that allow them to dial anywhere in the
world at the victim company's expense.

An FBI spokesman said ferreting out the abusers would be difficult.

"There's not much domestic law enforcement authorities can do unless
the company that provides the service and the victim company can
identify the subject placing the call."

OPPD officials said they think they have taken corrective action.
They estimated that the utility has been charged "tens of thousands of
dollars" for fraudulent calls.

An exact accounting was being prepared Wednesday.

"We discovered late last week that there was an excessive number of
international long distance calls being billed to our account by
people who had accessed our computer system," OPPD President Fred
Petersen said.

"Bizarre things have happened with our telephone system," he said.
Somebody has figured out a way to access our system.  We're working
out a way with US West, AT&T, and the FBI to stop it completely."


BUSY WEEKEND

About 1000 telephone calls were placed Saturday and another 1000
Sunday through OPPD's 800 number.  That is about 20 times the normal
weekend volume.

OPPD officials declined to disclose the destination of the calls.
Persons familiar with the scam said a number of calls were to the
Dominican Republic.

Communications workers for the utility spotted the fraud last week
when OPPD received its monthly telephone bills.

OPPD's security force was alerted.  Then the FBI and the toll fraud
division of US West in Denver were contacted.  Petersen said OPPD
immediately reduced the number of lines on which 800 calls can be
placed.  Normally, he said, there are 10 such lines.  But some of the
lines remained open over the weekend so investigators could monitor
the calls and try to determine where they were coming from.


EAST, WEST COAST LINES

People familiar with the probe said the calls appeared to be coming
from telephones on the East Coast and West Coast.

OPPD is basing its estimates of the extent of the fraud on the number
of apparently illegal calls in the first few days of April.  Calls
made then showed up in the utility's last telephone bill.

"Outside callers were able to access by calling our long-distance
number, or 800 number, and getting an outgoing line," OPPD spokesman
Gary Williams said.

He said the 800 number was established about three years ago to
provide energy assistance information to OPPD customers in 13 Nebraska
counties.

Williams said OPPD has monitored calls and is taking action "to
protect the system."  He declined to be specific.

Where did the calls originate ?  "WE're playing close to the vest on
that, Williams said.


UNDER REVIEW

He said there was nothing to indicate that OPPD employees placed the
calls.  "It is under review how we will pay for it," Williams said.

"I don't think we're embarrassed by it," he said.  "We're angry about
it as we would be with any improper use of our facilities.  From what
I hear, we're not the only outfit it's happened to."

                        -------------

Good Day!       JSW

sbrack@iuvax.cs.indiana.edu (Steven S. Brack) (05/13/91)

        Does anyone know why the OPPD connected its 800 system to
outgoing lines?  It doesn't seem like a bright thing to do.


Steven S. Brack                  |  sbrack%bluemoon@nstar.rn.com  |
Jacob E. Taylor Honors Tower     |  sbrack@bluemoon.uucp          |
The Ohio State University        |  sbrack@nyx.cs.du.edu          |
50 Curl Drive.                   |  sbrack@isis.cs.du.edu         |
Columbus, Ohio 43210-1112   USA  |  brack@ewf.eng.ohio-state.edu  |
+1 (011) 614 293 7383            |  Steven.S.Brack@osu.edu        |

KATH MULLHOLAND <K_MULLHOLAND@unhh.unh.edu> (05/15/91)

Jack Winslade posted info about fraud through a voice mail system.
Just a few days ago we received a very interesting letter from AT&T
warning us that our voice mail system could be used to access outgoing
lines and make fraudulent calls for which we could be held liable.  I
immediately called AT&T to ask them what the prevention for this was.
they were "not at liberty to say.."  The representative would not
answer any questions about what we should or should not do to prevent
this fraud.

I can understand AT&T not wanting to print an instruction manual for
voice mail fraud, but if they are going to send a warning letter, they
should be willing to assist us in avoiding the pitfalls.  As it is, we
can only guess whether our system is secure.


Kath Mullholand        UNH  Durham, NH