Cramming: How The Justice Department Helped Birth A Multibillion Dollar Phone Scam (VIDEO)

DailyFinance:

Recently, the Federal Communications Commission, the Federal Trade Commission and the Senate have all taken aim at "cramming," a multibillion dollar industry that cheats phone customers by adding bogus fees to their bills. But the groundwork for this massive swindle -- which affects an estimated 17% of all households -- began with the much-ballyhooed breakup of AT&T (T). Now, almost 30 years after the Justice Department unwittingly opened the floodgates to a tidal wave of fraudsters, several other government organizations are trying to close them.

Read the whole story: DailyFinance

Comments

[Sarah Trickey]

01:09 PM on 07/31/2011

Private corporations need regulation like a toddler needs a parent.

[KathyinMichigan]

06:40 PM on 07/29/2011

This is what I do for a living. I fix small, medium and large business's phone bills, data bills and wireless bills. I also consult on data networks. A whole industry has started up from this scamming it is called Telephone Expense Management or TEM. Look it up.

[TooLooze]

05:20 PM on 07/29/2011

Happened to me at T-Miserable. Their explanation for the $3 monthly "other charges" was a third party bill piggybacked on theirs.

[Bobby Joon]

09:42 AM on 07/29/2011

I had to call ATT twice already for 20 dollar fees that I never was told about and they do remove it but I think it's crazy that we have to call to have charges removed and they should be fined the same amount if the fee was never authorized and given back to the customer so that way we could make a Billion dollar for a change.

[Benmyoho]

09:24 AM on 07/29/2011

Duh! Happened to me. Like over a thousand dollars in unauthorized charges from third-party leeches, which are being abetted by the phone companies. I had been disputing with V about the scam--well they, as usual, gave me the runaround. I argued with them why they are acting as collecting agents for the scammers, but they won't budge. My solution was to eventually switch to Optimum. Lessons learned the hard way.

[CenaW]

09:22 AM on 07/29/2011

We the people want some good old time regulation.
We want it now!

[moutonnoir]

02:14 AM on 07/29/2011

this is why the populace things privatization and public infrastructure and services will be equivalent: the once scam-free government approach has now basically become to enable scams and enjoy the political campaign cash that results..

imagine these creeps running our schools (anymore than they already do)

[Mr Bad Example]

10:55 PM on 07/28/2011

Every couple of months, an extra $1 gets charged to my flat-rate payment for my cell phone...my bank shows it as a direct billing from Verizon, yet when I call Verizon payment support, they not only can't tell me what the dollar is for...they have no record of having billed it or received it.
If it was more than a dollar every few months, I'd call the FTC to complain, but it would cost me more in phone calls to complain than they're taking from me.
I wonder how many others are in the same boat.

[bealebkk]

08:56 PM on 07/28/2011

Now! on command, everyone bend over

[mlm4420]

08:52 PM on 07/28/2011

Does this mean we will be getting a refund soon...??

[ILoveGreatDanes]

08:25 PM on 07/28/2011

I was crammed through my AT&T service. I had UVerse and Internet bundled, and I paid my bill month after month. I called for tech support one month and asked them what this $20/month "other charges" fee was. They told me I had been paying $5/month line insurance that I hadn't authorized for a whole year! I was furious. I got them to credit back the whole year.

[Veri]

07:50 PM on 07/28/2011

LOL. Private corporate efficiency at its finest. Super. So, how do we combat this? After all, a large minority in America do not believe in regulation. Guess they prefer being victims and paying more?

Government is too large. We do not need more regulation. After all, it prevents 'innovations' such as cramming... LOL.

[bc161]

05:21 PM on 07/28/2011

In other words when you de-regulate corporate american finds a way to screw you one.

[Steelsil]

05:13 PM on 07/28/2011

My company stopped doing business with Verizon because they were unresponsive about our problem of being crammed through them.

[teachone]

04:13 PM on 07/28/2011

Better solution for you all, much more economical. Get rid of AT&T and the cell phone providers for good, all a bunch of crooks!! Get a bundle deal through Charter, Comcast or other provider, with unlimited long distance,cable and internet, have specials for $60 month, basic cable, internet and unlimited calling pkg. Purchase a prepaid wireless phone, about $15 a month. Use the home phone for most calls and use the prepaid as an emergency use phone only backup for when you are out and about. You do NOT have to let these companies OWN you and take advantage of you, fight back!!!!