Cross-borders smuggling tunnels enable unmonitored movement of people, drugs and weapons and pose a very serious threat to homeland security. Recent advances in strain measurements using optical fibers allow the development of smart underground security fences that could detect the excavation of smuggling tunnels. This paper presents the first stages in the development of such a fence using Brillouin Optical Time Domain Reflectometry (BOTDR). In the simulation study, two different ground displacement models are used in order to evaluate the robustness of the system against imperfect modeling. In both cases, soil-fiber interaction is considered. Measurement errors, and surface disturbances (obtained from a field test) are also included in the calibration and validation stages of the system. The proposed detection system is based on wavelet decomposition of the BOTDR signal, followed by a neural network that is trained to recognize the tunnel signature in the wavelet coefficients.The results indicate that the proposed system is capable of detecting even small tunnel (0.5m diameter) as deep as 20 meter.