Mergers, Acquisitions and Financial Results

The impact of fraud and related issues like vandalism impact on Telkom South Africa's financial performance emerged last week. “Telkom loses approximately R95.4 million annually on all network fraud, including direct costs to repair cable theft and sabotage,” says Telkom's media specialist, Roshelle Pillay.

“Telkom has suffered many incidents whereby fraudsters make illegal free calls, use the clip-on fraud method and physically vandalise phone booths, resulting in the company losing millions of rands annually.”

Pillay confirms that Telkom has recently been informed that in some areas in Soweto, people are fraudulently making calls from phone card public phones, using a 0800 20 30 40 number.

“At this stage we cannot confirm the extent of the misuse of the 0800 20 30 40 number or attach a monetary value to it, until a thorough investigation is completed,” says Pillay.

However, she says Telkom's security and investigation team immediately verified the misuse of the line and has suspended that number.

”Clip-on fraud is still a popular method used by fraudsters who tap into private and public lines and sell calls, some to international destinations, at a cheaper price.”

This type of fraud inconveniences Telkom customers, notes Pillay, as well as phone service customers around the world, often landing them with sudden high telephone bills.