New evidence reveals
widespread airtime theft and fraudulent WASP subscriptions on Vodacom’s network
and shows that the company failed to act decisively against the criminals.
The latest evidence follows
an industry investigation which revealed airtime
theft on a mass scale from Vodacom’s prepaid customers.
What sets the latest
evidence apart is that it comes from a prominent company which uses
machine-to-machine communications and IoT devices with prepaid SIMs from
Vodacom.
It is therefore impossible
for these SIMs to pro-actively subscribe to WASP services, which means this
data provides conclusive evidence of fraudulent subscriptions and airtime
theft.
The company’s chief
executive, who asked to remain anonymous because of his relationship with
Vodacom, told MyBroadband hundreds of their SIMs have been hit by airtime theft.
The company experienced
theft on both brand-new SIMs and SIMs which have been in devices for years.
He said Vodacom refuses to
acknowledge any problem and added that it is very difficult to get refunds for
the stolen airtime.
Only around 5% to 10% of
the airtime theft which they logged with Vodacom were refunded.
He said it requires
considerable effort to get a refund, which is further complicated as it is
impossible to approach Vodacom with a list of SIMs from which airtime was
stolen.
“You need to phone in as a
single prepaid customer and go through the motions of trying to convince them
that the SIM is in a device with no human access,” he said.
“You have to hound them
repeatedly to get the refund to be processed, and you often just give up after
a while.”
The evidence further showed
that the same WASPs continue to steal airtime from SIMs long after it was
reported to Vodacom.
The data provided to
MyBroadband stretches back for many months and conclusively proves:
- There
is widespread fraud and airtime theft on Vodacom’s network to this day.
- Vodacom
was made aware of this fraud and airtime theft, for a long time, but
failed to act decisively.
- The
same companies continue to steal airtime from Vodacom’s subscribers.
A look at the data
The data in the table below
are all from prepaid Vodacom SIMs installed in machine-to-machine and IoT
units.
“There’s no way anyone has
pulled out the SIM and subscribed to anything. We even detect and log when a
SIM is removed from the device,” the CEO said.
Prepaid SIMs do not get
invoices, but the company has developed its own logging mechanism which records
airtime changes and subscriptions.
Through this platform each
SIM’s airtime is checked regularly through USSD commands.
The company also
continually runs USSD commands to query if there are any subscriptions.
If an illegal subscription
is detected, the name is logged, and the service is removed using a USSD
command.
He said most of the
subscriptions are detected before significant losses are incurred, but
occasionally they catch one that has R100 or more stolen.
The table below shows some
of the airtime theft detected on hundreds of SIMs over the past two months
alone.
It should be noted that
this is only a small sample of the true extend of the fraud.
Airtime theft on M2M SIMs
|
Detected Date
|
Estimated loss per SIM
|
Subscription Name
|
22/08/2020 14:31
|
R2.00
|
gamingTool
|
21/08/2020 20:58
|
R21.00
|
Amapiano Jingle
|
21/08/2020 00:55
|
R18.00
|
reportME
|
19/08/2020 02:13
|
R24.00
|
Summertime
|
18/08/2020 10:18
|
R16.00
|
Ha a Mfa
|
17/08/2020 23:19
|
R15.00
|
ExploreApp
|
17/08/2020 12:05
|
R62.00
|
gamingTool
|
16/08/2020 20:36
|
R15.00
|
Monate
|
11/08/2020 00:48
|
R24.00
|
Ngikhulile
|
07/08/2020 00:57
|
R57.00
|
ExploreApp
|
27/07/2020 16:05
|
R37.00
|
BeFit
|
27/07/2020 16:05
|
R38.00
|
DOWNLOAD
|
25/07/2020 14:16
|
R41.00
|
DOWNLOAD
|
21/07/2020 18:36
|
R46.00
|
reportME
|
19/07/2020 10:38
|
R23.00
|
reportME
|
17/07/2020 06:36
|
R30.00
|
ExploreApp
|
17/07/2020 04:03
|
R7.00
|
ExploreApp
|
15/07/2020 17:56
|
R100.00
|
ExploreApp
|
13/07/2020 21:58
|
R74.00
|
ExploreApp
|
13/07/2020 00:32
|
R37.00
|
gamingTool
|
11/07/2020 12:13
|
R39.00
|
ExploreApp
|
10/07/2020 00:51
|
R14.00
|
ExploreApp
|
09/07/2020 15:50
|
R2.40
|
Doce Vida ft DJ Tarico
|
09/07/2020 11:15
|
R7.50
|
Cheers
|
07/07/2020 01:16
|
R32.00
|
RetroGame
|
06/07/2020 18:12
|
R14.00
|
Ngikhulile
|
06/07/2020 05:25
|
R13.00
|
BeFit
|
06/07/2020 05:25
|
R13.00
|
RetroGame
|
06/07/2020 05:25
|
R13.00
|
Don’t change
|
05/07/2020 00:53
|
R113.00
|
ExploreApp
|
28/06/2020 10:53
|
R53.00
|
gamingTool
|
28/06/2020 10:50
|
R21.00
|
DOWNLOAD
|
25/06/2020 12:25
|
R2.00
|
loveislove
|
23/06/2020 01:13
|
R44.00
|
BeFit
|
23/06/2020 01:13
|
R45.00
|
DOWNLOAD
|
22/06/2020 15:13
|
R30.00
|
DOWNLOAD
|
21/06/2020 23:21
|
R17.00
|
ExploreApp
|
21/06/2020 23:20
|
R28.00
|
reportME
|
21/06/2020 22:54
|
R7.00
|
reportME
|
21/06/2020 22:29
|
R35.00
|
reportME
|
19/06/2020 01:16
|
R7.00
|
reportME
|
18/06/2020 13:09
|
R35.00
|
BeFit
|
18/06/2020 13:09
|
R35.00
|
express07
|
18/06/2020 13:09
|
R36.00
|
Question
|
18/06/2020 08:38
|
R44.00
|
gamingTool
|
17/06/2020 01:22
|
R96.00
|
ExploreApp
|
16/06/2020 00:55
|
R16.00
|
reportME
|
15/06/2020 21:34
|
R35.00
|
reportME
|
15/06/2020 18:09
|
R23.00
|
reportME
|
15/06/2020 18:08
|
R42.00
|
Entertainment Content
|
15/06/2020 18:08
|
R42.00
|
DOWNLOAD
|
15/06/2020 18:08
|
R35.00
|
gamingTool
|
15/06/2020 18:08
|
R28.00
|
gamingTool
|
15/06/2020 09:00
|
R28.00
|
RetroGame
|
15/06/2020 02:28
|
R14.00
|
reportME
|
14/06/2020 13:47
|
R42.00
|
reportME
|
14/06/2020 13:47
|
R14.00
|
reportME
|
14/06/2020 00:32
|
R21.00
|
reportME
|
14/06/2020 00:25
|
R37.00
|
ExploreApp
|
13/06/2020 01:22
|
R16.00
|
reportME
|
12/06/2020 09:25
|
R21.00
|
gamingTool
|
12/06/2020 08:43
|
R14.00
|
gamingTool
|
11/06/2020 07:47
|
R86.00
|
ExploreApp
|
08/06/2020 22:55
|
R3.00
|
ExploreApp
|
08/06/2020 19:58
|
R3.00
|
ExploreApp
|
08/06/2020 19:57
|
R35.00
|
DOWNLOAD
|
08/06/2020 19:57
|
R3.00
|
bestofgames
|
08/06/2020 19:54
|
R42.00
|
RetroGame
|
08/06/2020 19:51
|
R7.00
|
reportME
|
08/06/2020 19:42
|
R26.00
|
DOWNLOAD
|
08/06/2020 19:42
|
R101.00
|
ExploreApp
|
08/06/2020 19:35
|
R28.00
|
(unknown)
|
07/06/2020 14:32
|
R42.00
|
gamingTool
|
07/06/2020 00:57
|
R119.00
|
gamingTool
|
05/06/2020 16:58
|
R21.00
|
RetroGame
|
03/06/2020 07:20
|
R4.00
|
Doce Vida ft DJ Tarico
|
03/06/2020 07:20
|
R5.00
|
Mum & Baby Premium
|
02/06/2020 22:32
|
R3.00
|
ExploreApp
|
02/06/2020 16:35
|
R111.00
|
ExploreApp
|
02/06/2020 12:29
|
R13.00
|
besstmusicapp
|
02/06/2020 01:19
|
R21.00
|
gamingTool
|
01/06/2020 18:05
|
R21.00
|
gamingTool
|
01/06/2020 17:31
|
R14.00
|
reportME
|
01/06/2020 02:16
|
R6.00
|
The only One
|
The evidence
versus what Vodacom claimed
Over the past few years
Vodacom has consistently made a few claims regarding fraudulent subscriptions
and airtime theft on its network.
- It
has a zero-tolerance approach to any illegal activity on its network and
takes a hard line against perpetrators.
- It investigates
this fraud when it becomes aware of it and suspends suspected WASPs during
this period.
- Its
standard practice is to refund the customer first and then investigate the
query later.
- It
introduced and enabled content blocking on all M2M and IoT SIMs in
December 2018, which prohibits content subscriptions and purchases such as
WASP services from these SIMs.
The evidence from this
company and from previous cases show that Vodacom’s claims are inaccurate and
misleading.
The evidence revealed that
despite having been alerted to companies stealing airtime from their
subscribers, Vodacom failed to take decisive action against them.
In some cases, companies
which have been accused of stealing airtime from Vodacom customers for years
continue to do so with impunity.
It therefore shows that
Vodacom either does not investigate accusations of airtime theft or does not
suspend suspected fraudulent WASPs during this period.
The latest evidence also
shows that it is very tough to get a refund – even in the case of M2M and IoT
SIMs.
This echoes feedback from
other Vodacom subscribers who said they also struggled to get a refund from
Vodacom.
In one of the recent
reports the victim said Vodacom first tried to
blame him and said the unwanted subscriptions were his fault.
He first had to refute
numerous false accusations from Vodacom before they were willing to process his
refund application. Even after all of this, he still did not receive a refund.
These reports fly in the
face of Vodacom’s claim that it “refunds the customer first and then
investigates the query later”.
Vodacom’s claim of content
blocking on all M2M and IoT SIMs is also brought into question by the latest
data.
All the SIMs which were
targeted were M2M and IoT SIMs, which clearly shows it is possible to steal
airtime from these SIMs through content subscription services.
This raises the question as
to why Vodacom is not stopping this fraud which has been plaguing its
subscribers for years.
Industry players told
MyBroadband that Vodacom does not want to address this fraud as they are making
millions in profit from it.
One industry player, who
has been operating a WASP for over a decade, told MyBroadband that mobile
operators are enabling this fraud and are well aware of it.
“No WASP can take a
subscriber’s airtime without the operator fully knowing about it – and enabling
it,” he said.
Another industry player
said Vodacom has always seen this as a revenue stream despite the misery caused.
“It’s criminal and should
be thoroughly investigated,” he said.
Vodacom responds
MyBroadband asked Vodacom
whether any action has been taken against WASPs implicated in airtime theft.
Vodacom said it cannot
arbitrarily take action against a commercial partner – WASPs included – without
requisite proof or evidence of a contractual breach or fraud.
“Rest assured, should we
have this information, we will ensure that appropriate measures are taken,” it
said.
Commenting on the issue of
refunds for stolen airtime, Vodacom said if it suspects that customers have
been defrauded, it will ensure that they are proactively refunded.
“Should we have proof or
evidence that customers were incorrectly debited, it follows that we will
effect refunds to customers in addition to taking appropriate measures against
fraudsters,” it said.
Commenting on the examples
that Vodacom is not refunding victims of airtime theft as promised, it said “we
cannot comment on examples that we have not had the opportunity to
investigate”.
“Our standard Customer Care
policy is to effect refunds,” Vodacom said.
“We are fully committed to
remedying instances where standard policy has not been adhered to but will
naturally need the requisite customer information to do so.”
www.vsoftsystems.co.za