Computer crime: hacking and reselling Internet phone services

Date: June 08, 2006
Source: The New York Time


Federal authorities arrested one man in Miami and another in Spokane, Wash., today in connection with what they said was a hacking scheme involving the resale of Internet telephone service.

The suspects were said to have illegally tapped into the lines of legitimate Internet phone companies, saddling them with the expense of extra traffic, while collecting more than $1 million in connection fees.

The case, one of the first involving this kind of elaborate Internet phone hacking, illustrated how Internet-based communications may be criminally exploited, and raised fresh questions about the security of phone traffic over largely unregulated networks.

Prosecutors say that starting in November 2004, the man arrested in Miami — Edwin Andres Pena, 23, a Venezuelan who has permanent residency in the United States — used two companies he created to offer wholesale phone connections at discounted rates to small Internet phone companies.
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