Consumer Protection: How To Reduce Your Risk Of ‘Cramming’

Featured in this Show

• Experts: Read Phone Bill Carefully To Avoid Becoming A Victim Of 'Cramming'

  Download

  For consumers with a cell phone or a landline, taking some time to look over monthly bills to make sure that there are no mysterious charges could prevent a kind of fraud known as “cramming.”

  Cramming is the practice of adding unauthorized charges to a phone bill which then gets paid, often automatically.

  “It’s tiny little charges that the consumer often just won’t notice are there,” said Michelle Reinen, the director of the Bureau of Consumer Protection of the Wisconsin Department of Agriculture, Trade and Consumer Protection.

  Reinen said that those fraudulent charges often appear in what seem to be innocuous categories:

  “They’ll be tacked into miscellaneous places, they’ll have short little titles,” said Reinen. “They just won’t be clearly defined as to what those charges are.”

  A common amount of a crammed charge is $9.99, “or some small amount that you’re just not going to notice,” according to Reinen. It might not seem like a lot, but if the charge is there every month indefinitely, it will add up.

  Phone carriers aren’t the ones actually doing the cramming. Their billing systems are set up to allow for third-party billing for add-ons like ringtones, apps, or donations to charity through texting.

  Consumers can enlist their carrier’s help in avoiding these charges. Reinen advised that customers ask their carrier to put a third-party billing blocker on the account, which then functions as an obstacle to crammers. She said that many offer the service for free, so contacting the carrier is a good first step.

  Reinen warned that even with the block in place, vigilance is necessary.

  “You should still monitor, even if you have that,” she said, “Systems break down, and things can happen. So still be monitoring your bill to make sure (the block) is there each month, and that you’re not getting these additional charges.”

  It’s also important to proactively find out what the carrier’s policies are for refunds for fraudulent charges. Sandy Chalmers, the Administrator of the Division of Trade and Consumer Protection, said that with pop-up ads, particularly in cell phone games, it can be very easy to accidentally opt into something that can result in a charge.

  The Bureau of Consumer Protection also warns: “Unsolicited text messages could be sign of a scam. A text message from someone you don’t know could be a signal that you might be signed up for a service you didn’t order or agree to. Your best line of defense? Check your phone bill regularly for mystery charges.”

  Consumers can file a complaint through the Bureau. Forms are available in English, Spanish or Hmong.