New York Sen. Charles Schumer spoke in Syracuse last week to warn residents and business owners about a phone-hacking ring affecting local businesses that may be linked to al-Qaeda.

The scam has already targeted approximately 26 small businesses’ phone systems in New York, and cost the companies hundreds of thousands of dollars, according to a Jan. 7 press release on Schumer’s website.

“Already, dozens of New York small businesses have fallen prey to these hackers through their voicemail systems, and are often forced to cover the cost for weeks-worth of overseas calls,” Schumer said in the release.

Reports that the hackers have links to al-Qaeda have not been confirmed, according to the release.

Onondaga County First Assistant District Attorney Rick Trunfio and the Onondaga County Sheriff’s Office accompanied Schumer at the press conference, according to the release.

Trunfio said in the release that the police reports in recent months involving the phone hackings have indicated links to a broader phone hacking scam connected to al-Qaeda cells in Somalia and the Philippines.

William Banks, a public administration and international affairs and law professor, said phone hacking is a tool that is commonly used for the fundraising of criminal activity.

“Hacking is endemic, of course, and culprits range from young kids to organized criminals to terrorists trying to raise funds for their activities,” he said.

Schumer said this fraud has occurred repeatedly because hackers discovered a loophole in phone lines’ voicemail system and use the lines to make long-distance calls that can cost thousands of dollars.

He said he urges Syracuse’s small-business owners to create complex voicemail passwords and to change those passwords frequently. Business owners should also report any suspicious charges more than $50, he said.

Schumer noted in the release that the hacking scam has already directly affected Syracuse business. Best Cleaners, a dry cleaning company in Albany, put plans to expand to Syracuse on hold because of the cost of the scam. The company received a $150,000 bill for about 9,000 international calls.

Schumer said he will encourage phone companies and the Federal Communications Commission to consider regulations in relation to this activity.

Unlike credit card companies, which often take action after detecting fraudulent charges, phone companies lack the procedure to detect fraud and prevent their customers from reaping the consequences of hacking, Schumer said.

“The telecom industry and the Federal Communications Commission must do more to detect these fraudsters, to stop or prevent the deceptive charges as quickly as possible, and to protect small business owners from the financial impact,” Schumer said in the release. “These criminals must be held accountable, and we need all hands on deck to protect Syracuse business owners.”

Published on January 15, 2013 at 11:00 pm

Contact Alexandra: adhitzle@syr.edu | @LexieHitzler