Phishing by Phone -- VoIP Raises Security Concerns

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Reuters Published on ZDNet News: March 20, 2005, 6:11 PM PT

Internet phone services have drawn millions of users looking for rock-bottom rates. Now they're also attracting identity thieves looking to turn stolen credit cards into cash.

Some Internet phone services let scam artists make it appear that they're calling from another phone number -- a useful trick that enables them to drain credit accounts and pose as banks or other trusted authorities, online fraud experts say.

"It's like you've handed people an entire phone network," said Lance James, who as chief technology officer of Secure Science sees such scams on a daily basis. [.....] Debt collectors and private investigators use's 5-cents-per-call service to trick people into answering the phone, according to messages posted on a discussion board.

Traveling salesmen say the service comes in handy when they want clients to return calls to the main office, rather than their motel room.

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How to Distribute VoIP Throughout a Home:

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Jack Decker
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