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Third Party Billers Responsible For Wireless Overcharges Well, the Lexicon of Fraud has a new entry: "Cramming". Although the word has been around for a while, it was officially inducted on July 30th, 2014 following a report from the U. S. Senate, The report openly criticized wireless companies for their failure to address unauthorized charges to the tune of hundreds of millions of dollars. The culprit? Cramming. So what is cramming? Well we can tell you this: it's no longer just pulling an all-nighter preparing for exams. In fraudulent speak, cramming is defined as the placement of unauthorized, ambiguous, and bogus charges on a bill. By slyly placing nebulous charges on cell phone bills, crammers, usually third party billers, dupe customers into overpaying for approved services, or paying fees for services neither requested nor delivered. The report was released by Senate Commerce Chairman, Jay Rockefeller (D., W.Va.) Even more scathing are allegations by the Senator's staffers claiming that the largest carriers: AT & T, Sprint, Verizon Wireless and T-Mobile US have actually benefited from these fraudulent activities by keeping 30% to 40% of the phony charges. Michael Altschul, General Counsel for the Wireless Association, issued a statement claiming most major wireless carriers had agreed to discontinue the majority of their dealings with third-party billers, who are deemed to be the initiators of the cramming fraud. Although Altschul said he believed the majority of the charges were actually approved by users, he stopped short of refuting any cramming allegations. Examples of approved charges include: special ringtones, horoscopes, instant gossip texts, or purchases associated with games played via social media sites like Facebook, where paying $9.99 to buy extra lives on Candy Planet is considered a bit steep even by today's standards. T-Mobile Senior Vice President, Andy Levin agreed that not every third party biller has acted ethically. A Sprint spokesman defended the decision to offer clients the flexibility of using their cell phones as a means of purchasing non-phone related services. He went-on, however, to confirm that Sprint will comprehensively investigate and address any issues. According FTC Commissioner Terrell McSweeny: "In the wireless arena, self-regulation has failed". This admission, along with the latest cramming allegations reinforce the need to rethink the stipend model many businesses have decided to employ regarding company cell phones. If hundreds of millions of dollars in charges have been levied against individuals, what amount can organizations expect to lose in bogus charges? Experts say that attempts to control access for Bring your On Device (BYOD) models might prove futile when it comes to cramming. In addition, because fraudulent charges are well-hidden, corporations can expect to lose billions no matter what wireless business model they employ. Sen. Richard Blumenthal (D., Conn.) said in a statement: "[The wireless carriers] almost certainly welcomed the revenue that third-party billing was generating for them. They might not have been happy about it, but the fraud sure benefited them." Now, more than ever it is imperative to seek the assistance of a reputable wireless cost management firm. Only a trained professional can be significantly effective in identifying overcharges and other errors and obtain refunds for them. When seeking a wireless cost management firm, the recommendation is to hire one who uses a contingency-based billing process. This ensures that companies will pay nothing unless savings are identified. With no regulatory overseers, and third-party involvement, wireless companies can continue to serve their own interests. Shouldn't you have someone looking-out for yours?
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