Internet scams

David Segal (The Haggler) in his 8/22 blog about "deceptive, mystery charges" reminded me of a similar internet scam I've fallen for twice. In each case the $10 a month bill was buried in my Verizon statement.

In the first case I'd tried to download a free ringtone in 2006 shortly after I got my cell phone. I never did figure out how to install the ringtone, but apparently somewhere in the process I went through pages that agreed to a $10 a month charge. When I called Verizon for an explanation of this charge, they disclaimed all responsibility or knowledge of the charge, but did tell me that I could stop the charge by texting the word "stop" to a certain phone number. This did indeed stop the charge, but still left them with my initial $10.

The second one was during world series time last year when I fell for one of those "are you smarter than a xxx" advertisements for an IQ test that you see all over. After answering four dumb questions, they send a follow up message by text that requires a response. Again somewhere in the process they sneak by an agreement to pay them $10 a month. This time I got Verizon to give me the 800 number of the billing agency, who in turn gave me an 800 number for another outfit for complaints. After pursuing it that far I filed a complaint with the Indiana state attorney general's consumer protection office. Either as a result of the complaint or my calls, I got the $10 refunded.

These instances have in common that the charge is user is unaware of the agreement, that the charge is difficult to discover, and that once you do discover it it's hard to find out how to remove it. The initial collection agency, Verizon, is a mere front for another collection agency, so you have to get through two help lines at a considerable cost in time to even get to the original company. They also have in common the price, $10 a month. Apparently that's more than enough to fund their ubiquitous internet advertisements, though I presume Verizon and the collection agency also get a cut.

I wondered if there is some regulation that prevents them from charging more, but it's more likely that they just done consumer research to find that amount is the maximum they can slip by on phone bills and credit card reports without being noticed. Segals column says Senator Rockefeller is launching an investigation. I hope Rockefeller can come up with some legislative restrictions on this activity.