Consumer Alerts and Scams
To help consumers stay abreast of changes in the utility industry and to
protect themselves from being over charged or scammed, the Ohio Consumers'
Counsel (OCC) would like to make residential consumers aware of issues
as they arise. Following is a list of alerts and scams in the telephone
industry.
To report a scam, contact occ@occ.state.oh.us
What customers should know about:
AT&T Prepaid Calling Cards
October 2006
The Federal Communications Commission (FCC) is alerting telephone
customers that calls to cellular telephones in Mexico will likely be
more costly beginning as early as Nov. 4. The Mexican government has
permitted telephone companies in its country to charge more for connecting
calls from other countries to wireless phones in Mexico. As a result,
the higher fee will probably be passed on to consumers by their long-distance
company. Customers are already billed long-distance usage rates by
their long-distance provider for calls to Mexico, and will now see
an additional per-minute rate applied to each call completed to a wireless
telephone. This additional rate will likely be at least 14 cents per
minute.
In addition, consumers in the United States calling wireless telephone
numbers in Mexico will be required to dial a "1" before the
current ten-digit number. For more information on this issue, visit
the FCC's
consumer advisory.
Consumers' Calling History For
Sale
December 2005
Consumers using cellular service should be aware that a list of calls
recently dialed from their phone may be obtained through several website-based businesses. Reports indicate that a fee of approximately
$100 may provide someone with a listing of outgoing calls from any
cell phone. Some websites also offer to provide other personal information,
including the non-published home telephone number based on an address
provided by an individual.
While these services are apparently legal, consumers should be especially
aware of their privacy and understand the potential for scams, including
identity theft, to occur. Consumers also can report any concerns or
complaints to their cellular company or enforcement agencies such as
the Ohio Attorney
General's Office and the Federal
Communications Commission.
Rights Involving Unauthorized
Pay-per-use Calls
August 2005
Telephone customers should know their rights if they receive charges
for 900 or 976 "pay per use" calls they do not recognize.
Billing disputes involving these charges need to be made to the local
telephone company within 60 days from the time the bill is issued.
During an investigation, customers do not have to pay for these charges.
Basic local and long-distance telephone service cannot be disconnected
based on any past due 900 or 976 charges.
In addition, if customers wish to block anyone in their home from
making 900 or 976 calls, they should inquire about services provided
by their local telephone company. Typically this type of blocking service
is free to customers who request it when they establish their telephone
line. A one-time activation fee is sometimes required for those with
existing telephone service.
Telemarketing Scams Drain Consumers'
Wallets
February 2006
The National Consumers League reports that telemarketing scams occurred
more often and drained more money from customers' wallets in 2005 than
in 2004. A study by the organization found that the number of incidents
increased 39 percent and the average loss by consumers rose to $2,892
from $1,974. The most commonly reported scam involved prizes and sweepstakes,
where a consumer was asked for payment to claim a prize that was never
delivered. For more information on the report, visit www.nclnet.org.
Telemarketing to Cellular Telephones
February 2006
Some customers have received warnings that if they do not add their
cellular phone number to the national Do-Not-Call list, it will be
sold to telemarketers or placed in a national wireless directory. These
warnings are not accurate. According to the Federal Communications
Commission (FCC) and other sources, consumers should know that:
It is illegal for most telemarketers to place calls to your cellular
phone.
Since most telemarketing calls to a cellular phone are illegal, adding
a cellular phone number to the national Do-Not-Call list should be
unnecessary. However, consumers may add their personal cellular phone
numbers to this list. For more information on the Do-Not-Call list,
click here.
A proposal has been made that would allow cellular phone customers
the ability to be listed in the existing nationwide 4-1-1 system. The
proposal would need to be approved by the FCC before going into effect.
Cellular phone numbers would not be listed without customers' permission
and they could remove their numbers at any time without cost. No printed
or electronic directory would exist.
Utilities Fraud Can Lead to
Identity Theft
February 2006
According to the Federal Trade Commission, the largest percentage
of Ohio's identity theft complaints in 2005 was the result of telephone
or utilities fraud. Twenty-eight percent of identity thefts involved
telephone or utilities fraud for a total of 1,993 complaints statewide.
Nationwide, telephone or utilities fraud was second only to credit
card fraud as the most common type of reported identity theft. In addition,
approximately 17 percent of companies committing fraud and identity
theft used the telephone as the initial method to contact consumers.
One example of telephone fraud is the opening of an unauthorized account
using stolen personal information. The opening of an account with a
local telephone company can help a thief gain documentation that may
be needed to open a bank or credit card acc
March 2006
The Plain Dealer reports that some consumers have seen unauthorized
charges by a company called Value Link Plus on their monthly local
telephone bills. A charge of $6.58 apparently relates to dial-up Internet
service that was never ordered, but has appeared on some AT&T (formerly
SBC) bills. Local telephone companies such as AT&T may choose to
include charges from third parties on their bills. The newspaper reported
that while the charge has primarily affected bills received by small
or home-based businesses, several residential customers also have been
hit with cha
809 Scam
What is it? Callers dial telephone numbers beginning with area
codes 809, 284, 876 (or another three-digit area code) and inadvertently
and unknowingly make high-cost international calls.
How it happens? Callers receive an email, voicemail or page
encouraging them to call a number to hear about a prize or an important
message. The three-digit area code used to dial the number actually
dials outside of the country. Callers are unaware that they made an
international call until they receive their telephone bill.
How to avoid the scam? Check unfamiliar area codes before returning
calls
April 2009
Reports in Ohio indicate that consumers are receiving calls to their
telephones - including to cell phones - indicating that their ATM
card from a local bank is being canceled due to suspected fraud and
to "press one" to be connected to a security team. These
types of calls could be a version of an old telephone scam where
a caller poses as a representative of the customer's bank to obtain
personal information.
For information on identity theft protection tips visit the Ohio
Attorney General or the Federal
Trade Commission.
Call Splashing
What is it? Call splashing occurs when a consumer uses a public
telephone (i.e. payphone, hotel, airport telephone) and makes a long-distance
call that is routed to a distant call center before being passed to
the consumer's preferred long-distance carrier. The hand off may cause
the consumer to be charged a higher long-distance rate for the call.
How does it happen? When the call is "handed off" from
the call center to the long-distance carrier, the long distance company
charges the customer for a more expensive call originating from the
call center, not the customer's location.
How to avoid "call splashing?" Consumer may avoid
being "splashed"
by refusing a call transfer when the customer does not understand all
of the details. After using a public telephone for long-distance calls,
always verify the origination and destination locations when the telephone
bill is received. If either the calling point is incorrect and/or the
billing rate is higher, call the long-distance company to express your
concerns and request the correct billing rate. Consumers also can call
the Ohio Consumers' Counsel at 1-877-PICKOCC (1-877-742-5622).
Caller ID Spoofing
April 2009
Scams involving "Caller ID spoofing" have been reported
in Ohio. Caller ID spoofing occurs when a scammer causes a different
telephone number from its own to appear on a consumer's Caller ID display.
This can be done by using special software that allows a caller to
mask its true Caller ID information. When a caller's identity is spoofed,
consumers may be inclined to answer the telephone call since it may
appear to be from someone they know or a local telephone number. Similar
to other scams, once the caller has the consumer on the line, the caller
may try to obtain personal information, such as a social security number,
by claiming to be the police, a government agency or a bank.
To help prevent falling victim to this scam, consumers should:
Be cautious of calls they do not recognize on their Caller ID.
Not be in a rush to disclose personal information. Ask the caller
for a callback number and verify that he or she is legitimate.
Ask that a request for personal information be put in writing.
If consumers believe they have fallen victim to a Caller ID spoofing
scam or that their telephone number is being spoofed, they should call
the local law enforcement, the telephone company and the Ohio
Attorney General's Office.
Telemarketers using Caller ID spoofing are in violation of the federal
Do-Not-Call rules because they are not disclosing their telephone number
to callers. Complaints against violations of the Do-Not-Call rules
can be submitted to the Ohio Attorney General's Office or to the federal
government.
Call Forwarding Scam
November 2007
What is it? A caller persuades a consumer to push *72, a code often
used to activate Call Forwarding, followed by dialing a telephone number,
sometimes leading to a long-distance operator. Once Call Forwarding
is activated, all of the consumer’s calls are transferred to
that telephone number. The scam can be used to stick the victim with
charges for such services as collect or third-party calls.
How it happens? A caller may pose as, for example, a law enforcement
agency to convince the victim to push *72 and the telephone number.
Many consumers are not familiar with the *72 function and how it can
cause their telephone number to be misused through this type of scam.
How to avoid it? Consumers receiving calls asking them to dial a telephone
code such as *72 should beware. There are no legitimate reasons an
unknown caller would need a consumer to use this function.
Do-Not-Call List Scam
What is it? Consumers believe they are enrolling or confirming
their enrollment on a state Do-Not-Call registry. Private information
given to the caller by the consumers is later used for fraudulent activity.
How it happens? Consumers receive a call to enroll or verify
their enrollment on the state Do-Not-Call registry. To confirm his
or her identity, the consumer agrees to give the caller information
such as a Social Security number, bankcard or account numbers. The
information is later used for making unauthorized purchases, stealing
identity and money, etc.
How to avoid it? Don't be tricked into believing that Ohio
has a state Do-Not-Call registry. Ohio uses the national registry to
track residents who do not want to be called. Keep in mind that the
officials from the federal Do-Not-Call registry will not call consumers
to enroll or confirm enrollment on the list.
December 2008
According to published reports, scammers are targeting grandparents
in an effort to swindle money. So-called "granny scams" often
begin with a telephone call claiming to be the grandchild or that a
grandchild is in trouble in Canada or other locations. Scammers often
do some research to help invent a plausible story, finding out the
names of grandchildren and the colleges they attend. An emergency is
concocted such as an arrest, a terrible accident or a medical problem,
and communicated to the grandparents along with the request for money.
One warning sign that a call is a hoax is when the scammer tries to
convince the grandparent to keep the situation a secret.
For more information about the granny scams, read a recent MSNBC.com
article.
Jamming
AT&T Prepaid Calling Cards
Customers using AT&T prepaid phone cards should be aware that a call made from within Ohio to another telephone number within the state uses more of the minutes contained on the card than a call made to someone in another state.
When calling within Ohio, three minutes are deducted for each minute of talk time. For example, a 10-minute call from Cleveland to Dayton would subtract 30 minutes from the total value of a customer's card.
For more information, visit this online resource for in-state rates in other states and more terms affecting AT&T prepaid calling cards.
Consumers' Calling History For
Sale
Consumers using cellular service should be aware that a list of calls recently dialed from their phone may be obtained through several website-based businesses. Reports indicate that a fee of approximately $100 may provide someone with a listing of outgoing calls from any cell phone. Some websites also offer to provide other personal information, including the non-published home telephone number based on an address provided by an individual.
While these services are apparently legal, consumers should be especially aware of their privacy and understand the potential for scams, including identity theft, to occur. Consumers also can report any concerns or complaints to their cellular company or enforcement agencies such as the Ohio Attorney General's Office and the Federal Communications Commission
Rights Involving Unauthorized Pay-per-use Calls
Telephone customers should know their rights if they receive charges for 900 or 976 "pay per use" calls they do not recognize. Billing disputes involving these charges need to be made to the local telephone company within 60 days from the time the bill is issued. During an investigation, customers do not have to pay for these charges. Basic local and long-distance telephone service cannot be disconnected based on any past due 900 or 976 charges.
In addition, if customers wish to block anyone in their home from making 900 or 976 calls, they should inquire about services provided by their local telephone company. Typically this type of blocking service is free to customers who request it when they establish their telephone line. A one-time activation fee is sometimes required for those with existing telephone service.
Telemarketing Scams Drain Consumers' Wallets
The National Consumers League reports that telemarketing scams occurred more often and drained more money from customers' wallets in 2005 than in 2004. A study by the organization found that the number of incidents increased 39 percent and the average loss by consumers rose to $2,892 from $1,974. The most commonly reported scam involved prizes and sweepstakes, where a consumer was asked for payment to claim a prize that was never delivered. For more information on the report, visit www.nclnet.org.
Telemarketing to Cellular Telephones
Some customers have received warnings that if they do not add their cellular phone number to the national Do-Not-Call list, it will be sold to telemarketers or placed in a national wireless directory. These warnings are not accurate. According to the Federal Communications Commission (FCC) and other sources, consumers should know that it is illegal for most telemarketers to place calls to your cellular phone.
Since most telemarketing calls to a cellular phone are illegal, adding a cellular phone number to the national Do-Not-Call list should be unnecessary. However, consumers may add their personal cellular phone numbers to this list. For more information on the Do-Not-Call list, click here.
A proposal has been made that would allow cellular phone customers the ability to be listed in the existing nationwide 4-1-1 system. The proposal would need to be approved by the FCC before going into effect. Cellular phone numbers would not be listed without customers' permission and they could remove their numbers at any time without cost. No printed or electronic directory would exist.
Utilities Fraud Can Lead to Identity Theft
According to the Federal Trade Commission, the largest percentage of Ohio's identity theft complaints in 2005 was the result of telephone or utilities fraud. Twenty-eight percent of identity thefts involved telephone or utilities fraud for a total of 1,993 complaints statewide.
Nationwide, telephone or utilities fraud was second only to credit card fraud as the most common type of reported identity theft. In addition, approximately 17 percent of companies committing fraud and identity theft used the telephone as the initial method to contact consumers.
One example of telephone fraud is the opening of an unauthorized account using stolen personal information. The opening of an account with a local telephone company can help a thief gain documentation that may be needed to open a bank or credit card account.
809 Scam
What is it? Callers dial telephone numbers beginning with area codes 809, 284, 876 (or another three-digit area code) and inadvertently and unknowingly make high-cost international calls.
How does it happen? Callers receive an email, voicemail or page encouraging them to call a number to hear about a prize or an important message. The three-digit area code used to dial the number actually dials outside of the country. Callers are unaware that they made an international call until they receive their telephone bill.
How to avoid the scam? Check unfamiliar area codes before returning calls.
Call Splashing
What is it? Call splashing occurs when a consumer uses a public telephone (i.e. payphone, hotel, airport telephone) and makes a long-distance call that is routed to a distant call center before being passed to the consumer's preferred long-distance carrier. The hand off may cause the consumer to be charged a higher long-distance rate for the call.
How does it happen? When the call is "handed off" from the call center to the long-distance carrier, the long distance company charges the customer for a more expensive call originating from the call center, not the customer's location.
How to avoid it? Consumer may avoid being "splashed" by refusing a call transfer when the customer does not understand all of the details. After using a public telephone for long-distance calls, always verify the origination and destination locations when the telephone bill is received. If either the calling point is incorrect and/or the billing rate is higher, call the long-distance company to express your concerns and request the correct billing rate.
Caller ID Spoofing
Scams involving "Caller ID spoofing" have been reported in Ohio. Caller ID spoofing occurs when a scammer causes a different telephone number from its own to appear on a consumer's Caller ID display. This can be done by using special software that allows a caller to mask its true Caller ID information. When a caller's identity is spoofed, consumers may be inclined to answer the telephone call since it may appear to be from someone they know or a local telephone number. Similar to other scams, once the caller has the consumer on the line, the caller may try to obtain personal information, such as a social security number, by claiming to be the police, a government agency or a bank.
To help prevent falling victim to this scam, consumers should:
- Be cautious of calls they do not recognize on their Caller ID;
- Not be in a rush to disclose personal information. Ask the caller for a call back number and verify that he or she is legitimate; and
- Ask that a request for personal information be put in writing.
If consumers believe they have fallen victim to a Caller ID spoofing scam or that their telephone number is being spoofed, they should call the local law enforcement, the telephone company and the Ohio Attorney General's Office.
Telemarketers using Caller ID spoofing are in violation of the federal Do-Not-Call rules because they are not disclosing their telephone number to callers. Complaints against violations of the Do-Not-Call rules can be submitted to the Ohio Attorney General's Office or to the federal government.
Call Forwarding Scam
What is it? A caller persuades a consumer to push *72, a code often used to activate Call Forwarding, followed by dialing a telephone number, sometimes leading to a long-distance operator. Once Call Forwarding is activated, all of the consumer's calls are transferred to that telephone number. The scam can be used to stick the victim with charges for such services as collect or third-party calls.
How does it happen? A caller may pose as, for example, a law enforcement agency to convince the victim to push *72 and the telephone number. Many consumers are not familiar with the *72 function and how it can cause their telephone number to be misused through this type of scam.
How to avoid it? Consumers receiving calls asking them to dial a telephone code such as *72 should beware. There are no legitimate reasons an unknown caller would need a consumer to use this function.
Do-Not-Call List Scam
What is it? Consumers believe they are enrolling or confirming their enrollment on a state Do-Not-Call registry. Private information given to the caller by the consumers is later used for fraudulent activity.
How does it happen? Consumers receive a call to enroll or verify their enrollment on the state Do-Not-Call registry. To confirm his or her identity, the consumer agrees to give the caller information such as a Social Security number, bankcard or account numbers. The information is later used for making unauthorized purchases, stealing identity and money, etc.
How to avoid it? Don't be tricked into believing that Ohio has a state Do-Not-Call registry. Ohio uses the national registry to track residents who do not want to be called. Keep in mind that the officials from the federal Do-Not-Call registry will not call consumers to enroll or confirm enrollment on the list.
Jamming
What is it? The local telephone company places an unauthorized freeze on an account, which prevents a customer from switching to another local or toll telephone provider.
How does it happen? Jamming occurs when the local telephone company places a freeze on an account without the customer's consent or knowledge. However, a customer can add a freeze to an account to prevent being switched to a new carrier without the customer's consent.
How to avoid it? The Office of the Ohio Consumers' Counsel encourages customers to regularly call their local telephone company to find out if a freeze has been added to their account. Customers who determine that they have an unauthorized freeze on their accounts should request that it be removed.
What is it? The local telephone company places an unauthorized freeze
on an account, which prevents a customer from switching to another
local or toll telephone provider.
How does it happen? Jamming occurs when the local telephone company
places a freeze on an account without the customer’s consent
or knowledge. However, a customer can add a freeze to an account to
prevent being switched to a new carrier without the customer’s
consent.
How to avoid being “jammed”?
The Office of the Ohio Consumers’ Counsel encourages customers
to regularly call their local telephone company to find out if a freeze
has been added to their account. Customers who determine that they
have an unauthorized freeze on their accounts should request that it
be removed.
August 2006
Reports in Ohio and other states indicate that consumers are receiving
misleading telemarketing calls regarding long-distance telephone service.
The caller claims to be from the local telephone company and promises
a senior citizen discount. In reality, the calls are not from the local
telephone company and seek to switch the consumer to another long-distance
provider at rates that are actually higher than the consumer is currently
paying. Consumers who receive a call promising a long-distance discount
should be sure to ask questions and to watch their future telephone
bills for any unauthorized changes.
September 2009
Ohio Attorney General Richard Cordray has warned the public about
a scam targeting the state's veterans. A scammer will call veterans
and claim to be representing Patient Care Group. Claiming that the
U.S. Department of Veterans Affairs (VA) has changed the way prescriptions
are dispensed, the scammer asks for the veteran's credit card number.
Suspicious calls can be reported to the Ohio Attorney General's
Office at www.SpeakOutOhio.gov or
calling (800) 282-0515.
For more information about this scam targeting Ohio veterans and
tips to avoid telephone scams, read the Ohio
Attorney General's press release.
What is it? Consumers lose money by acting on a “hot” stock
tip left on their answering machine.
How it happens? A message is left on your answering service for a
Sue from Jane. The message includes a “hot” tip for a specific
stock that is about to explode. But you are not Sue and you don’t
know a Jane. A scam artist intentionally has left the message hoping
that you (and other unsuspecting victims) will take the advice and
purchase the stock. When the stock’s value increases, the scammer
sells his share s for a profit. The person who has been scammed ends
up losing money.
How to avoid it? Never rely on a stock tip received from someone you
don’t know. Do the research yourself. If you receive a ‘pump
and dump” message, report it to the Security and Exchange Commission
at 1-800-732-0330 or enforcement@sec.gov.
For more information on telephone scams, visit the Federal Communications
Commission's website at www.fcc.gov.
In addition, by clicking
here consumers can file complaints regarding such issues as junk
faxes, Do-Not-Call violations and prerecorded telephone messages.
Office
of the Ohio Consumers’ Counsel - Your Residential Utility Consumer
Advocate