Current List of Phone Scams

Pager Scam
Do you have a pager or an E-Mail address?....BEWARE!
One of the newer scams involves pagers and E-Mail.You get a page and you notice a number with an area code different from your own.....must be important. So you return the call only to find it's a recording. In reality, you've just been SCAMMED! The call probably went to one of several new area codes in the Caribbean, is billed at an international rate, and the longer you stay on the line, the more it costs. What you'll hear is a lengthy recording, and the meter starts running as soon as you make the connection. The page is generated by a computer dialer, and the cost goes to the return caller, you!

E-Mail Scam
A company has been sending unsolicited and elegantly worded e-mail messages threatening legal action unless the recipient pays an unspecified overdue account. The message then gives a name and number in the 809 area code to call for further information. Callers are then led to believe they are talking to a live person, but in fact it is a clever recording that responds to the caller's voice. The call is designed to keep the caller on the line for as long as possible. The call can accumulate a high bill. (Source: CFCA 10-25-96)
One good rule of protection is: If you don't recognize a number do not respond, be wary. Also, check the front of your local telephone book for area code verification.

Cramming
Recently,there has been growing concern about companies that bill consumers for telecommunications services they did not order or use. This practice becaome known as cramming because, quite often, the charges are positioned in the consumers bill such that they may be easily overlooked.

Bell Atlantic is very concerned about the rise in complaints of this practice. Their experience has shown that a customer can be crammed as a result of just accepting a collect call, filling out a sweepstakes or raffle ticket or responding to voice prompts in the course of placing a call.

The following tips will help customers detect cramming early and avoid becoming a victim of the practice:

Helpful Tips About Cramming

Early Detection

  • Review your telephone bill thoroughly for all charges.
  • Question the telecommunications service provider (whose name and logo appear on the page of the bill) of any unfamiliar charges.
  • Notify your local telephone company if you do not recognize a charge, or are unable to resolve a disputed charge with the telecommunications service provider.
Prevention
  • Do not divulge personal information, such as telephone number, credit card number or social security number on sweepstakes or raffle tickets. Quite often this information is not secure and may be used for reasons other than intended.
  • Keep a copy of any applications you fill out. You will have a reference in the event of any disputes.
  • Avoid filling out entries for contests that seem vague in nature.
  • Do not accept collect calls from unfamiliar persons.
  • Do not return calls to unfamiliar telephone numbers.
  • Beware of faxes, e-mail, voice mail and pages requesting a return call to an unfamiliar number.
  • Know the location of the area code which you are dialing. If you are unfamiliar with the area code consult your Bell Atlantic directory.
  • Avoid placing calls that have an unfamiliar dialing pattern. Local, domestic and international dialing is explained in the front of your Bell Atlantic directory.

    • Pay close attention to voice prompts on a call, they may be asking you to accept charges for the call or other services.
Gerber Baby Food Scam
The Better Business Bureau has advised of a scam in which unknown parties claim Gerber Baby Foods has lost a class action suit and will pay a $500 savings bond to children under 12 who were born between 1985 and 1997. Notices have appeared instructing parents to send copies of their child's birth certificate and social security number to an address to be processed. The notice promises compensation once the information is sent. Gerber, in a news release to the BBB, has announced there has been no such settlement [Source: BBB, 9-97].

This type of activity is a form of true name fraud. True name fraud occurs when someone's name and personal information is stolen. By obtaining social security numbers, birth certificates or drivers license information, a criminal has enough personal information to purchase items, using your name. Purchases such as jewelry or electronic equipment can be made via an application, without a picture ID and can be sold quickly on the street. It also can be used to establish fraudulent telephone service or to add service to your account which can be used in a criminal manner. In any case YOU get the bill. This scam is difficult to counter because the information is true and the perpetrator becomes YOU! How Can You Defend Yourself...

    1. Be aware of the company or individual to whom you give personal information.
    2. Keep a copy of applications you fill out.
    3. When filling applications in malls, find a non-critical item and change it each time.
    4. Avoid filling out entries for contests that seem vague.

      5. Notify your account holders and law enforcement immediately if you suspect fraud.
You may have already won, and other common lies!
Scam Artists are especially active during holiday seasons. All consumers should be wary of a call from someone who:
  • Guarantees a credit card with a high credit limit just in time for holiday shopping, but requires an up-front payment
  • Claims to represent a charity you are not familiar with
  • Says you need to buy something or pay a fee to win a prize
  • Claims you have won a prize and you have not entered a contest
  • Asks for your credit card, calling card, bank account or social security number
  • Uses a company name that is intended to sound like a government agency or a well-known company
  • Pressures you to act on an offer the same day
  • Acts as if he or she has done business with you before
  • Is unwilling to send you written info on an offer or give references
Social Engineering:
There has been a recent toll fraud scam involving PBX systems which can lead to high long distance charges. In this scam the fraudster claims to be a telephone service technician performing a test on the line. He asks that you transfer him to an operator by pushing 9,0,# and then hang up. On some business systems, this can give the caller an outside line that can be used to make long distance calls. Toll charges will then be billed to the owner of the PBX as directly dialed calls. This cannot occur on residential phone lines. This is a classic social engineering scheme.
Following are tips to combat Social Engineering of your PBX:
  • Be aware of unknown people asking your cooperation in testing the telephone line.
  • Probe the caller for information such as employees ID number, supervisors name ,or call back number.
  • Telephone service technicians will rarely ask for assistance in testing the lines of a PBX. Any such request should be done on a call back basis.
  • Never transfer a call outside your PBX if you are unsure of the persons identity. Arrange a call back to that persons line.
  • Telephone companies or law enforcement officials will never ask customers to be a part of a testing procedure. Telephone technicians can conduct tests without the customers assistance.
  • Contact your service provider immediately to report this activity.
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      Slamming:
      Imagine you receive a call from a telemarketer offering a great deal on telephone service. You later pick up your telephone and make a long distance call. When the bill arrives you find that the name on the top of the long distance bill page is not the company you picked as your long distance provider. Well guess what, you've just been slammed!

      Slamming is the unauthorized change of a subscribers telephone service provider without permission. The "slammers" hope the victims do not notice the change and proceed with payment of the bill. Often times the telephone charges are at a much higher rate. Although slamming most frequently impacts long distance service, it can also occur as a change to local service.

      To combat slamming, customers can contact their local business office and request a freeze on their selected carrier. The freeze is free of charge and will prevent any future unauthorized carrier changes. Once a freeze is put on an account, changes can only be made at the customer's request.

      Following are a few tips to prevent becoming a victim of slamming:

      • Review your monthly telephone bill for any unauthorized charges.
      • If unauthorized charges are found, contact your local business office immediately.
      • When contacted by telephone with a service offer:
      • Ask for a call back number, so you are sure they are, who they say they are.
      • Ask for the information in writing. A legitimate provider will mail information to you.
      • Call your local telephone company and request a freeze on your selected carrier to prevent any future problems.
      Remember Grandma's advice: If it sounds too good to be true. . . it probably isn't!

      Slamming Scams can come in many forms. Here are some other examples...

      Bell Atlantic Calling...
      Slamming Scam (6/97)

      Beware of callers who promise one telephone bill for local & long distance service. It has been reported that fraudsters posing as Bell Atlantic representatives are offering lower rates and a combined local and long distance telephone bill. The caller informs the customer that the telephone call is being recorded. The recording is later used as authorization to change the customers long distance carrier. This is a social engineering scam, known as "slamming".

      Currently, Bell Atlantic cannot provide long distance service within its region. That may change in the future. But for now, it is not possible. BELL ATLANTIC IS NOT MAKING ANY SUCH CALLS. Anyone receiving a call of this nature should hang up or ask the caller for his/her name and a number where he/she can be reached. The caller will generally hang up when challenged in this manner. If you feel you have been a victim of this scam, notify your local residence or business service center. The toll free numbers are located in the front of your Bell Atlantic telephone directories.

      Computer Nappers Social
      Engineering Scam (2/97)

      Home computer owners beware! Be very cautious of telephone calls alleging that you have won a computer software package or offers for free computer software. If you are not sure that you are speaking with a reputable software company, DO NOT TELL THEM YOU OWN A HOME COMPUTER!

      Here's how the scam works: The caller advises that you have won a software package or offers the package free as part of a promotion. They then ask questions about your computer. They will ensure you that they need the information for software compatibility. Next they will ask when someone will be at home for delivery and acceptance of the software package. Once they have your schedule, you are susceptible to a home break-in [* Source: RCMP Technological Crime Section. Information Source: Reprint from Communications Fraud Control Assoc., January, 1997].

      Here are some tips to protect yourself and your business from this type of fraud:

      • Know that you may be a potential target for this type of fraud.

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      • DO NOT provide any unnecessary information to callers unless you know who they are. Be polite and helpful, but know your limitations. When in doubt, make arrangements to call back and check company listings for phone number verification.

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      • Never provide PIN or passwords to anyone.

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      • Telecommunications fraud is expected to reach $4 billion in 1997 -- an increase of $300 million or about 12% over the previous year.

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      • The amount of long distance charges stolen through customer premise equipment (CPE) in the U.S. is expect to be $1.426 billion in 1997, down from $1.5 billion (1996).

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      • While the number of "victims" has increased, average losses caused by customer premise equipment (CPE) phone fraud should drop to about $16,500 per incident in 1996. The average loss per incident was $17,000 in 1996.

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      • The cost to users in "800" line charges -- run up by thieves and attempted thieves -- is estimated to reach at least $205 million in 1997.

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      Trends:
      A startling increase in theft of domestic long distance. Hackers are becoming more sophisticated and increasingly "loop" through users' systems to avoid detection. Example: They penetrate a PBX in Sacramento CA, call through a voice mail system in New Jersey, then make calls internationally from the New Jersey PBX.
         
      A 30% increase in casual calling toll fraud. Example: New start-up companies are having a particular problem with this. A hit of only several hundred dollars becomes a major blow to a struggling service provider. For instance a new comer could be left holding the bill for more than $700,000 when a customer falsifies credit, buys service for a few months, and then runs out. This effects both the service provider and the customer, as well. The figures on casual call toll fraud are expected to remain the same as 1996.
    Customer Premise Equipment (CPE) Toll Fraud Costs (1997 estimates)
        Management and staff time lost incurred by victims of phone fraud: $23.8 million.

        Consultant and attorney fees and costs incurred by phone fraud victims: $14.3 million

        Cost of management and staff time incurred by interexchange carriers (IXCs), local exchange carriers (LECs) and other vendors: $28.5 million

        Consultant and attorney fees and costs incurred by IXCs, LECs and vendors: $14.3 million.
         

        Total Annual Direct Cost of CPE Fraud: $1.42 Billion