What Does It Take For Mobile Operators To Care About SMS Cramming Scams?
from the scams-pay? dept
The various mobile operators have been making tons of revenue off of premium "short code" SMS programs. These are ways to add charges for various things directly to your phone bill. For example, they've become popular with various charities, so you can support them simply by texting a message to a particular short code. Of course, in many cases, the mobile operators charge you or take a cut for allowing this. And, of course, as with anything like this, it's been left open to scammers... and those scammers have moved in. Just as we saw with phone service cramming, where charges would be added to your landline phone bill, there's been a growing set of operations cramming premium SMS offerings.Broadband Reports highlights the saga of JAWA, a Scottsdale, Arizona-based company that's at the center of allegations of cramming. The company and a bunch of shells allegedly send text messages to people that say:
"Text back STOP if you don't want to subscribe."Most people, of course, don't text back because they think it's a scam. What they don't realize is that even if it's a scam, it's the not replying that lets the telcos start adding fees to your bill. The big question here: why does any mobile operator allow charges to be put on your phone bill for inaction?
The blog AZDisruptors (normally about Arizona startups) has been calling attention to the company, including putting together this video explaining how the cramming works, how JAWA's CEO Jason Hope is apparently building the largest house in the US (complete with a 3-story night club), and how AT&T pretends (falsely) that it can't do anything about it:
The thing is, JAWA has been doing its thing for quite some time. After Texas regulators began investigating, Verizon Wireless finally realized it needed to do something and sued. Amusingly, JAWA's defense to the lawsuit appears to be that it employs lots of people and is good for Scottsdale. However, it also points out that it's made Verizon Wireless tons of money, and even complains that Verizon Wireless seems to be withholding money owed.
While it's nice that Verizon Wireless has filed suit, it appears this only happened after Texas regulators began investigating, and after they made money from JAWA for a period of nearly four years. AT&T now claims that it's investigating too, but only after AZDisruptors demonstrated company representatives blatantly lying to him about whether or not they make any money from this and whether or not they can stop it.
The big question in all of this really should be why the mobile operators allowed this to happen at all. Why would they ever allow charges to be added to an account as a result of inaction, rather than through direct acceptance?
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Filed Under: cramming, mobile operators, scams
Companies: at&t, jawa, verizon wireless
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Part of the reason AT&T has been looking at the caps is that they are losing money from the landlines. In a nutshell, people are leave the high and expensive land lines and going mobile. In order to maintain their profit margins caps are one of the ways to rob from Peter, since Paul is starting to feel the pinch.
If you still have landline I suggest you put a hold on it for any billing from the phone, especially by third party. Otherwise you are open to all sorts of scams in this type scheme.
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They do not want to stop getting paid.
Let us look at the example of Caller ID for landlines.
This was an amazing feature, and the telcos charge way more than it costs them to provide. It was a great service, until the telemarketers said your hurting our business and then we will have fewer lines with you.
Then the telcos created a system that allows the telemarketers to make Caller ID worthless.
Caller ID for just number is like $8 a month, and another silly amount to provide the name as well. Lots of people who have landlines still have Caller ID, they do not consider that it is mostly pointless in an age of spoofing and "unknown numbers". Seriously how can a number be unknown? Did they hack the trunk lines to make calls or are they paying you a premium to make sure I can't figure out its another scammer on the line?
The carriers have no interest in stopping cramming. The money goes to them first. If it is a fly by night company they will not bother trying to fight for the money owed once they get caught. They roll up a new name, sign a new agreement and lather rinse repeat. The carrier then gives anyone scammed a "credit" on their bill, not an actual refund of money. Their bottom line is still plump with cash as they have to dole out a tiny bit more in service that costs them pennies.
I never had a texting plan on my phone, my ancient Razr. I had friends texting me and costing me money, and the carrier was more than willing to just let outside people add to my bill for providing a service I never asked for nor wanted. It took several calls but finally they put a block on texts and web access on the phone. This was after trying to upsell me a new texting plan on top of a new phone plan that would void my rollover minutes and leave me paying even more... all to not get charged for a service I never wanted to begin with.
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What Does It Take For Mobile Operators To Care About SMS Cramming Scams?
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Re: What Does It Take For Mobile Operators To Care About SMS Cramming Scams?
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Re: What Does It Take For Mobile Operators To Care About SMS Cramming Scams?
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Re: What Does It Take For Mobile Operators To Care About SMS Cramming Scams?
Yay!
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Start off by running a scraper program on telephone trunk lines. You can then find out which numbers are cell phones, and which are not (generally if a single number in the XYZ-ABC-0000 range is a cell, all 10,000 will be).
Once you have this, start using the email to SMS gateways provided by the services to send messages like the above. Be sure to record what you send, and any responses you get (or don't get).
Use this to send bills to AT&T, Verizon, Sprint (et al). for the numbers listed. Be sure to give details about the service [sic] you are providing, and proof that they opted in.
You're set! Until the feds crack down on you.
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And another question is, why does anyone pay it at all?
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The carriers could put a system into place to stop it from working this way but it is much to lucrative for them to allow 3rd parties to rip off their customers and the carrier takes a cut from the money they collect on each bill. So they have a vested interest in not changing the system to protect the user, but to keep pulling in fees from people unwilling to respond to a scammy looking text message.
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In a word, yes. But don't worry, the US gov't is hard at work, getting your gov't to fall in line and change your laws to match US laws. Soon, you can get screwed just like you were in the US without ever even having to go there!
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They hit you coming and going for SMS texting.
Myself I have a fixed plan. Flat rate, no extras, no contract. It's an old Razor that was given to me. I'm cool with that. Beyond basic texting and an occasion phone call, I have nothing else I want to do on a phone.
I don't want the net, I don't want to play music on it, I don't want to play games on it. All those functions can be done on the computer.
Since my carrier has been bought out, I am considering dropping their service. The new carrier seems to want to charge $4 to accept payment.
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JAWA has already threatened to sue AZDisruptors
Classy.
http://www.azdisruptors.com/blog/2011/3/28/my-apology-offer-to-jawa-jason-hop e.html
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Industrious Young Lawyer Needed
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Similar angle...
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Re: Similar angle...
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Re: Similar angle...
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How is this not fraud?
This is fraud
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Why?
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Re: Why?
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Re: Re: Why?
ABP works nicely.
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Re: Why?
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No! The big question is ...
One bill like that to me and that service is history. Why would anybody stand still for this on their bill? Did anyone call their lawyer or the DA or the PUC or the FCC or their congress person. (Oh that last one is a waste of time for sure, I suppose.)
What do you think they would do if they lots 1% of their cell phone service and the droppers told them it was the unwanted charges? I have no sympathy for folks who use any of these services. Even without enabling these scams they are bad businesses. Why do your patronize them? Are you really that addicted to using them? So addicted that you let them screw you over?
Isn't the scam-enabling and the dropped calls and the bad customer service and the (NOT) unlimited data plans and the astronomical charge per character for SMS and contract lock-ins and the early termination fees enough to make you STOP USING THESE COMPANIES!
You have the power to stop them dead in their tracks ... stop using them. Don't look to the government for help. Help yourself. Help each other.
FULL DISCLOSURE: I have a cell-phone for road emergencies only. It cost me $12 and I spend about $100 per year on minutes. I have never sent a text message from a phone.
Oh, and I caught the power company overcharging me by way under estimating my bill one month then charging me a premium the next month for using "too much power". They called it a software bug but the person on the phone was familiar with the problem. She apologized and quickly fixed it, but I wonder how many people don't catch it each month? I think it was a software feature, not a bug. I sent a letter to the PUC with all the details but they never did anything.
It's your money. If you let them take it they'll always come back for more. You have to demand good value. If no one gives it then go without.
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Re: No! The big question is ...
Yeah? Well, lucky you. A lot of people can't afford to give up phone service.
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Sounds like their CEO needs a beat down, big time!
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Why?
Greed. Any questions?
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it's all about futures - cell phone as payment systems
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Another SLAPP Lawsuit
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More douchebaggery from Jason Hope
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Thanks for sharing - greatly appreciated
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federal trade commission
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Sms Cramming
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Carrier Wire Fraud PSMS charges on cell phone bills
White Collar Crime does more damage to societies than Terrorism and Treason combined.
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PROTECTING FAMILIES FROM Cell Phone CARRIER PSMS/CSC & DATA FRAUD SCAMS
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