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Officials Warn of Big Losses Due to Cellular Phone Fraud

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From Reuters

The illegal cloning of cellular telephones is on the rise, costing the public and industry more than $400 million a year in lost billing charges, officials say.

“The cloning of phones is also connected to other illicit crime areas, such as drug dealing,” deputy police inspector William Gardella said during a news conference Wednesday at New York Police Headquarters that was also attended by cellular phone industry officials.

Cloning is widespread, particularly in New York, Miami and Los Angeles, he said, adding that arrests are made every day across the country. The illegal calls, from clones that have been given identification codes from legitimate phones, are to the Middle East, South America, Russia, Armenia and Colombia, police said.

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Officials said customers should contact their cellular carrier if they get “a dropped call, a quick busy or a repeated problem.”

The cloned phone is only used for a 30-day billing period. “Once the bill comes in, it’s revealed to the owner . . . that illicit phone calls made,” said Tom McClure, director of fraud management for Cellular Telecommunications Industry Associates, which he said lost $400 million last year.

Cellular officials suggested customers get a Personal Identification Number code from their carrier.

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