Cramming: New scam targets cell phone users

Better Business Bureau (BBB) is warning cell phone users about a new scam emerging in the marketplace that can result in unauthorized charges appearing on their monthly wireless statement.

Consumers across Saskatchewan report getting calls on their mobile phones during which the caller hangs up. When cell phone owners call back, they are connected to a paid international adult entertainment service, chat line or other alleged call centre service located outside the country. Victims are subsequently billed not only for the incoming international call if they answer, but also the unwanted “premium service,” which typically appears as a $19.95 charge in their next cell phone bill. In many cases, crammers may only put a small charge of a few dollars, so as not to arouse suspicion. However, as the crammers gain sophistication and expertise, the magnitude of charges and the numbers of victims are expected to grow.

The practice of third parties placing unauthorized charges on wireless accounts is called “cramming.” Cramming as a fraudulent act is not new, with incidents reported over the past several years; however, the frequency with which it is occurring has jumped in the last few months. The area codes that most commonly appear on the caller ID often originate from the Dominican Republic (809), Jamaica (876), British Virgin Islands (284) and Grenada (473).

Most recently, a consumer reported that he received such a call from area code (306) and prefix 526 which is a designated cell phone prefix in the Saskatchewan market. When the number was called back, his return call was blocked by the auto-call back feature on his cell phone, which notified him that the call was to an international long distance destination. The use of technology to mask the true identity of a caller on your caller ID program is known as “spoofing” and has been around for years. The mixing of spoofing with cramming elevates the interest a victim may have in returning the call due to familiarity with the area code, and broadens the potential number of cell phone users that might be victimized.

BBB recommends that if you don’t recognize any telephone number on your caller ID, ignore it. If you do answer, do not call back. Legitimate callers will leave messages identifying themselves. Check your wireless bills carefully and immediately inform your carrier if you spot any unauthorized charges.