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The precise origins of phone phreaking are unknown, although it is believed that phreak-like experimentation began with widespread deployment of automatically switched telephone networks. Modern day phreaking is more likely to be traced to the United States in the mid-to-late when AT&T began introducing fully automatic direct-dial long distance and certain forms of trunking carriers which used International calling cards in-band signalling[citation needed]. At this time, calling cards system experimentation began, similar to the way modern-day hackers use the Internet.

Telephone tokens were once widespread medium of exchange for people wanting to talk on public phones with someone before there were telephone cards to collect and use. These tokens were once widely used in Europe, Israel, Japan, and South America, and are still used today in Hungary and Turkey.

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