Businesses Could Be Subject to Phone Fraud Without Ever Answering the Phone

In today’s digital age, phone scams are becoming increasingly sophisticated, targeting not just individuals but also businesses. According to a report by BICS, a subsidiary of Belgian telecoms company Proximus, a staggering 170 million fraudulent calls were blocked worldwide in 2018, costing an estimated $17 billion annually.

The UK alone accounted for 25 million of these scam phone calls, representing 15% of the total and making it the highest in the G20 group of large economies. While many people are aware of the risks posed by scam callers, fewer realise that their business could be defrauded even without answering the phone. Understanding how these telephone scams work and how to report fraud phone calls is essential for safeguarding your business.

What is a phone scam?

A phone scam is any fraudulent scheme conducted over the phone, where scam callers attempt to deceive individuals or businesses into parting with money or sensitive information. These scams can range from direct attempts to trick someone into providing financial details to more complex schemes that exploit the technical vulnerabilities of phone systems.

While many phone scams involve a direct conversation where the victim is convinced to transfer money or reveal personal information, not all phone scams require direct interaction. The rise of automated and sophisticated scam phone calls means that businesses can be defrauded without even picking up the phone.

How can you be scammed if you don’t answer the phone?

It might seem counterintuitive, but businesses can fall victim to phone scams without ever answering a single call. This type of scam is known as telecoms or dial-through fraud. Here’s how it works:

Hackers exploit vulnerabilities in your business’s phone system—such as weak voicemail passwords, unprotected call forwarding features, or even malware that bypasses your corporate firewall. Once inside, these fraud callers can use your system to dial premium-rate numbers, often for hours or even days at a time, running up exorbitant charges that your business is then liable for.

These fraudsters typically operate during off-hours, like nights, weekends, or holidays when the scam is less likely to be noticed immediately. By the time you discover the fraud, the financial damage could be significant.

How to prevent phone fraud

To protect your business from telephone scams, especially dial-through fraud, consider implementing the following security measures:

1. Frequently change PINs/passwords: Regularly update all PINs and passwords associated with your phone system, including voicemail. Ensure that these passwords are strong, unique, and not the default settings (e.g., 1234 or 0000).
2. Restrict voicemail access: Disable or severely limit access to voicemail from external lines, particularly for remote workers. This reduces the risk of unauthorised access to your phone system.
3. Disable unwanted features: Turn off any features that are not essential to your business operations, such as international calling or call forwarding, especially outside of business hours.
4. Implement call barring: Set up a call barring plan that blocks calls to international or premium-rate numbers, which are often targeted by fraud callers.
5. Monitor your phone system: Work with your network provider to set up alerts for unusual or excessive charges. This can help you catch fraudulent activity before it causes significant financial damage.
6. Update your phone system: Keep your phone system’s software and security measures up to date to protect against the latest threats.
7. Train your staff: Ensure all employees are trained on how to use the phone system and understand the risks of telephone scams. Knowledgeable staff are less likely to fall victim to fraudulent schemes.
8. Conduct regular security audits: Just as you would with your IT systems, regularly audit your phone system’s security to identify and address potential vulnerabilities.

Other security risks to businesses

While phone scams are a significant threat, they are just one of many security risks that businesses face. Cyber threats, including phishing attacks, ransomware, and data breaches, also pose substantial risks. It’s essential to take a holistic approach to cybersecurity, ensuring that all aspects of your business, from phone systems to computer networks, are protected against potential threats.

Protect your business with Cyber Security Awareness

At Cyber Security Awareness, we understand the importance of protecting your business from all forms of fraud, including telephone scams. Our comprehensive security solutions are designed to help you safeguard your business’s assets and information. By implementing our recommended practices, you can reduce the risk of becoming a victim of phone scams and other cyber threats.

Remember, preventing phone scams starts with awareness. By staying informed and taking proactive steps, you can protect your business from the costly consequences of fraud. If you’re ready to enhance your business’s security, contact Cyber Security Awareness today to learn how we can help you build a safer, more secure business environment.