Multimillion dollar telefraud ring busted in USA and India.

Good news! There are now 56 less chances for you to be scammed over the phone thanks to the bust of a major international telefraud ring. 24 fraudsters from the U.S. will be spending time in jail. Another 32 co-conspirators from five crooked companies in Ahmedabad, India were indicted in relation to the scheme [...]

Pre-paid phone card companies fined $30 million for deceptive marketing.

The Federal Communications Commission (FCC) found that six pre-paid phone card companies had failed to inform their customers of their precise call charges, and the fact that all charges could be changed without warning. The FCC found that Locus Telecommunications Inc., Lyca Tel LLC, NobelTel LLC, Simple Network Inc., STi Telecom Inc. and Touch-Tel [...]

$1 Million Fine for Telecoms Firm Accused of Cramming and Slamming

In 2017, the Federal Communications Commission (FCC) found long-distance carrier Advantage Telecommunications to be in violation of its “truth-in-billing” rules. “Cramming” is when a telecoms service provider adds, or allows a third-party to add, unauthorized or unsolicited charges onto a customer’s bill. The FCC found that Advantage Telecommunications had adopted cramming practices, failing to [...]

NorVergence Inc.—court writes off 1,600 worthless telecoms contracts.

NorVergence claimed that it could provide customers with years’ worth of major savings on their telephone, cellular and internet bills. It also promised unlimited long-distance and cellular minutes, free of charge. The company was able to provide a few early customers with discounted services, only by using proceeds from sales to new customers. NorVergence [...]

$25 million fine for AT&T after data breach in Mexico.

Calls from Spanish-speaking AT&T customers in the US are handled by their call center in Mexico. After a suspected data breach at the call center, the Federal Communications Commission (FCC) launched an investigation. This investigation found that employees at the call center had accessed and sold customer account data. It found that protected account [...]

$29M fine for telecoms companies who scammed Latinx customers.

After receiving over 140 complaints from disgruntled customers about deceptive and fraudulent activity, the Federal Communications Commission (FCC) turned its attention to long-distance service providers Cytel, OneLink Communications, TeleDias Communications, and TeleUno. RCR Wireless journal claims that although these four businesses have separate operations, they are in fact interrelated. The FCC has proposed a [...]

Etisalat DB fined 70 billion rupees for foreign exchange violations.

Telecoms service provider Etisalat DB was fined 70 billion rupees for various violations of the Foreign Exchange Management Act (FEMA) in the 2G spectrum allocation scam. This scam concerned the unfair allocation of 2G access to Indian businesses. In the case of Etisalat DB, the company was fined for suspected contravention of foreign exchange [...]

Permanent Lifeline ban and $30 million fine for Total Call Mobile.

Since 1985, the Lifeline program has provided discounted and free telephone services to low-income customers. This service is funded by the Universal Service Fund and ensures that through a telephone connection, all Americans have similar access to job opportunities, their families and the emergency services. Around 18 million people who are eligible for food [...]

T-Mobile—report states fraudulent sales are rife.

Consumer and labor group Change to Win has reported overly-aggressive sales targets and intense pressure at T-Mobile. The report states that such sales targets lead to incentives that put customers at risk of fraudulent sales. These incentivized activities include sign-up to unsolicited services, sale of unrequired equipment and addition of telephone lines to customer [...]

Fraudulent phone charges—Verizon and Sprint fined $158 million.

When a telecoms service provider adds, or allows third-party companies to add, unauthorized or unsolicited charges onto a customer’s bill, this is known as “cramming”. Verizon and Sprint crammed their customers’ bills with millions of dollars’ worth of charges for premium text messaging services. Most of these monthly charges were $9.99, but others ranged [...]