Austin American-Statesman

FTC files suit over alleged scam texts Rarely, if ever, do any consumers receive any actual reward.

Mobile phone users directed to sites that seek personal informatio­n.

- By Edwardwyat­t

WASHINGTON — The Federal Trade Commission said Thursday it had filed eight lawsuits in federal courts around the country against companies it accused of ordering or engineerin­g the sending of hundreds of millions of scam text messages to mobile phone users.

The text messages, which typically promise gift cards to national chain stores or other prizes, are sent to random phone numbers and usually direct recipients to a website where they are asked for personal informatio­n, including Social Security numbers, credit card numbers or other data, FTC officials said.

Rarely, if ever, do any consumers receive any actual reward, said C. Steven Baker, the commission’s Midwest region director. Instead of fulfilling the promise of prizes, the websites often take consumers through multiple screens asking for more detailed informatio­n or getting them to sign up for free trials of product.

“If any consumer gets that far and actually gets a gift card, it isn’t free,” Harwood said, although he acknowledg­ed the commission was not aware of anyone who had received a promised reward.

He spoke to reporters in a teleconfer­ence from Chicago.

Roughly 60 percent of mobile phone users have received one or more spam text messages in the last year, he said, and about 15 percent clicked on the link included in the message.

In the eight federal civil cases filed around the country in recent days, the commission named 29 individual­s, most of whom worked for companies that were hired to send the text messages.

One of the complaints was filed against the operators of one of the websites to which consumers were directed. Among the companies named were Superior Affiliate Management, Rentbro, Appidemic, Verma Holdings, AdvertMark­eting, Seaside Building Marketing and Subscriber­BASE Hold- ings.

Sending spam messages is prohibited under civil law; other laws are often violated when spam messages are sent to numbers registered in the federal “Do Not Call” registry.

The commission said an additional case charging contempt of court is being pursued against Phillip A. Flora, a serial textmessag­e spammer who was barred in 2011 from sending unsolicite­d texts. He faces potential felony charges.

The companies that send the scam messages frequently change the phone numbers where their spam originates, officials said, making them difficult to track.

The FTC has received at least 50,000 complaints about spam text messages in the last few years, including 20,000 complaints that related to an offer of a free gift. Baker said the commission received seven times as many complaints in 2012 as it did in 2011.

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