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The great SMS scam

Remember Kay Steele? She is the Weston woman whose email to me last July prompted a series of my Herald columns looking at one of this country's great scams, the phoney SMS scription. The fact that it has been backed by Telstra, Optus and other phone service providers has made it much greater than it could ever have been otherwise.

The response of readers and SMS scam victims to those columns was overwhelming, and it was quickly put beyond doubt that the charging of mobile phone users for suscriptions they did not order was not a matter of accident. Telstra and the others included the charges for these scam subscriptions on their bills, and they refused to accept that they were thus responsible for that billing and the service. What's in it for Telstra and the others? And has or does Telstra and the others give the scammers access to their customer base?

The rort has continued unabated since those columns, and the ACCC chairman, Graeme Samuel, has just entered the fray with a written statement. It was, I say, late support for the people the ACCC is charged, ultimately, with protecting. Here's part of Mr Samuel's statement:

"Australia's telecommunications sector has become so riddled with rogue operators, deceitful behaviour and scams it can no longer be ignored. Unless the industry recognises it has a problem and acts decisively to correct it, it may find change forced upon it by the courts, the ACCC, and its disgruntled customers.

"The laundry list of problems, from misleading advertising to unfair contracts and deceptive mobile phone competitions, has been allowed to proliferate by service providers, publishers and carriers, who have turned a blind eye while taking a slice of the profits."

Later in the same statement: "It is not acceptable for carriers to wash their hands of responsibility as deceptive operators use their networks to entrap phone company customers with unwanted, expensive and difficult-to-unwind subscription services."

Where have you been Mr Samuel?

Tell us about your encounter with this scam and your phone service provider protesting that it had nothing to do with it.

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Date: Newest first | Oldest first
This scam wasn't really an SMS scam, it was one of those "Cap Plan" rip offs. I was making my usual calls and SMS's while i was on the $79 cap with Optus, and i was still getting bills on excess of $150.00. They said that most of my calls were not covered under the cap. Well i blew my top and paid out the contract cause they mislead me and i wasn't going to pay $150 + per month to continue. I then went to Vodafone, $49 cap, never went over it once. Now i'm on the $69 cap cause i wanted the free blackberry phone, No dramas what so ever even though i upgraded with over 6 months left on my contract. Never again will i go with Optus for anything. Considering i had my home, internet and mobile with them and they wanted to rip me off, well they lost all my money.
Posted by Nafe, 13/03/2009 4:21:11 PM
I recieved my account from 3 mobile. My bill was higher than normal and upon checking, it listed SMS messages sent to me and billed to my account at $3 each. I didn't read them, as they were just junk and annoying, and deleted them straight away. I replied to two that I had not deleted with the word 'STOP' with no effect. I phoned 3 mobile and they stated it was nothing to do with them, and that I should take it up with the sender. (Yeah, HOW ? You don't know who's sending them and 3 mobile, won't give out customer details) I phoned the Telecommunications Industry Ombudsman's Office, who advised me to phone 3 mobile, as it was they who were billing me (generating the account) and not the sender of the SMS messages. I phoned 3 mobile and asked to speak to a supervisor. I was told that if I didn't want the SMS messages, then I shouldn't have subscribed to the service. I said that's just the point; I didn't subscribe to begin with. She asked; 'what have you done to stop the messages'. I told her I replied to the SMS's with the word STOP. She said; "You'll never stop the SMS messages with the word stop...you must use the word 'Unsubscribe'. So I tried "unsubscribe" and the messages finally stopped. I found myself caught in a telecommunications no-man's land being billed for a service I didn't request, by an anonymous provider, who could not be identified, which was my fault for subscribing to a service I didn't subscribe to and my delinquency for using the word stop in order to stop the SMS's. No company should be allowed to bill anyone anonymously either directly or through a third party provider.
Posted by Colin O., 13/03/2009 9:57:09 PM
Its about time someone was outspoken on this type of bullying by the big boys. Its also a shame that its too little too late for many thousands, and his words are just hot air at the moment with no enforcement behind them..
Posted by blogboy, 14/03/2009 6:56:22 PM
Fortunately i have never had this problem - whether that is because i dont ever use the sms service for ring tones, competitions or just good luck i dont know. But i agree with Colin O idea that these companies should not be allowed to bill people anonymously. These companies should have to bill you direct for the so called service - not through your mobile phone service provider. I would imagine that the phone scammers think they have the perfect arrangement - they are guaranteed payment through the phone provider and the poor consumer is left to fight it out as best they can.
Posted by senior sergeant smith, 16/03/2009 9:30:52 AM
I was with SOUL, they are the biggest rip off, they use to send me a SMS to tell me i had a missed call who never left a message and then charge me for the SMS. The only way i could stop this rip off was to take off my voice message recording. They never answered any complaint till i said i would report to the onbudsman. Nothing was ever fixed with billing etc. I cancelled the plan, paid an huge fee and went pre-paid with Optus. No Problems at all now, for $30 per month.
Posted by Buell, 16/03/2009 9:32:49 AM
hi Buell - i'm with optus prepaid. did you know if you change to turbo charge you get all this extra credit when you recharge. so for $30 recharge you get $300 credit. then you can use their me-2-you service and transfer some of the credit to another optus prepaid service. i transfer some of the excess to my husband so he hasnt had to pay for a recharge card for about 6 months. it is a great money saver. dont want to sound like an add for optus but just thought you might like to know about this prepaid arrangement.
Posted by senior sergeant smith, 16/03/2009 11:02:03 AM
The fact that you can put into effect a contract via SMS should be under question. As alluded to here today, simply replying to or accessing an unsolicited text message, can result in ongoing charges. Given that the service provider has no way of verifying that the owner of the phone was the one who agreed to the service, one would think they may be on shaky ground if they come demanding payment anyway. The simple solution would be to ensure that all such contacts must be agreed to either in person or via secure login to a website. With respect to unsolicited text messages where charges apply, a leave could be taken from the recent changes to direct marketing which has an “opt out” provision, but take it one step further and have an “opt in” only system. – if you truly want unsolicited messages you have to request them.
Posted by Directuer Sportif, 16/03/2009 11:31:54 AM
SMS Scammers are having a field day .. I had $5 removed from my account by "girls gone wild" .. the legals , government ..DID NOTHING .. mutlkiply that by 1000 & you have half a million dollars of thievery .. get the bastards.. get them NOW
Posted by average Joe, 16/03/2009 4:50:11 PM
When I had premium sms on my account, I rung optus and got the provider's number. I rung them and asked them to provide me with evidence on how I joined up with the service. They came back with the date, time, how I joined etc. It was my nephew who decided to use my mobile to get me a "free" ringtone. I could have strangled him as that "free" ringtone ended up costing me nearly $100 in subscription messages!!
Posted by Daniel, 17/03/2009 12:50:18 AM
I have had a similar problem with Vodafone. I SMS’d a pin to 193233 to claim some sort of reward. Clarion Marketing (the service provider) for the “Moby Planet Campaign” then sent me two text messages within a minute. I then sent them a "STOP" message. For this, $9.74 appeared on my Vodafone bill!! I complained to Vodafone, who told me: “Vodafone takes it privacy obligations very seriously and in accordance with our Privacy Policy we have not supplied your information to any third parties including the Premium TXT company responsible for the service. Vodafone only provide the network connection and billing capability. For disputed charges you will need to contact the company managing the Premium TXT number. As you have been charged by the Premium text Company for these messages, you will need to speak to their Customer Service Department for resolution.” I have left three messages on 1 300 366702; but no one has responded to me.
Posted by Mike, 18/03/2009 4:37:09 PM
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Jeff Corbett
Bend the online ear of the Hunter's most provocative columnist.

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