There are many deceptive schemes that third parties use to extract money from consumers based on their residential telephone service. One of those schemes is called “cramming.” This happens when unauthorized surcharges and levies are placed on your phone bill. Many people who have heard of this scam believe that it is done only by dishonest telephone companies. In truth, it can also be done by unscrupulous individuals.

Below, we’ll describe how cramming works and the manner in which it is done. We’ll also describe how the charges will appear on your bill so you’ll know what to look for. Lastly, we’ll provide a few tips that will help you avoid becoming a victim.

How The Ploy Works

One of the strategies that crammers use is to entice people to call a toll-free number to join a club or request a “free” membership. Once you enroll into the club, the third party will begin charging a monthly fee to your landline connection.

Another method crammers use is to lure you into calling a 900 number to claim a prize that has supposedly been reserved for you. Calling the number carries a high per-minute rate – often as high as $2 per minute. You’ll be placed on hold as the minutes advance. Before long, your “free prize” has become expensive.

One of the most deceptive techniques is to send an offer to people through the mail. If the recipient fails to decline the offer, a charge is placed on his or her telephone bill. The recipient may notice the line item on his or her bill, but not realize its source. It’s difficult to identify, so they end up paying the charge rather than disputing it.

How Do The Charges Appear?

The line items associated with cramming are usually vague. They’ll often appear as “membership” or “service fee.” The problem is that it is practically impossible for consumers to connect “membership” or “service fee” with a particular organization. Because they cannot identify the source, they write a check to pay for it. Occasionally, you’ll see the item appear as “voicemail.” Most residential telephone service providers offer free voicemail with their calling plans. So, if you notice that line item, dispute it.

How To Avoid Being Victimized

You should review your phone bill closely, especially if your usage varies month by month. Take a look at each line item to make certain you can identify the source. Look for calls that you don’t remember placing and services that are unfamiliar to you. If you notice these items, call your telephone provider and ask them to clarify. Also, be wary of entering contests, joining clubs, or claiming “free prizes” offered by companies that are unfamiliar to you. Lastly, don’t ignore small charges. A lot of crammers try to operate without attracting attention by charging thousands of people a few dollars at a time.

Cramming is deceptive. While it is not technically illegal, the FCC tracks the activity. If you notice that mysterious charges have been crammed onto your residential phone bill, contact your telephone service provider to alert them.

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Category: Computers and Technology
Keywords: telephones, landlines, cramming, phone cramming, phone scams