Consumer group: Beware of fraudulent 'cramming' fees on cellphone bills

Published: December 4, 2012 

— Illinois cellphone customers were ripped off in 2011-2012 for twice as much money as the year before for fraudulent "cramming fees," the Citizens Utility Board announced Tuesday.

Recent research indicates that scam artists are targeting Illinois cellphone users because of a new state law that bans cramming on landline bills, said Rajiv Ravulpati, CUB outreach coordinator during a news conference at the East St. Louis Public Library.

"This new data sounds an alarm that scam artists have declared an open season on Illinois cell bills," Ravulpati said.

Cramming occurs when third party companies demand charges on phone bills that customers neither ordered nor received. Only about one in 20 victims ever catches on to the fraudulent charges, he said.

"That's because crammers hide these relatively small charges among a forest of fees on the bills," he said.

CUB and a industry research firm called Validis reviewed nearly 5 million wireless lines nationwide, including more than 200,000 in Illinois.

The research showed that:

* Cramming charges averaged $3.76 per customer per month in Illinois, and $5.10 a month per customer nationally.

* The percentage of third-party charges that appeared fraudulent soared over the past year, climbing to 51 percent from 26 percent in Illinois.

* Illinois wireless customers were ripped off for about $1.4 million last year, while nationally the scam artists cost wireless customers nearly $60 million.

The best way to fight this type of fraud?

"Well, three simple words: Read your bill," Ravulpati said. "People should look at their bills every month to see what fees are on there."

In addition, consumers can go to CUB's "Stop Cramming Center" at www. CitizensUtilityBoard.org, which provides tips on preventing the scam, what they can do to if they've been crammed. There's also a special link to send messages to federal regulators encouraging tougher rules to fight cramming.

Contact reporter Mike Fitzgerald at mfitzgerald@bnd.com or 618-239-2533.

Contact reporter Mike Fitzgerald at mfitzgerald@bnd.com or 618-239-2533.

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