The twin evil called Call masking and Subscriber Identity Module (SIM) boxing, has robbed Mobile Network Operators (MNOs) of millions of naira in recent times.
According to Infosys BPM, SIM boxing became a serious threat in the advent of the COVID-19 pandemic, where many workers were asked to work from home. „Global communications businesses proliferated in the pandemic years with the rise of work from home (WFH). At the same time, businesses suffered from rising fraud management cases as newer and more complex methods of fraudulent activities robbed telecom corporations of billions of dollars.
“Such frauds have not only dented businesses financially but have also caused a loss of reputation and trust, triggering customer churn. In its latest Fraud Loss Survey report, the Communications Fraud Control Association shows an estimated global fraud loss in the telecom industry at $39.89 billion – about 2.22 percent of the total global revenue from this industry. SIM box fraud features among the top telecom scams in the past few years,” it disclosed.
The Fraud Loss Survey Report 2021 has pegged losses from SIM box fraud and the broader interconnect bypass fraud at $3.11 billion, or 7.8 percent of global telecom fraud losses.
In Nigeria, it was estimated to cost the country over $3 billion. When the issue was first brought to the front burners about seven years ago, operators lamented that they were losing about 2.5 million minutes per day to the activities of the fraudsters.
The Nigerian Communications Commission (NCC) said the practice began sometime in 2016 when it reviewed and implemented the termination rate for international inbound traffic from N3.9 per minute to N24.4 per minute.
The Commission argued that some unscrupulous elements were bent on fraudulently profiting from the earlier lopsidedness in the international termination rate that existed before 2016.
According to the report, virtually all operators lose between 500 minutes and 2.5 million minutes to call masking.
What then is SIM boxing? A Nigerian researcher, Suleiman Bala Bakori, defined SIM boxing happens when a person uses special equipment, what is called a SIM Box containing tens to hundreds of SIM Cards—from 32 to 96, to 512 and more SIMs —to terminate international calls by bringing in the international call into the SIM Box using internet connections and regenerating the calls to the called party from one of the hundred SIMs in the box.
This way, the called party will see the local number of the SIM from the SIM Box, and not the original international number calling, Bakori said, adding, „If you have ever received an international call but saw a local phone number ring in, that is SIM Boxing in action.“
With SIM Boxes, the syndicate charges international call carriers lower rates than what regular Nigerian telecommunications operators would charge, as they do not have to pay the full cost of maintaining and operating a phone network, the researcher said, while explaining that basically, they are bypassing the normal route for international phone call termination to terminate international calls cheaply and making windfall profits off it.
Explaining further, he said, “For instance, a telecommunications operator in Nigeria would ordinarily charge international carriers 10 cents per minute for terminating an international call in Nigeria. However, by routing the call through a SIM Boxing syndicate, the international telecommunications carrier only pays a fraction of the charge to the syndicate, say 5 cents per minute, and does not have to pay the full 10 cents per minute charge.
The SIM Boxer will terminate this call to the called subscriber at a rate of, say N15 per minute using one of the SIM cards in their SIM Box. The SIM Boxer thus makes a killing from the differential between the rate charged to the international carrier and the rate paid to telecommunications operators whose SIM they utilise in their SIM Boxes, at the expense of our national security and income of mobile network operators and quality of our service to consumers.”
Aside from the revenue loss that local mobile network operators suffer courtesy of the activities of these syndicates, Bakori averred that networks face congestion around areas where illegal call routings via SIM Boxing occur. With the huge traffic from the boxes, callers around the area see more dropped calls, poor call quality, and slower data speeds, he lamented.
NIN-SIM Linkage, a silver bullet:
Meanwhile, the introduction of the linking of National Identity Numbers (NIN) to SIMs is one way the federal government has worked to tackle call masking and SIM boxing.
With every SIM in the country being linked to an NIN, an identity is tied to the owner of each line, and regulators now have visibility of ownership, Bakori said, adding “That is not all. There is also the “Max-4 Rule” where a subscriber is not allowed to have more than four lines per network operator linked to his NIN. With this rule in place, coupled with the NIN-SIM Linkage, every telephone subscriber in Nigeria would not just be accurately identifiable but limited to having only four telephone lines per subscriber.“
To enforce this rule, the Nigerian Communications Commission (NCC) on the 29th of March 2024 announced the deadline for Mobile Network Operators to bar all subscribers who had five lines and above, and whose NIN failed the verification test of biometrics matching.
Over the last few weeks, sources within the NCC have confirmed cases where a single NIN was linked to over 100,000 lines. Some NINs had well over 10,000 SIMS linked to them, others over a thousand, and others had hundreds. Many have questioned the reports and asked, what would any single reasonable person be doing with this number of lines? Justifiable questions, because no sane person—who is not running a business—should own more than five SIM cards.
Given the ‘Max 4 Rule’ in place and the NIN-SIM Linkage Policy, SIM Boxers have been boxed into a corner. The applications they use require tens to thousands of SIM Cards, and the imperative to stay anonymous. If these policies are well and fully implemented, this is the death knell for SIM Boxing merchants,” the researcher assured.
Already, the battle seems to have kicked off. A lawyer, Barrister Olukoya Ogunbeje has recently taken the Federal Government, NCC, and Mobile Network Operators to court, claiming that the barring of SIMs not linked to NINs goes against his fundamental human rights, and has cost him the loss of business opportunities. Anyone who has Nigeria’s interest at heart ordinarily supports this policy. It then does not add up seeing a so-called activist lawyer take up such a matter that is clearly against the public interest—unless this is the Haka cry of SIM Boxers.
A most interesting observation with his case is that it is not even a class action, but individually driven. It begs the question then, who is funding Barrister Olukoya Ogungbeje? What is his interest in fighting this policy that puts paid to the business of a criminal enterprise? Is he funded by interests in the SIM Boxing world? Time would tell.” he asserted.
But in the meantime, Bakori advised the regulator, NCC, to be fast and ready for the battle ahead, as SIM Boxing is a billion-dollar criminal enterprise, Bakori advised, adding, „They are not going to go down without a fight. It is like taking a bone being chewed from the mouth of a bulldog. NCC must go head-on without fear or intimation and clean the Augean stable of SIM ownership in Nigeria.”
