The Channel logo


By | John Oates 8th June 2006 09:51

Two charged with VoIP fraud

Hacking returns to phreaking roots

Two men were arrested yesterday and charged with wire and computer fraud. They are accused of secretly routing phone calls into VoIP services without paying for them.

Edwin Pena, a 23-year old man living in Miami, started two companies offering wholesale phone services - smaller telco providers often buy bulk packages of minutes from such companies. But Pena wasn't buying wholesale telco minutes, he was getting them by hacking into various VoIP providers. Robert Moore, 22-years-old from Spokane, Washington, allegedly helped him.

To cover their tracks the two routed calls through unprotected network ports at other companies to route calls onto providers. Over three weeks, the two routed half a million phone calls to a VoIP provider in Newark via a company based in Rye Brook. Federal investigators believe the two made as much as $1m from the scam.

Observers say the ease with which the two accessed the networks shows a general lack of security among new VoIP providers

Moore is currently free on bail while Pena has a bail hearing later today. More from the New York Times here. ®

alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe