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10 Tips for Avoiding Business Phone Fraud


IDC estimates that annual revenue derived from location-based services will expand to (US) $5 billion in 2004. As revenues increase, so does the number of scams committed by fraudsters. Following are several cons businesses and employees should know about and ways to avoid them.

  • Limit the number of employees with access to remote features on your business' PBX (private branch exchange) system. Use an unpublished phone number rather than an 800 number for accessing remote lines.


  • When choosing a PBX authorization code, choose one with the largest amount of authorization numbers allowed. As with all access codes, choose numbers completely at random.


  • Have employees change their access codes frequently. Remember to cancel old and unused access codes on a regular basis. Ensure you cancel phone codes of former employees.


  • Avoid giving out technical information about your phone system. Shred documents listing any information about your PBX system.


  • Block dial-out functions on your company's voice mail systems to ensure there's no access to outside lines.


  • Be aware that phone service technicians almost never call and ask for assistance with testing phone lines. If you receive such a call, as for a callback number to first ascertain that the person is who he says he is.


  • If possible, route calls to a person rather than a machine. People often are able to detect fraudulent activity.


  • Evaluate your current equipment to determine your phone fraud risk. Investigate available software capable of quick and accurate phone fraud detection.


  • Create a plan to prevent phone fraud at your company and share it with your employees. Take time to educate employees about phone fraud. Tell them about the latest scams and how they can avoid becoming a victim of one.


  • Immediately report any suspicious phone activity to your carrier.
First published on BankersOnline.com 3/15/02



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