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White Paper                                               www.srustimobile.com




    Srusti Mobile




              Mobiles And
              Risks
              A case study on uses of mobile phones and
              various mobile scams


              September 2008
Mobiles and Risks
www.srustimobile.com




          Mobiles and
          Risks
          Contents – September 2008



          Section 1: Background                                              3
          1.1 Mobile Phone Penetration                                       4
          1.2 Text Messaging                                                 4

          Section 2: Mobile Scams                                           5
          2.1 Introduction                                                  6
          2.2 SMS SPAM                                                      6
          2.3 Not all SMS advertising is SPAM                               6
          2.4 How the SCAMS work                                             8
          2.5 Mobile Phone viruses                                          10
          2.6 Conclusion                                                    10




 September 2008                                 Contents – Mobile Phones and Risks
White Paper
www.srustimobile.com




                   SECTION 1:
                   Background




                                Srusti Mobile
                                a mobile VAS Company
Mobile Phones and Risks
www.srustimobile.com


          1.1. Mobile Penetration


          Worldwide mobile penetration rates are expected to reach as high as 95
          per cent by 2013
          from the current
          level of 46 per cent.
          Mobile penetration
          levels have already
          exceeded 100 per
          cent in developed
          countries such as
          the UK, but global
          levels      are  still
          relatively low.




          The advent of the mobile phone revolution has brought many benefits not
          least of all to parents who found added peace of mind from being able to
          arm their children with a means of keeping in regular touch. But it must
                                          be alarming to find that the devices they
            Today a head-teacher at       hoped would make their children safer
            a major secondary             can be used against them. The misuse of
            school in Edinburgh           mobile phones and computers by children
            claims that 99 per cent of has long been a growing concern. But
            bullying at his school is     while it is relatively simple to install
            now carried out through       safeguards on home computers and
            mobile phones and             laptops to prevent youngsters accessing
            internet chatrooms.           unsuitable     sites   and    chatrooms,
                                          regulating their use of mobile phones is
          far more difficult. And as the technology and access to new services
          improves it becomes impossible for many parents to keep track of how
          phones are being used or misused.

          Parents are often torn between their love of instant access to their
          children and their loathing of others' having the same.




 September 2008                                Contents – Mobile Phones and Risks
Mobile Phones and Risks
www.srustimobile.com


          Cyber-bullying is a growing problem in American schools. The term
          “cyberbully” refers to young people who use cell phones and other digital
          devices to harass other students. The bullies’ tools are text and photos
          that embarrass and unnerve kids.

          Such behavior is sadly an unwelcome by-product of advances in
          technology misused by inadequate youngsters who now have an easier
          way of taking out their frustrations on others. ‘RespectMe’, the Scottish
          Executive's new anti-bullying arm, fears in some cases that those
          tormented could develop problems such as eating disorders and consider
          self-harm as a result of being targeted.


          1.2. Text Messaging

          Millions of mobile phone users worldwide        quot;The act of texting
          have used text messaging to vote for their      automatically removes
          favorite contestants. Many teenagers prefer     10 IQ points,quot; said Paul
          them to actually talking.                       Saffo, a technology
                                                          trend forecaster in
          Almost overnight, text messages have            Silicon Valley
          become    the     preferred      form of
          communication for millions of people.

                                          But even as industry calculations show that
           Many Parents have              people are now using mobile phones to
           moved to limit the             send or receive more text messages than
           hours that their               phone calls, those messages are coming
           children may get and           under increasing fire because of the danger
           send text messages -           they can pose by distracting those who
           New York Times                 send them. Though there are no official
                                          casualty statistics, there is much anecdotal
          evidence that the number of fatal accidents stemming from texting while
          driving, crossing the street or other activities is on the rise.




 September 2008                                 Contents – Mobile Phones and Risks
White Paper
www.srustimobile.com




                   SECTION 2:
                   Mobile SCAMS




                                  Srusti Mobile
                                  a mobile VAS Company
Mobile Phones and Risks
www.srustimobile.com


          2.1. Introduction


          Using a mobile phone to send and receive text messages and/or images,
          is very similar to using e-mail or instant messaging and some of the same
          safety rules apply. Your mobile phone can be a direct link between you
          and spammers, scammers, identity thieves, online predators and cyber-
          bullies. In the following pages we discuss how it is affecting daily lives of
          people.



          2.2. SMS Spam


          SMS messaging is getting more and more popular, with the billions of
          text messages sent each year increasing steadily, the sector is soon to
          become the largest form of communication, far outstripping e-mail and
          snail mail. With such enormous popularity the marketers were bound to
          catch on eventually to instantly and cheaply reach huge numbers of
          people, and indeed they have.



          2.3. Not all SMS advertising is spam


          The growth of commercial SMS messages is exponential, with legitimate
          companies using them for all kinds of purposes, including recruitment
          and publicity.

          The use of SMS messaging for marketing is obviously an attraction to
          businesses because it is cheaper than standard snail mail marketing,
          which often lands up in most people's waste paper bins, whereas SMS
          messages have to be read. In a similar way as e-mail advertising it
          requires very little infrastructure and organisation at the sending end,
          unlike postal based services.

          There are two kinds of commercial SMS messages, solicited and
          unsolicited, if they are solicited messages you selected to receive them
          and they can be a valuable tool for you, bringing information when and
          where you want it. If they are unsolicited they can be a nuisance, cost
          you money and lead to a host of problems. Until companies start to

 September 2008                                  Contents – Mobile Phones and Risks
Mobile Phones and Risks
www.srustimobile.com



        realize their obligations and enforce the rules it seems unlikely that there
        will be an easy way to stop SMS SPAM with the exception blocking SMS
        messages to your phone completely, or complaining directly to
        companies about their unethical advertising. Both Sainsbury's Mobile and
        Virgin Wines in the UK were forced to offer public apologies after trusting
        a disreputable marketing company who then sent out unsolicited
        communications on their behalf - and if recipients had not complained
        then they would not even have known.

        The SMS marketplace does not just offer employment for spammers -
        con artists can find a home there too. They will text you with notifications
        of prizes and offers - all designed to defraud you in some way.

        Some scammers will even have the audacity to approach you in public,
        ask to use your cell phone for an quot;emergencyquot; and then dial a premium
        rate number that they are profiting from.



        2.4. How the scams work


        More and more mobile networks are offering reverse charge SMS
        services that let a user be charged up to several pounds for incoming
        SMS messages. The idea is to let their users make very small payments,
        called micro payments, for services with their mobile quickly and easily.
        To authenticate the system, and before a charged message can be sent,
        a certain message must be sent to a network 'short code', a telephone
        number consisting of just 4 digits which can only be accessed on that
        particular network. The con artists will do anything to get you to send a
        message to this number, including sending sexy messages that pretend
        to be from a girlfriend, or urgent messages claiming that a loved one is
        sick. They play on the same human weaknesses that made the Melissa
        and Love Bug viruses so successful. As soon as you have sent the
        authentication to them they are free to send you as many messages as
        they like, costing over a pound each.




September 2008                                Contents – Mobile Phones and Risks
Mobile Phones and Risks
www.srustimobile.com



        Of course as soon as a network has proof that such a scam is operating
        they close it down, but in the meantime many innocent users have been
        duped out of money, and whilst the problem is bad for pay as you go
        users, who may loose al the credit on their phone, for contract users with
        no spending limits in place the problem can be horrendous.

        Again there is no way to stop getting these scam messages without
        blocking all SMS messages coming to your phone, or moving to a
        network with no reverse charge system in place. If neither of these ideas
        seems attractive to you then be careful to check the number that the
        message came from before hitting reply on your handset.

        Never reply to text messages from people you don’t know because the
        message could be SMS SPAM, a phone virus or it could be from a
        predator or bully who has obtained your number from someone else or
        has quot;guessedquot; your number. Some SMS SPAM messages involve
        responding to a number that, when called, charges the users account
        extortionate amounts. Instead, block the caller, which prevents them from
        being able to call or send messages to your phone.

        If someone approaches you in the street and asks to use your phone
        (even if they say it is an emergency) direct them to the nearest public
        phone or, in the case of an obvious emergency, dial 911 (or whatever
        your regional emergency number is) for them. Do not allow the to use
        your phone because they may either be trying to steal your phone or,
        they may be a scammer who uses your phone to dial a premium rate
        number that charges your phone account. They profit from the call and
        you are left with a hefty bill.




September 2008                               Contents – Mobile Phones and Risks
Mobile Phones and Risks
www.srustimobile.com


        2.5. Mobile phone viruses


        Online virus warnings about e-mail worms and trojans are familiar
        enough and they are something that mobile phone users are also going
        to have to consider.

        We have looked at cell phone scams and SPAM and, just as we can see
        evidence of the same junk that appears in our Inbox, we can expect
        mobile viruses to be the next step.

        It is only a matter of time. There are already viruses for the pocket PC
        and palm operating system 'in the wild' and the problem is bad enough
        that a virus checker, pc-cillan, has been adapted to work on mobile
        devices. Without a doubt these viruses will be adapted to work on the
        next generation of phones, and with the rise of always on data solutions
        to next generation phones, like GPRS and UTMS, the exposure
        presented to crackers is getting larger.

        These problems however are being tackled at the network end, with
        firewall implementation from the networks, but it remains to see how big a
        problem it will be. Sensible use, the same as you would apply to e-mail
        and your computer will soon have to apply to mobile phones, and as
        always how exposed you are depends on the decisions you make.



        2.6. Conclusion


        SafMobileTM can help to eliminate the unnecessary calls, SMSs, MMSs
        even filter which websites your child is allowed or denied to access from
        mobile phone. Simply active parental mode only approved calls (i.e. calls
        from numbers in you approve are valid and you trust them to call your
        child and your chilled is allowed to call them). Every other call, SMS and
        MMS will be blocked. You can even filter websites that your child is
        allowed to visit using advanced content filtering.

        Life can be little bit peaceful with Srusti Mobile’s SafMobileTM.




September 2008                               Contents – Mobile Phones and Risks
This White Paper Discusses:


       • The penetration of mobile phones in our lives.

       • How various Mobile SCAMS work.

       • How an ordinary man is venerable to the modern day Mobile Marketing.

       • How the children are adopting the Mobiles more rapidly then adults.

       • How to protect your child from misadventures.




Srusti Mobile
                                                                                                Reaching Beyond Limits
a mobile VAS Company

Headquarters:                              Development Office:               Administration Office (Ireland):
Srusti Mobile Pvt. Ltd.#774 First Floor,   Srusti Mobile Pvt. Ltd., #230A,   Srusti Mobile Pvt. Ltd., #114,
  nd           nd
                                           22nd A cross, 18th mail,
22 cross, 22 main                                                            Shelmartin Avenue, Fairview,
 nd
                                           3rd sector ,HSR layout,
2 sector, HSR Layout,                                                        Dublin – 3 , Co. Dublin
Bangalore-560034, India                    Banglaore-560034, India           Ireland

Tel: +44 (0)1482 586149                    Tel: +61 (02) 8705 6960           Tel: +1 212 652 5302
Fax: +44 (0)1482 323577                    Fax: +61 (02) 8705 6961           Fax: +1 212 202 4684

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Mrisks

  • 1. White Paper www.srustimobile.com Srusti Mobile Mobiles And Risks A case study on uses of mobile phones and various mobile scams September 2008
  • 2. Mobiles and Risks www.srustimobile.com Mobiles and Risks Contents – September 2008 Section 1: Background 3 1.1 Mobile Phone Penetration 4 1.2 Text Messaging 4 Section 2: Mobile Scams 5 2.1 Introduction 6 2.2 SMS SPAM 6 2.3 Not all SMS advertising is SPAM 6 2.4 How the SCAMS work 8 2.5 Mobile Phone viruses 10 2.6 Conclusion 10 September 2008 Contents – Mobile Phones and Risks
  • 3. White Paper www.srustimobile.com SECTION 1: Background Srusti Mobile a mobile VAS Company
  • 4. Mobile Phones and Risks www.srustimobile.com 1.1. Mobile Penetration Worldwide mobile penetration rates are expected to reach as high as 95 per cent by 2013 from the current level of 46 per cent. Mobile penetration levels have already exceeded 100 per cent in developed countries such as the UK, but global levels are still relatively low. The advent of the mobile phone revolution has brought many benefits not least of all to parents who found added peace of mind from being able to arm their children with a means of keeping in regular touch. But it must be alarming to find that the devices they Today a head-teacher at hoped would make their children safer a major secondary can be used against them. The misuse of school in Edinburgh mobile phones and computers by children claims that 99 per cent of has long been a growing concern. But bullying at his school is while it is relatively simple to install now carried out through safeguards on home computers and mobile phones and laptops to prevent youngsters accessing internet chatrooms. unsuitable sites and chatrooms, regulating their use of mobile phones is far more difficult. And as the technology and access to new services improves it becomes impossible for many parents to keep track of how phones are being used or misused. Parents are often torn between their love of instant access to their children and their loathing of others' having the same. September 2008 Contents – Mobile Phones and Risks
  • 5. Mobile Phones and Risks www.srustimobile.com Cyber-bullying is a growing problem in American schools. The term “cyberbully” refers to young people who use cell phones and other digital devices to harass other students. The bullies’ tools are text and photos that embarrass and unnerve kids. Such behavior is sadly an unwelcome by-product of advances in technology misused by inadequate youngsters who now have an easier way of taking out their frustrations on others. ‘RespectMe’, the Scottish Executive's new anti-bullying arm, fears in some cases that those tormented could develop problems such as eating disorders and consider self-harm as a result of being targeted. 1.2. Text Messaging Millions of mobile phone users worldwide quot;The act of texting have used text messaging to vote for their automatically removes favorite contestants. Many teenagers prefer 10 IQ points,quot; said Paul them to actually talking. Saffo, a technology trend forecaster in Almost overnight, text messages have Silicon Valley become the preferred form of communication for millions of people. But even as industry calculations show that Many Parents have people are now using mobile phones to moved to limit the send or receive more text messages than hours that their phone calls, those messages are coming children may get and under increasing fire because of the danger send text messages - they can pose by distracting those who New York Times send them. Though there are no official casualty statistics, there is much anecdotal evidence that the number of fatal accidents stemming from texting while driving, crossing the street or other activities is on the rise. September 2008 Contents – Mobile Phones and Risks
  • 6. White Paper www.srustimobile.com SECTION 2: Mobile SCAMS Srusti Mobile a mobile VAS Company
  • 7. Mobile Phones and Risks www.srustimobile.com 2.1. Introduction Using a mobile phone to send and receive text messages and/or images, is very similar to using e-mail or instant messaging and some of the same safety rules apply. Your mobile phone can be a direct link between you and spammers, scammers, identity thieves, online predators and cyber- bullies. In the following pages we discuss how it is affecting daily lives of people. 2.2. SMS Spam SMS messaging is getting more and more popular, with the billions of text messages sent each year increasing steadily, the sector is soon to become the largest form of communication, far outstripping e-mail and snail mail. With such enormous popularity the marketers were bound to catch on eventually to instantly and cheaply reach huge numbers of people, and indeed they have. 2.3. Not all SMS advertising is spam The growth of commercial SMS messages is exponential, with legitimate companies using them for all kinds of purposes, including recruitment and publicity. The use of SMS messaging for marketing is obviously an attraction to businesses because it is cheaper than standard snail mail marketing, which often lands up in most people's waste paper bins, whereas SMS messages have to be read. In a similar way as e-mail advertising it requires very little infrastructure and organisation at the sending end, unlike postal based services. There are two kinds of commercial SMS messages, solicited and unsolicited, if they are solicited messages you selected to receive them and they can be a valuable tool for you, bringing information when and where you want it. If they are unsolicited they can be a nuisance, cost you money and lead to a host of problems. Until companies start to September 2008 Contents – Mobile Phones and Risks
  • 8. Mobile Phones and Risks www.srustimobile.com realize their obligations and enforce the rules it seems unlikely that there will be an easy way to stop SMS SPAM with the exception blocking SMS messages to your phone completely, or complaining directly to companies about their unethical advertising. Both Sainsbury's Mobile and Virgin Wines in the UK were forced to offer public apologies after trusting a disreputable marketing company who then sent out unsolicited communications on their behalf - and if recipients had not complained then they would not even have known. The SMS marketplace does not just offer employment for spammers - con artists can find a home there too. They will text you with notifications of prizes and offers - all designed to defraud you in some way. Some scammers will even have the audacity to approach you in public, ask to use your cell phone for an quot;emergencyquot; and then dial a premium rate number that they are profiting from. 2.4. How the scams work More and more mobile networks are offering reverse charge SMS services that let a user be charged up to several pounds for incoming SMS messages. The idea is to let their users make very small payments, called micro payments, for services with their mobile quickly and easily. To authenticate the system, and before a charged message can be sent, a certain message must be sent to a network 'short code', a telephone number consisting of just 4 digits which can only be accessed on that particular network. The con artists will do anything to get you to send a message to this number, including sending sexy messages that pretend to be from a girlfriend, or urgent messages claiming that a loved one is sick. They play on the same human weaknesses that made the Melissa and Love Bug viruses so successful. As soon as you have sent the authentication to them they are free to send you as many messages as they like, costing over a pound each. September 2008 Contents – Mobile Phones and Risks
  • 9. Mobile Phones and Risks www.srustimobile.com Of course as soon as a network has proof that such a scam is operating they close it down, but in the meantime many innocent users have been duped out of money, and whilst the problem is bad for pay as you go users, who may loose al the credit on their phone, for contract users with no spending limits in place the problem can be horrendous. Again there is no way to stop getting these scam messages without blocking all SMS messages coming to your phone, or moving to a network with no reverse charge system in place. If neither of these ideas seems attractive to you then be careful to check the number that the message came from before hitting reply on your handset. Never reply to text messages from people you don’t know because the message could be SMS SPAM, a phone virus or it could be from a predator or bully who has obtained your number from someone else or has quot;guessedquot; your number. Some SMS SPAM messages involve responding to a number that, when called, charges the users account extortionate amounts. Instead, block the caller, which prevents them from being able to call or send messages to your phone. If someone approaches you in the street and asks to use your phone (even if they say it is an emergency) direct them to the nearest public phone or, in the case of an obvious emergency, dial 911 (or whatever your regional emergency number is) for them. Do not allow the to use your phone because they may either be trying to steal your phone or, they may be a scammer who uses your phone to dial a premium rate number that charges your phone account. They profit from the call and you are left with a hefty bill. September 2008 Contents – Mobile Phones and Risks
  • 10. Mobile Phones and Risks www.srustimobile.com 2.5. Mobile phone viruses Online virus warnings about e-mail worms and trojans are familiar enough and they are something that mobile phone users are also going to have to consider. We have looked at cell phone scams and SPAM and, just as we can see evidence of the same junk that appears in our Inbox, we can expect mobile viruses to be the next step. It is only a matter of time. There are already viruses for the pocket PC and palm operating system 'in the wild' and the problem is bad enough that a virus checker, pc-cillan, has been adapted to work on mobile devices. Without a doubt these viruses will be adapted to work on the next generation of phones, and with the rise of always on data solutions to next generation phones, like GPRS and UTMS, the exposure presented to crackers is getting larger. These problems however are being tackled at the network end, with firewall implementation from the networks, but it remains to see how big a problem it will be. Sensible use, the same as you would apply to e-mail and your computer will soon have to apply to mobile phones, and as always how exposed you are depends on the decisions you make. 2.6. Conclusion SafMobileTM can help to eliminate the unnecessary calls, SMSs, MMSs even filter which websites your child is allowed or denied to access from mobile phone. Simply active parental mode only approved calls (i.e. calls from numbers in you approve are valid and you trust them to call your child and your chilled is allowed to call them). Every other call, SMS and MMS will be blocked. You can even filter websites that your child is allowed to visit using advanced content filtering. Life can be little bit peaceful with Srusti Mobile’s SafMobileTM. September 2008 Contents – Mobile Phones and Risks
  • 11. This White Paper Discusses: • The penetration of mobile phones in our lives. • How various Mobile SCAMS work. • How an ordinary man is venerable to the modern day Mobile Marketing. • How the children are adopting the Mobiles more rapidly then adults. • How to protect your child from misadventures. Srusti Mobile Reaching Beyond Limits a mobile VAS Company Headquarters: Development Office: Administration Office (Ireland): Srusti Mobile Pvt. Ltd.#774 First Floor, Srusti Mobile Pvt. Ltd., #230A, Srusti Mobile Pvt. Ltd., #114, nd nd 22nd A cross, 18th mail, 22 cross, 22 main Shelmartin Avenue, Fairview, nd 3rd sector ,HSR layout, 2 sector, HSR Layout, Dublin – 3 , Co. Dublin Bangalore-560034, India Banglaore-560034, India Ireland Tel: +44 (0)1482 586149 Tel: +61 (02) 8705 6960 Tel: +1 212 652 5302 Fax: +44 (0)1482 323577 Fax: +61 (02) 8705 6961 Fax: +1 212 202 4684