SUNNYVALE, Calif.--(BUSINESS WIRE)--March 27, 1995--Corsair Communications today announced that its PhonePrint cellular fraud control system has terminated more than one million illegal cellular calls since its first commercial deployment in Los Angeles earlier this year. The performance milestone establishes PhonePrint as the leading solution in the industry-wide fight to stem the illegal use of cellular telephone networks, now costing the cellular industry nearly $500 million per year.
The one millionth call termination mark was passed in just over two months in two cities: Los Angeles, where Corsair has commercially deployed its PhonePrint system, and New York, where it is engaged in multi-site market trials. New York and Los Angeles are generally agreed by industry experts to have the most pervasive fraud problem.
`These results from our commercial deployment and multi-site trials demonstrate PhonePrint's effectiveness in fighting the war against cellular bandits,` said Mary Ann Byrnes, president of Corsair Communications. `With a million terminations, we now have a good objective measure of how PhonePrint can significantly reduce the fraudulent use of cellular networks.`
PhonePrint is expected to have terminated 5 million calls by this fall. `Right now, we're stopping over 30,000 illegal calls every day. We expect that rate to go up dramatically as we continue to put systems in the field, both because we have more units stopping calls and because each unit becomes more efficient with larger deployments. We believe that PhonePrint will quickly be seen as the most effective way for cellular carriers to keep the bad guys from stealing their services.`
PhonePrint uses radio frequency fingerprinting technology to authenticate cellular calls, blocking fraudulent access to cellular networks in real time as they are placed. Fraud is costing cellular carriers some $1.3 million a day, or nearly $500 million a year, according to the Cellular Telephone Industry Association, and the problem is still on the rise.
Cellular bandits steal the electronic serial numbers from legitimate cellular phones and then reprogram these numbers into other cellular phones. These `clone` phones are then sold or rented, with services being charged to the legitimate owner's account. Cellular carriers currently spend millions to investigate fraud cases and catch fraudulent charges before they show up on a customer's bill.
`The industry has been working hard over the last two years to get ahead of fraud,` said Dave Daniels, director of fraud management for AirTouch Communications. `In its first months of operation, PhonePrint is proving to be extremely effective at stopping fraudulent calls before they get on the system.` Daniels said the advantage of PhonePrint's radio frequency fingerprinting approach is that `the customer doesn't have to do anything to make it work -- he doesn't have to remember any PIN numbers or go through any extra steps to place a call. It's completely transparent.`
PhonePrint uses a unique digital signal analysis technology known as radio frequency fingerprinting to measure subtle differences in the way each cellular phone transmits a signal. The system uses this measurement to distinguish a clone from the legitimate phone as a call is being placed. When PhonePrint identifies a fraudulent user, it simply denies the clone phone access to the cellular network.
Corsair is the only company to demonstrate its fraud-busting technology in the nation's largest cellular markets, on an operational scale with AirTouch Communications in Los Angeles and in extensive field trials with NYNEX Mobile Communications and Cellular One in New York.
PhonePrint's radio frequency fingerprinting is adapted from technology pioneered by signal analysis leader TRW over the past 30 years for government applications. Corsair Communications was founded last December, when a group of venture capital firms, led by Kleiner Perkins Caufield & Byers and Sevin Rosen Funds, acquired a controlling interest in the PhonePrint business from TRW's Avionics & Surveillance Group. Founded in 1994, Corsair Communications develops and provides technology-intensive application solutions to the wireless telecommunications industry.
CONTACT: Corsair Communications
Bill Taliaferro, 408/752-2686
INDUSTRY KEYWORD: TELECOMMUNICATIONS COMED REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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