Scam involving VPN in UAE: People losing money through mobile balance and app transactions

For several weeks now, UAE resident Noor Ahmed has been losing more than Dh3 every day from his post-paid mobile account. He didn't realize until receiving a message from his telecom provider that he had exceeded the credit limit.
I was shocked to receive a notification from a nearby phone company as I hadn't used up a significant amount of my remaining balance. I only use my pre-paid mobile balance to make SMS payments for parking. When I inquired with the customer service representatives of the telecom service provider at a hypermarket, I discovered that I was being billed for the VPN I had downloaded. "I uninstalled it right away," he said.

After removing the VPN app, Ahmed, who lost more than Dh200 in just one month, no longer experienced monetary losses. Ahmed was among numerous individuals who were losing money in a comparable manner.

What is the opinion of the specialists?

If a person has a harmful VPN app on their phone, it could allow scammers to access the device and make unauthorized purchases, resulting in deductions from the individual's mobile balance. Ezzeldin Hussein, regional senior director for solution engineering in META at Sentinel One, warned that a harmful VPN app could take over the device and enable scammers to buy items from app stores such as the Apple App Store or Google Play Store without the user's permission.
He mentioned that VPNs have the ability to capture sensitive information, like account credentials for app stores, by intercepting communications between the device and the internet, which scammers can exploit for unauthorized purchases.

Should the VPN app be given broad permissions, it will be able to retrieve the user's mobile balance details and carry out transactions through the mobile network's payment platform. Moreover, Hussein mentioned that certain VPN applications may secretly trigger in-app purchases, which may not be immediately recognized but can accumulate gradually.
Karthik Anandarao, the chief technical evangelist at Manage Engine, stated that mobile phones are much more susceptible to cyberattacks compared to other personal devices.

Users are typically unaware of whether the VPN is connected or not. Once the hackers successfully infiltrate a user's mobile phone, they are able to reach any application. The app from the telecommunications provider is also affected by this. Fraudsters have the capability to easily withdraw funds from pre-paid or post-paid mobile balances of users. The only thing the scammer requires is a way to get into the user's cell phone. Anandarao stated that whether a VPN is connected or not is not important.

Users remain vulnerable to hackers despite utilizing a VPN

Karthik Anandarao mentioned that simply using a VPN doesn't make individuals immune to hackers.
It is still possible to be located by tracing the VPN address. The location and IP address are the only attributes that tend to change often when connected through the VPN. The remaining data is still at risk and can be accessed by cyber attackers. Anandarao mentioned that details like bank credit card, CVV, expiration date, account info, etc. are stored in either cookies or vaults.

Stealing mobile credit

Telecom operators can detect suspicious activity and determine if scammers are taking pre-paid customers' mobile balances or making postpaid customers pay for unauthorized transactions, according to Ezzeldin Hussein.

They supervise transactions and are able to identify unusual or suspicious activities, like abrupt big purchases or numerous small transactions in a brief timeframe. By examining the common ways customers use their services, telecom companies can identify irregularities that could suggest fraudulent behavior. He stated that numerous operators utilize sophisticated fraud detection systems and algorithms to detect patterns related to scams and unauthorized transactions.

Furthermore, Hussein mentioned that feedback from customers regarding unanticipated fees or sudden decreases in mobile credit can prompt telecom companies to look into possible fraudulent behavior. Operators have the ability to examine billing records in order to detect discrepancies, such as charges for services or purchases that have not been approved by customers, and they can collaborate with app stores to monitor and confirm purchases made via their networks.

Although telecom operators have these abilities, he recommended that customers also frequently check their accounts and promptly inform them about any questionable actions. This will assist operators in promptly responding and taking required measures to avoid additional losses.

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