ComReg set to block calls to 14 countries in bid to stop 'modem hijacking'

The communications regulator is proposing to block telephone calls to 14 countries in an attempt to prevent internet fraudsters targeting Irish consumers.

The Commission for Communications Regulation (ComReg) has made the proposal following an upsurge in cases of 'modem hijacking', whereby internet hackers based in offshore locations re-route a computer user's telephone link to the internet.

Since the start of the year, more than 200 consumers have fallen victim to these auto-dialling frauds, which in one case caused an Irish business to incur telephone charges of €12,000.

Auto-dialling fraud or modem hijacking enables a fraudster to install software on a consumer's machine without their knowledge and change their internet dial-up settings.

The rogue software, which is often installed automatically when a consumer visits a suspect website, redirects a computer's dial-up settings to re-route phone calls through foreign locations.

The fraudster can then claim a portion of the cost of this telephone call, which is usually charged at rates of up to €5 per minute instead of the typical charge of one to five cents.

The most common type of websites which use auto dialler programmes are adult sites or unofficial music download sites, which use it as an alternative payment method to credit cards.

The fraudsters generally base their "modem hijacking" operations in foreign locations where it is notoriously difficult to pursue the culprits in the courts.

To combat the growing threat posed by the fraudsters, ComReg issued a paper yesterday proposing to block direct dial telephone access to the 14 countries most associated with the fraud.

The 14 countries targeted by ComReg include Norfolk Island, Cook Island, Nauru, Tuvalu, Solomon Islands, Mauritania and French Polynesia.

ComReg says the destinations selected are those which the telephone firms have said represent the majority of consumer complaints.

However, it accepts that the list could grow if the fraudsters route their calls through different locations.

The proposed action may be opposed by the biggest internet service providers (ISPs) - Eircom and Esat BT - which cautioned yesterday that fraudsters would simply move to other locations.

An Eircom spokeswoman said the firm did not agree with cutting off access to the states concerned.

Eircom already went to great lengths to mitigate customers' exposure to this fraud, she added.

Esat BT said it was possible that fraudsters would simply re-route calls through alternative locations. There was also a danger that Ireland could become cut off from a large number of states.

Under the ComReg proposal, individual consumers would be able to ask their telephone company to unbar specific telephone numbers in these destinations.

In its consultation paper, ComReg notes that the proposed action may have an impact on Ireland's obligation under the General Agreement on Tariffs and Trade (GATT).

This trade agreement seeks to eliminate obstacles to world trade and maintain open telecommunications networks.

Ireland would be one of the first countries to block direct dial access to other states over the issue of auto-dialling.

However, some telecoms firms in other states have taken this action.

ComReg said it would address the issue with the relevant government departments.

Due to the urgent nature of the issue, ComReg has shortened its normal four-week period of consultation to three weeks. It said that internet service providers and telephone firms would have to act on a future direction within two weeks.