Cramming (fraud)
Cramming is a form of
According to the U.S. National Association of Attorneys General, cramming was the 4th most common consumer complaint of 2007 in the United States.[2]
Types
There are various forms of cramming.
Phone cramming
The examples and perspective in this section may not represent a worldwide view of the subject. (December 2014) |
Phone cramming is the practice of placing unauthorized charges on a telecommunication subscriber's home or mobile telephone bill.[3][4][5]
Cramming is most common in the
In the UK all the UK mobile operators have a third party direct to bill scheme (chargetomobile 'payforit') controlled by the Payforit Scheme Rules which prevent unauthorised charging.
In the USA an effort to prevent instances of cramming, some members of the third party billing industry have implemented screening and monitoring measures to identify and eliminate crammers.[6] Some companies offer consumer protection websites to help consumers better understand their phone bill and detect cramming as soon as it occurs.[7]
The Federal Communications Commission (FCC) estimates that cramming has impacted tens of millions of American households.[8]
Web cramming
Web cramming involves billing consumers for a web page they did not even know they had.[9]
This is most often accomplished when criminals develop new web pages for small businesses and
telecommunications companies provide the service of being able to collect bills for companies that perform a service over the telephone.[10]
Preacquired accounts
Another is "preacquired account telemarketing fraud", cramming of unauthorized charges by telemarketers who have bought or obtained consumer account information prior to the telemarketing call, sometimes from the consumer's own bank.[11]
Fighting cramming
Phone companies like Verizon respond by removing cramming charges from a consumer's bill upon request, and will cease business with the company that crams.[12] Verizon, at the customer's request, will put a Cramming Block on the customer's account, that prevents third parties from adding charges.
All the UK mobile operators have a third-party direct-to-bill scheme (chargetomobile 'payforit') controlled by the Payforit Scheme Rules which prevent unauthorised charges. [13]
Notable cases
In 2005,
Following a Federal Communications Commission investigation, in October 2010, Verizon announced that it would refund up to $50 million to its customers to offset cramming charges.[15]
In October 2014,
See also
References
- ^ "Cramming A New Form Of Fraud, Officials Say - Consumer Alert News Story - WBAL Baltimore". WBAL-TV. 2006-10-05. Archived from the original on February 18, 2012. Retrieved 2011-09-14.
- ^ "Top 10 Consumer Complaints for 2007 Announced". WMTV. September 23, 2008. Archived from the original on 2011-07-17. Retrieved 2011-09-14.
- ^ "Take a close look at your phone bill for mysterious charges - National Consumer Protection Week 2011". National Consumer Protection Week. 2011-05-20. Archived from the original on October 16, 2011. Retrieved 2013-05-20.
- ^ Tressler, Colleen (2013-04-17). "Is Your Mobile Bill a Cram Sandwich?". National Consumer Protection Week. Archived from the original on 2013-04-21. Retrieved 2013-05-20.
- ^ "Mystery Charges on Your Phone Bill". Federal Trade Commission. Archived from the original on 2013-05-12. Retrieved 2013-05-20.
- ^ "Cramming Prevention". Know Your Phone Bill.org. Archived from the original on 2011-10-21. Retrieved 2011-10-17.
- ^ "Cramming: Mystery Phone Charges". Federal Trade Commission. 2009-07-02. Archived from the original on 2011-09-16. Retrieved 2011-09-14.
- ^ "FBI — "Cramming" Scheme Operator Sentenced". FBI.
- ^ "Fraud in the Internet". Computer Crime Research Center. April 11, 2005. Retrieved 2011-09-14.
- ISBN 978-0132447492.
- ^ "BEFORE THE FEDERAL TRADE COMMISSION WASHINGTON, D.C. Telemarketing Sales Rule Review. SUPPLEMENTAL COMMENTS OF THE MINNESOTA ATTORNEY GENERAL'S OFFICE. FTC File No. R411001" (PDF). Archived from the original (PDF) on 2009-05-13. Retrieved 2009-11-02.
- Boston Globe. 2005-04-04. Retrieved 2011-09-14.
- ^ "Communications: regulation and outsourcing in the UK (England and Wales): overview". Practical Law. Retrieved 2021-12-20.
- ^ Kilgannon, Corey (2005-01-09). "Phone Executive Admits Conspiracy in Mob Fraud". The New York Times. Retrieved 2011-09-14.
- ^ Sutter, John D. (October 4, 2010). "Verizon to refund millions in 'mystery fees'". CNN. Retrieved 2014-10-08.
- ^ O'Toole, James (October 8, 2014). "AT&T will pay $105 million for unauthorized charges on customer bills". CNN. Retrieved 2014-10-08.