Thursday, June 08, 2006

Feds Bust Major VoIP Scam

Duo made millions off of hacked VoIP deal

The New York Times is running an interesting story on two men who operated an Internet voice scheme that netted them more than a million in connection fees. It began with the men starting two smaller VoIP companies, and buying wholesale voice access.
"Instead of buying access to other networks to connect his clients' calls, Mr. Pena paid about $20,000 to Robert Moore, the man arrested in Spokane, to create "what amounted to 'free' routes by surreptitiously hacking into the computer networks" of unwitting Internet phone providers, and then routing his customers' calls over those providers' systems, according to the federal complaint.
The scam left more than 15 Internet phone companies with connectivity bills up to $300,000 each, without any revenue to show for it.