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toll fraudToll fraud is a serious security threat for businesses that use VoIP (voice-over Internet protocol), which is especially susceptible to toll fraud. Besides being a type of fraud–which no business wants–toll fraud can cause serious financial damage for businesses.

Yet, some business owners are not aware of what toll fraud is nor of the steps they should take to ensure that it doesn’t happen to their business.

What is Toll Fraud?

Toll fraud is the stealing of minutes from and the tacking on of outrageous charges to both conventional phone systems and VoIP.

In the past, with legacy switches, toll fraud was very lucrative, but it was harder to accomplish, because phone companies relied on switches, and there was no connection to the Internet. Now, hackers target business VoIP systems, which often have more lax security than company computers, and are able to cash in on the toll fraud schemes.

Why Toll Fraud?

Besides stealing minutes, hackers get a cut whenever they commit toll fraud. Toll fraud is big business in some smaller countries that have primitive phone systems with little or no usage. These phone companies charge outrageous rates because very few people use them. Hackers will break into a business’s phone system and use their  VoIP to these select countries, racking up huge toll bills. The phone system makes its money from those toll charges, and the hackers get a cut.

Unfortunately, once a company falls victim to toll fraud, the business has little recourse but to pay for it. Most of the charges are paid to the terminating carrier in the country to where the phone calls were made.

Why is VoIP Vulnerable?

Because VoIP is easy to hack, hackers are quick to break into company telephony systems and commit toll fraud.

Even though the amount of money isn’t as big as it once was, the amount of money hackers can make, both for themselves and the countries that initiate the toll fraud schemes, is still sizable. Given that in 2014, the average cost of a VoIP attack was around $36,000, businesses need to be concerned about toll fraud, because most small businesses are unable to absorb that kind of hit.

Because businesses are likely to consider that now that they have VoIP, they simply get free calling and toll fraud shouldn’t concern them, businesses are more likely to become victims of toll fraud. Because toll fraud operates differently, it becomes all that more imperative for businesses to protect their VoIP systems.

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