The following is an article from the January issue of MCI World, a monthly newsletter published by MCI for it's employees.

THE MANY FACES OF FRAUD

The new year will see a stepped up MCI attack on telephone fraud--illegal use of the long distance network through access by stolen authorization codes or electronic devices.  The offensive is led by Everick Bowens, senior manager of MCI's security investigations department and president of the industry-wide Communications Fraud Control Association (CFCA).  Success in curbing this theft of service has earned MCI security investigators a reputation as super sleuths at headquarters and in the divisions.

New teeth were added to the attack on telephone fraud when the U.S. Scret Service was assigned to augment continuing investigative efforts by the FBI and other law enforcement agencies.

Because telephone fraud is outright theft from the company, MCI is determined to prevent, detect, investigate and prosecute any illicit use of its network.  To learn more about how MCI conducts its antifraud campaign, MCI World talked with Bowens.

MCI World:  Is it true that MCI has systems that can detect fradulent activity while it is occuring?

Bowens:     Yes: Our fraud systems detect abnormal usage and hacking. The systems also help us to track down offenders even when we have only the authorization code he or she is abusing.  Because we can profile abusers and trace phone calls, it is easier for  us to prepare cases for prosecution.

MCI World:  Abuses involving computer "hacking" to get authorization codes seem to attract public attention. But there are other types of fraud equally damaging to the telecommunications industry.  Would you identify some of these?

Bowens:     The primary form of abuse is by "hackers," who use computer programs to derive customers' authorization codes.  These codes can be widely disseminated via electronic bulletin boards. Because many of these boards are public, the codes fall into the hands of anyone with access to the boards. We also encounter electronic toll fraud, wich involves tone-generating devices that allow offenders to place fraudulent calls.

MCI World:  Is one type of fraudulent activity more prevalent than another?

Bowens:     Natonwide, fraud  most frequently originates from military posts, college campuses and prison--places where there are numbers of people far from home, or who have little else to do but manipulate the telephone.  This type of abuse prompts the bulk of our investigations.

MCI World:  Who is most likely to commit fraud?  Is there a general profile of the common offender?

Bowens:     Computer crime typically occurs in affluent, metropolitan suburbs and involves juveniles.  Electronic fraud also occurs in major metropolitan areas.  Other abusers, such as high-pressure telemarket-
eers, usually follow the coast lines.  California and Florida, for "boiler room" operations in which phone service is used illegally to sell merchandise.  However, fraud can't be totally attributed to any specific group at any particular time.

MCI World:  How can you keep up withh code abuse and fraud?  Don't offenders change frequently?

Bowens:     Interestingly enough, the patterns don't change much. Those who commit fraud form a finite community that doesn't expand a great a great deal over time.  Casual offenders, individuals who may take advantage of a "hot" toll free number, will use the number only when it's hot.  Once the number no longer works, they'er not likely to repeat the offense.  On the other hand, repeat offenders are dedicated to getting something for nothing.  They're somewhat easier to identify because they commit the same offense over and over.

MCI World:  How does MCI know when it is the target of fradulent activity?

Bowens:     Our systems generally alert us, or an employee or a customer informs us.  People know the MCI name.  When they recognize something happening illegally with an authorization code, they'll get in touch with us.  People generally feel that a cheat is a cheat, a crook is a crook, and if they have to pay full value for a phone call they see no reason why someone else shouldn't.  There also ar professional tipsters who go from one company to another offering information for a price.  However, we rarely deal with them.

MCI World:  Which MCI people, by the nature of their jobs, are most likely to detect or at least suspect, fraudulent activity?

Bowens:     Our switch technicians have been very instrumental indetecting abuse.  They're in a position to identify extensive busy signals on circuits, abnormal calling patterns and code use.  They've identified many hackers just by reviewing their daily call statistics. Employees in our billing department are also good at spotting unusually large bills and abnormal patterns.  Though most fraud is detected by the systems we ahve in place, the human eye continues to be extermely helpful.

MCI World:  In addition to working with internal people to help detect fraudulent activity, you also rely on the expertise of external agencies. Which outside agencies assist you with investigations.

Bowens:    When fraudulent activity involves the theft or illicit use of authorizatin codes or credit calling cards, MCI and the Secret Service work together to investigate the case.  If other activity is involved, such as the use of our service in furtherance of other crime, MCI works with the FBI.  When the U.S. Postal Service is manipulated in a fraud case, MCI anb postal inspectors investigate together.  Additionally, Bell operating companies often provide hard evidence in cases that MCI prosecutes.

MCI World:  When you are alerted to suspected fraudulent activiy, what steps do you take to open and pursue the case?

Bowens:     Security investigators contact the customer whose code is being abused, advise them of MCI's suspicions, and attempt to confirm them.  If the response confirms their suspicion of fraud, they open
the case.  Normally, an investigation entails much research into toll records to identify abusers, unusual call patterns and the parties who might be involved in illicit activity.  We also interview parties receiving the calls and document their statements.  Once we collect sufficient evidence, we decide whether a case should be pursued as a criminal or civil action.

MCI World:  How long does it normally take MCI's investigators to "crack" a case?

Bowens:     Typically, investigators can crack a case within hours. identifying fraud suspects is the easy part.  Amassing the evidence--dotting all  of the legal i's and crossing the t's--is tougher.  Gathering evidence may take weeks and large cases involving many parties can take months to solve.

MCI World:  With fraudulent activity knowing no geographical restricitons, how do you segment the problem divisionally?

Bowens:     The security investigations department acts primarily in an advisory capacity, helping investigators in the divisions with procedural matters.  The divisons generally take responsibility for investigating fraudulent activity within their jurisdicitons and corporate investigators pursue cases that are large in scope or require specific expertise.  Coporate also takes on cases invovling ofenders operating in more than one division.

MCI World:  Cna you elaborte on MIC's goals for reducing the level of fraudulent activity?

Bowens:     we want to reduce fraud to the lowest possible level.  One of MCI's goals is to cut fraud by more than half in 1986.  We want to be the industry leader in curbing this illegal activity.

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Duh......which way did they go George, which way did they go??????

