Text alert: Mobile gadgets have become a hotbed for digital scams and spam

February 14, 2012|Andy Vuong, Denver Post

Jen Grant noticed a $40 jump in her family’s cellphone bill. The Denver-area resident did a little digging and uncovered $10 charges from third-party companies such as Funmobile Content and Quiz4now, fees that started showing up a couple of months earlier.

The companies had sent text messages to her 15-year-old’s cellphone telling him to respond with “stop’’ to avoid charges, Grant said, even though he had never opted in to any of their services.

“He’s 15 years old, never signed up for anything, and of course didn’t really think he needed to worry about it and just started deleting these things as they came in,’’ Grant said.

With three-quarters of all cellphone owners texting on a regular basis, the mobile gadgets have become the hotbed for digital scams and spam. Many of the frauds are originating via text message.

“The same threats that exist on a PC exist for cellphone users,’’ said Greg Post, a T-Mobile vice president.

The latest scam involves a purported request for iPhone 5 testers. Potential victims receive a text telling them that the first 1,000 users to enter a code supplied in the message at a specific website will get to “test and keep a new iPhone 5.’’

They get bombarded with spam and telemarketing calls, according to iphone5reviewed.com, which tested the scam.

For recipients who don’t have unlimited texting, the messages can be particularly galling since they are charged for each text they receive.

But mystery fees like those Grant uncovered are getting the most attention from consumer advocates and regulators. The Federal Communications Commission is considering new rules to curb so-called cramming, the practice of placing unauthorized charges on phone bills.

The agency may mandate that phone companies receive confirmation directly from subscribers before agreeing to place third-party charges on bills. Regulators may also require carriers to clearly disclose to consumers on monthly bills that they can choose to block third-party charges, if that option is available.

The nation’s largest cellphone service providers - T-Mobile, Sprint, AT&T, and Verizon - said they offer that option.

Wireless carriers say they accept charges from third-party companies as a convenience for subscribers, allowing them to pay for ring tones, games, and other services on one bill. Carriers, though, pocket up to 40 percent of third-party fees.

“I feel very frustrated that this major phone company is sort of participating in this shady way of charging for things and allowing this to come through their bill,’’ said Grant, a T-Mobile subscriber.

Grant said her son never subscribed to any of the third-party services and believes the companies got his phone number from social networking sites. T-Mobile reversed a few of the charges, she said.

Andy Vuong writes for The Denver Post.

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