Telephony Denial of Service (TDoS) attacks are a growing cybersecurity threat that disrupts voice communication systems by flooding them with excessive calls. These attacks typically target businesses, hospitals, and emergency services, preventing legitimate calls from getting through. One common way TDoS attacks begin is through a payday loan scam. Attackers impersonate payday lenders, tricking individuals and organizations into responding to fraudulent demands. Once they find the right target or victim, they use automated systems to launch a TDoS attack, threatening to continue flooding phone lines until they receive payment. Understanding how payday loan scams fuel TDoS attacks is crucial in developing strategies to prevent and mitigate these threats.

What are payday loan scams?

A payday loan scam is a fraudulent scheme where attackers pose as lenders or debt collectors. They place calls to a target – someone who has used a payday loan service in the past – and claim the target still owes money on a short-term loan. These scammers may use aggressive tactics to pressure victims into making immediate payments, often threatening legal action, wage garnishment, or even arrest.

Scammers typically gather phone numbers through public records, social media, or previous data breaches. Once they have a list of targets, they often use automated systems to contact individuals.

How do TDoS attacks work?

TDoS attacks make a phone system unusable by overwhelming it with high call volumes. Attackers use various techniques to execute these attacks.

  • Caller ID spoofing Attackers make calls appear to come from a trusted source, increasing the likelihood of victims answering. This makes it difficult to distinguish between legitimate and fraudulent calls, allowing the attack to continue undetected. Spoofing can circumvent some call fraud detection systems, preventing them from easily blocking the source of the attack.
  • Botnets Attackers frequently use botnets – networks of malware-infected devices that can automatically generate thousands of calls per minute to rapidly congest phone lines. These botnets are often made up of infected smartphones, computers, or even IoT devices, making it nearly impossible to stop the attack without shutting down entire systems. Since botnets operate from multiple locations worldwide, they can get around traditional security measures that rely on IP-based blocking.
  • SIP-based call generators These systems use software to make automated calls while spoofing numbers and playing audio messages to keep calls active. By keeping calls connected for extended periods, attackers ensure that phone lines remain congested, preventing legitimate calls from getting through. SIP-based call generators also allow attackers to control multiple attacks simultaneously, making them a preferred tool for large-scale TDoS campaigns.

How payday loan scams turn into TDoS attacks

Payday loan scams frequently serve as the first step in a TDoS attack. Here’s how they unfold:

  1. Identifying the victim Attackers target individuals who have taken out payday loans in the past, as these people are more likely to believe a fake debt collection call. They may also target businesses such as hospitals, where employees may be tricked into thinking a patient or staff member is involved in a payday loan dispute.

  2. Initiating the attack Attackers impersonate a debt collector and demand immediate payment. They use aggressive tactics, including threats of lawsuits or arrest, to scare victims into compliance. Many victims panic and provide their employer’s contact information, which the attacker then exploits to escalate the attack.

  3. Escalating the attack If the victim doesn’t pay, attackers shift to TDoS by using automated dialers to flood the employer’s phone system. They call every available number within the organization, including customer service lines, administrative offices, and even emergency contacts. This disrupts daily operations, making it difficult for employees to perform their jobs.

  4. Extorting the business Attackers claim they will stop the calls if a ransom is paid. Businesses, particularly hospitals and financial institutions, may feel pressured to comply simply to restore normal operations. Paying the ransom, however, does not guarantee an end to the attack, as attackers may demand more money or launch another attack later.

The impact of a payday loan scam TDoS attack

A payday loan scam that escalates into a TDoS attack can cause serious damage.

  • Disruption of service Attacks can block the phone lines of hospitals, emergency services, and businesses, preventing critical communication. This can delay emergency response times, putting lives at risk when 911 centers or hospitals are targeted. For businesses, customer service operations may come to a halt, resulting in frustration and potential loss of clients.
  • Financial losses Companies may lose revenue from missed customer calls, while others may be pressured into paying the ransom. Additionally, organizations targeted by payday loan scam and TDoS attacks often face unexpected expenses related to it security, hiring cybersecurity experts, and implementing preventive measures. These costs can quickly add up, particularly for small and medium-sized businesses.
  • Damaged reputation Businesses targeted by payday loan scams suffer reputational harm when customers or partners cannot reach them. Customers who experience repeated call failures may assume the company is unreliable and take their business elsewhere. The negative publicity surrounding a major TDoS attack can also deter potential investors or partners.

Preventing TDoS attacks

Organizations can reduce their risk of payday loan scams and TDoS attacks by implementing multiple layers of defense.

  • Call filtering and blocking Advanced systems analyze call patterns to detect and block suspicious traffic before it causes damage. By using AI-driven call analytics, businesses can identify unusual spikes in call volume and automatically filter out potential attack traffic. Call filtering tools can also block known spoofed numbers, reducing the risk of a successful payday loan scams.

  • Session Border Controller (SBC) SBCs monitor and control VoIP traffic, filtering out malicious calls. These systems act as gatekeepers, ensuring only legitimate calls are allowed through while blocking those that exhibit TDoS attack behavior. A properly configured SBC can mitigate most TDoS attacks before they impact operations.

  • Call firewall A call firewall protects phone networks by preventing unauthorized or suspicious calls. This technology works similarly to a traditional IT firewall, applying security policies to all inbound and outbound calls. Businesses can customize their firewall rules to block calls from high-risk regions, known scam numbers, or anonymous callers.

  • Rate limiting Limiting the number of inbound calls permitted from a single user prevents TDoS attacks from overloading systems. By capping the number of calls allowed per minute or hour, organizations can ensure that their phone lines remain operational even during an attempted TDoS attack. Rate limiting also makes it more difficult for attackers to maintain a sustained assault.

  • Redundancy and load-balancing Having backup phone lines and load-balancing systems reduces the impact of an attack. These strategies ensure that legitimate calls can still get through, even if one set of lines is under attack. Businesses can work with telecom providers to implement failover systems that automatically reroute calls in the event of a TDoS incident.

  • Call authentication and anti-spoofing STIR/SHAKEN protocols help verify caller identities and reduce caller id spoofing. By requiring call authentication, businesses can filter out many fraudulent calls before they reach employees. This significantly reduces the effectiveness of payday loan scams and other vishing scams.

Mitigate TDoS and payday loan scams with SecureLogix

SecureLogix is a leader in inbound and outbound call solutions that tighten security, strengthen authentication, and improve call branding. Our call fraud defense technology provides advanced solutions to protect businesses, healthcare facilities, financial institutions, and government agencies from TDoS attacks, payday loan scams, and other forms of call center fraud. As a pioneer of call security technology, SecureLogix offers proven solutions and the most skilled team in the industry to help mitigate TDoS attacks and other telephony threats.

Call Defense™ System

The Call Defense™ System is a robust call firewall that provides real-time protection against TDoS attacks, payday loan scams, robocalls, and other threats. Sitting at the edge of your voice network, it actively filters and blocks unwanted or malicious calls, filtering out legitimate traffic from fraudulent activity.

Key features:

  • Real-time threat detection Continuously monitor inbound and outbound calls for suspicious activity, ensuring early detection of TDoS attacks, traffic pumping, and other threats.
  • Enterprise-wide call filtering Analyze call metadata to block known scam numbers, robocall sources, and payday loan fraud operations before they reach employees or customers.
  • Customizable security policies Create tailored rules to mitigate specific threats, such as caller ID spoofing, high-volume call floods, and ransom-driven TDoS attacks.
  • Seamless integration Integrate SecureLogix solutions with existing systems to achieve a comprehensive layer of protection.

Call Secure™ Managed Service

For businesses that require 24/7 protection but lack in-house expertise, SecureLogix offers Call Secure™ Managed Service. This fully managed solution provides proactive monitoring, real-time threat mitigation, and expert analysis to ensure organizations stay protected from TDoS attacks, payday loan scams, and robocall disruptions.

Key features:

  • Continuous monitoring and attack prevention SecureLogix experts track call activity around the clock, identifying and mitigating threats before they escalate into service disruptions or financial extortion attempts.
  • Custom security policy management This service tailors call filtering, rate limiting, and fraud detection policies to match each organization’s unique risk profile.
  • Incident response and forensic analysis Get detailed reports on attacks, making it easier to refine call security strategies and regulatory compliance measures.
  • Scalable protection for large enterprises Call Secure™ Managed Service supports multiple sites to ensure consistent TDoS protection across all locations.

FAQ

Q: What is a Telephony Denial of Service (TDoS) attack?

A TDoS attack is a type of cyberattack that floods a phone system with an excessive volume of calls, preventing legitimate calls from getting through. Attackers often use automated robocalls or botnets to overwhelm phone lines, disrupting businesses, emergency services, and financial institutions.

Q: How do payday loan scams lead to TDoS attacks?

Payday loan scams start with fraudsters posing as lenders or debt collectors, pressuring victims to pay a fake debt. If the victim does not comply, attackers escalate by launching a TDoS attack against the victim’s employer or associated business, using automated dialing systems to flood phone lines and disrupt operations.

Q: What industries are most targeted by payday loan TDoS scams?

Payday loan TDoS attacks commonly target hospitals, financial institutions, government agencies, and call centers. These organizations rely on uninterrupted phone communication, making them more likely to pay ransoms to restore service.

Q: How do attackers use caller ID spoofing in payday loan TDoS attacks?

Attackers use caller ID spoofing to make their calls appear as if they are coming from legitimate businesses, law enforcement, or financial institutions. This tactic tricks victims into answering, increases the volume of call-backs, and makes it harder for organizations to filter out fraudulent calls.

Additional Reading