By: Gordon Thomson
Over a Million Consumers Were Crammed With Charges for Text Message “Services”
If you are budget-conscious, you’re probably great at tracking where your money goes every month. You pore over receipts, take advantage of sales, and even research prices on big-ticket items to save the most. So how often do you review your mobile phone bill for fraudulent charges that could be draining your wallet?
At the request of the Federal Trade Commission, a federal court has temporarily halted a mobile phone cramming scheme that deceptively piled more than $100 million in charges on consumers’ mobile phone bills without their permission.
In its complaint, the FTC charged that the defendants used deceptive practices, including fake websites with bogus offers of “freebies” or gift cards, to trick consumers into providing their mobile phone numbers. The defendants then placed monthly subscription of up to $9.99 a month for a variety of “services” included daily horoscopes, romance advice, quizzes or ring tones on consumers’ mobile phone bills without their authorization.
How did the s-crammers do this? The FTC alleges they tricked consumers two ways:
Over a Million Consumers Were Crammed With Charges for Text Message “Services”
If you are budget-conscious, you’re probably great at tracking where your money goes every month. You pore over receipts, take advantage of sales, and even research prices on big-ticket items to save the most. So how often do you review your mobile phone bill for fraudulent charges that could be draining your wallet?
At the request of the Federal Trade Commission, a federal court has temporarily halted a mobile phone cramming scheme that deceptively piled more than $100 million in charges on consumers’ mobile phone bills without their permission.
In its complaint, the FTC charged that the defendants used deceptive practices, including fake websites with bogus offers of “freebies” or gift cards, to trick consumers into providing their mobile phone numbers. The defendants then placed monthly subscription of up to $9.99 a month for a variety of “services” included daily horoscopes, romance advice, quizzes or ring tones on consumers’ mobile phone bills without their authorization.
How did the s-crammers do this? The FTC alleges they tricked consumers two ways:
- by getting people to enter their mobile phone number into deceptive and fictitious websites with fuzzy usage terms in exchange for collecting freebies, playing games or taking quizzes;
- by purchasing lists of mobile phone numbers and automatically entering the numbers into subscription services without contacting consumers or letting them know.
- Read your monthly phone bill – every page, every month. Regularly review your phone bill to catch charges that are tacked on without your knowledge or consent. Cramming charges can be buried deep within the pages of your bill, making them tough to find or understand. Contact your carrier directly if you have questions about a charge.
- Strange or unsolicited text messages that suddenly appear on your phone could be signs of a cram. If you suddenly get a text offering any type of daily advice that you never signed up for, consider it a red flag that you’re being charged for something you didn’t authorize.
- Think twice about entering your mobile phone number or personal information on any website. Certain websites exist to serve as collection baskets for mobile phone numbers; they trick you into providing your number with free offers or access to online entertainment. This can put your money, as well as your privacy or identity at risk.
- Delete text messages you don’t want and never click on the links. Text messages that ask you to enter special codes, or to confirm or provide personal information could lead you to spoof sites that look real but could steal your money and identity.
- Report spam texts to your carrier. Forward the spam message to the short code 7726 (SPAM) free of charge, if you are an AT&T, T-Mobile, Verizon, or Sprint subscriber.
