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CHAPTER 14 Security and Fraud Detection in Mobile and Wireless Networks

The fusion of computer and telecommunication technologies has heralded the age of information superhighway over wireline and wireless networks. Mobile cellular communication systems and wireless networking technologies are growing at an ever-faster rate, and this is likely to continue in the foreseeable future. Wireless technology is presently being used to link portable computer equipment to corporate distributed computing and other sources of necessary information. Wide-area cellular systems and wireless LANs promise to make integrated networks a reality and provide fully distributed and ubiquitous mobile communications, thus bringing an end to the tyranny of geography. Higher reliability, better coverage and services, higher capacity, mobility management, power and complexity for channel acquisition, handover decisions, security management, and wireless multimedia are all parts of the potpourri. Further increases in network security are necessary before the promise of mobile telecommunication can be fulfilled. Safety and security management against fraud, intrusions, and cloned mobile phones, just to mention a few, will be one of the major issues in the next wireless and mobile generations. A “safe” system provides protection against errors of trusted users, whereas a “secure” system protects against errors introduced by impostors and untrusted users [1]. Therefore, rather than ignoring the security concerns of potential users, merchants, and telecommunication companies need to acknowledge these concerns and deal with them in a straightforward manner. Indeed, in order to convince the public to use mobile and wireless technology in the next and future generations of wireless systems, telecom companies and all organizations will need to explain how they have addressed the security of their mobile/wireless systems. Manufacturers, M-business, service providers, and entrepreneurs who can visualize this monumental change and effectively leverage their experiences on both wireless and Internet will stand to benefit from it. Concerns about network security in general (mobile and wired) are growing, and so is research to match these growing concerns. Indeed, since the seminal work by D. Denning [9] in 1981, many intrusion-detection prototypes, for instance, have been created. Intrusion-detection systems aim at detecting attacks against computer systems and wired net-