Cyber Criminals Using Mobile Toll Fraud to Make Illegal Gains

Mobile security firm Lookout Mobile announced that toll fraud is gaining popularity amongst cyber criminals looking to make illegal gains from unassuming consumers.

The latest scam technique targeting mobile phones has increased drastically, and accounts for 79 percent of the total amount of malware detected by the security firm. Cyber criminals use malware to charge unassuming victims with fake premium services and are targeting victims in Eastern Europe, Russia, the Middle East and China. It’s reported that almost 42 percent of users have detected malware existing on their mobile phones when they installed Lookout’s app.


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While it’s harder to pull off these kinds of scams in the US, weak SMS regulations and lax mobile security measures make mobile phones more vulnerable in many areas of the world. Android phones are found to be more susceptible to toll fraud than Apple’s iOS device, which is attributed to the fact that iOS devices only accept apps from Apple’s App Store.

Premium services such as daily horoscopes, the purchase of a new ringtone, or basically any content that can be purchased and delivered to a mobile phone can be susceptible to toll fraud. The hackers use a malware that acts as a barrier between the consumer and the service provider, stealing the amount the consumer purchased before it reaches the provider.

One such type of malware reported to top the charts in toll fraud is the family of apps from FakeInst, which bills victims that use premium SMS services. The malware is said to pose as an installer for legitimate apps such as the WhatsApp Messenger and Opera.

"They work in a way that can potentially hide red flags from the victim, including intercepting premium SMS billing messages,” said Derek Halliday, senior product manager for Lookout.

While security providers are rolling out apps to install security measures and decrease toll fraud, they are also encouraging users to be vigilant and employ a healthy level of skepticism when it comes to browsing and purchasing online.

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