News Release

Bell Atlantic NYNEX Mobile See's 70% Decrease In Fraud Losses Thanks To

Aggressive Work with Law Enforcement Nets More Than 390 Arrests

March 2, 1997

CTIA WIRELESS '97 SAN FRANCISCO — The implementation of Authentication and RF Fingerprinting technology has led to significant decreases in cellular fraud for Bell Atlantic NYNEX Mobile. Since May of 1996, when the company led the industry in launching Authentication service, Bell Atlantic NYNEX Mobile has seen an overall fraud decrease of 70 percent month over month; specifically, a 74 percent decrease in home fraud and a 57 percent decrease in roaming fraud.

In addition, Bell Atlantic NYNEX Mobile works with law enforcement agencies to pursue and prosecute cloners and distributors of cloned phones and equipment. Last year, the company's efforts netted more than 390 arrests, and the recovery of more than 110,000 stolen cellular phone number/serial number combinations. The company also assists in prosecuting cellular thieves to the fullest extent of the law. One case resulted in a six year federal jail sentence and more than $97,000 in ordered restitution to Bell Atlantic NYNEX Mobile and other carriers.

"While we are extremely encouraged by the decreases we've seen, we cannot eliminate fraud on our own, especially roaming fraud," said Nick Arcuri, vice president-fraud control. "We are actively encouraging our roaming partners to join us in the fight by exchanging fraud information and by implementing solutions such as networking of authentication and RF Fingerprinting systems."

Bell Atlantic NYNEX Mobile's aggressive fraud prevention plan is based on a three-pronged approach -- prevention, detection, and prosecution.

Fraud prevention centers around implementing network solutions to stop fraud before it affects the customer. Authentication and RF Fingerprinting technology deployments are the cornerstones of this approach. Since last May, the company has rolled out Authentication and RF Fingerprinting technology in all its major markets. Nearly two million Bell Atlantic NYNEX Mobile customers are protected by Authentication and RF Fingerprinting when in the Bell Atlantic NYNEX Mobile footprint or when roaming in markets where the company has interconnected its fraud protection services with other carriers.

The second approach to fighting cellular fraud is early detection. The company's in-house fraud task force uses sophisticated fraud-detection software to alert customers and shut down cloners quickly.

Lastly, Bell Atlantic NYNEX Mobile aggressively pursues cellular cloners and dealers of stolen equipment. The company provides training, support, and assistance to local, state, and federal law enforcement officials and employs private investigation firms to jointly combat the problem.

Bell Atlantic NYNEX Mobile is the largest wireless service provider on the East Coast and the second largest in the United States. The company owns and operates the most extensive network in the east, covering 111,000 square miles, and the largest chain of wireless retail outlets offering a full range of wireless personal communications services, including voice, data and paging. Based in Bedminster, NJ, Bell Atlantic NYNEX Mobile has 4.4 million customers and 6,500 employees in the Northeast, mid-Atlantic, Southeast, and, through a separate subsidiary, in the Southwest. The company was formed in July, 1995, by combining the cellular operations of Bell Atlantic Mobile and NYNEX Mobile.

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