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Ofcom slaps premium rate industry - Ofcom is targeting telephone network operators in a crackdown against rogue operators that rip-off customers with expensive premium-rate phone calls.

This tough stand follows growing concerns about the fraudulent and misleading use of premium rate services including rogue internet diallers which re-route dial up internet connections onto premium rate numbers without customers' knowledge or consent.

These numbers - which begin with 09 and cost up to £1.50 a minute on a BT line - are typically used for TV vote lines, competitions, adult services, chat lines, mobile phone ring tone downloads and interactive TV games.

However, an increasing part of the £830m a year industry is being hijacked by crooks who think it's an easy way to make money. As part of a wide reange of measures designed to crack down on rogue operators, telecoms regulator Ofcom wants to delay payment to all service providers for at least 30 days. This would give staff at ICSTIS - the premium-rate regulator - time to investigate complaints into whether or not a service provider was running a scam.

Ofcom wants all revenues to be frozen during any ICSTIS investigation - and if necessary for a further three months after an investigation is complete - to ensure that there is money available to repay anyone ripped off by the scammers.

Ofcom also wants network operators to keep more detailed information on the service providers they deal with and to increase the maximum fine of £100,000 against those found to be running bent services.

Said Ofcom chief exec Stephen Carter: "There is a clear need for action here. These are necessary changes to ensure consumer confidence in the premium rate industry for the long term."

Some of the proposals put forward by Ofcom today are already being introduced while others will be subject to public consultation during next year.

If all this is too scary, punters can contact their own telco to get premium numbers blocked. For instance, BT will block all calls to premium-rate numbers for free. But if you like to vote in "I'm a Celeb" or "X-Factor", you can pay a couple of quid a month and block calls selectively.

News reported by The Register - Published Thursday 9th December 2004 11:38 GMT by Tim Richardson

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BT blocks 1,000 rogue dialler numbers - BT is once again writing to its 1.8m dial-up internet users warning them to be on their guard against rogue diallers. In the last three months the UK's dominant fixed line telco has blocked 1,000 numbers which it reckons are being used to run premium-rate dialler scams.

In July, BT said it would take action against rogue dialler companies which defraud consumers by secretly changing their computer settings so they call a premium rate phone line instead of their usual ISP number.

Despite taking this "block first, ask questions later" approach, BT has now dealt with 45,000 cases where customers have run up inflated phone bills because of rogue diallers. Another 9,500 cases are waiting to be resolved.

As a result, BT is once again writing to its punters to remind them how to prevent becoming victims of these scams.

Said BT bigwig Gavin Patterson: "BT is doing everything in its power to stop this menace. We have taken the decision to block numbers suspected of being associated with diallers as soon as we are alerted to a problem.

"We will be emailing all of our dial-up customers again to give them advice on how to avoid falling victim to a dialler, because customers need to take action as well to protect themselves, as we believe many cases aren’t fraud but are due to a lack of awareness from customers."

News reported by The Register - Published Tuesday 5th October 2004 14:11 GMT by Tim Richardson

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Council targets mobile chiefs in prostitution row - Westminster Council has taken the bizarre step of urging residents to cold call mobile phone chiefs over their alleged failure to help remove prostitutes' calling cards from the area's public phone boxes.

The council has distributed cards with the names and business numbers of the heads of Vodafone, Orange, O2 and others to all residents, suggesting they call and make their feelings plain.

Under a 2001 agreement with BT, landlines advertised on the cards are cut off. But the council is outraged that mobile operators will not enter into a similar agreement.

"It's unfair to point at mobile networks and say they are responsible for prostitution," said Jack Wraith, executive secretary of the Mobile Industry Crime Action Forum, the industry body set up to combat criminal use of communications.

"Terminating numbers on the say-so of I don't know who isn't possible under the current regulatory framework. BT deals with fixed lines and their situation is legally very clear [about cutting off customers], but the mobile network is not so easy."

But Kit Malthouse, the deputy leader of Westminster council, strongly disputed this explanation.

"We've had meetings with [industry regulator] Ofcom and there's no problem with barring numbers; it's a fig leaf to cover themselves," he said.

"We've been trying to get these companies into talks for the last five years and only one has shown any interest at all. The inaction is what's driven us to this measure."

Malthouse pointed out that it costs the council hundreds of thousands of pounds to clean up the millions of cards posted in phone boxes each year.

BT's crackdown on the numbers led to an initial fall in the use of prostitutes' cards, but the gangs running the sex trade simply switched to mobile numbers, which can also be replaced more cheaply.

One of the operators, Orange, said that part of the problem is the ease of connections.

"It is our belief that if phone numbers are barred, the individuals concerned will merely buy a new sim card because they cost relatively little in the high street - around £10," the firm said in a statement.

"The new number will also have to be advertised, and so this may actually increase the amount of phone box cards in circulation and the negative aspects associated with them."

News reported by WhatPc - Iain Thomson, 26 Aug 2004

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Rep. Schrock resigns after 'gay phone sex call' surfaces on web - August 31—Rep. Ed Schrock, a two-term Republican congressman from Virginia, announced that he would resign abruptly today, citing unspecified allegations.

Advertisement Those allegations were that he was gay, and that several voicemail messages he left on a phone sex service came into the possession of gay activists, who posted one on their blog. Schrock said only: “In recent weeks, allegations have surfaced that have called into question my ability to represent the citizens of Virginia’s Second Congressional District.”

He would not elaborate on the allegations. Over the past two weeks, a Washington-based Web site has spread claims that Schrock was gay. Rogers said on his Web site that Schrock had been recorded several years ago using a telephone service on which men place ads to arrange liaisons with other men, the Washington Post reported on page 2 Tuesday.

Michael Rogers, who runs the site, told a local paper he posted the allegations because of what he described as Schrock’s anti-gay voting record. “No one doubts that it’s him,” Rogers said. “It’s pretty clear that he’s trying to hide from people what the truth is. He had no way out of this.” Rep. Schrock was one of several dozen to cosponsor the Federal Marriage Amendment of July 2004, which aimed to constitutionally prohibit gay marriage. The alleged tape one of Schrock’s calls is now available on the Internet, at BlogActive.

Raw Story's transcript of the tape is as follows (click here to access the audio file). "Uh, hi, I weigh 200 pounds, I'm 6'4" (inaudible) blond hair....very muscular, very buffed up, uh, very tanned, uh, I just like to get together a guy from time to time, just to, just to play. I'd like him to be in very good shape, flat stomach, good chest, good arms, well hung, cut, uh, just get naked, play, and see what happens, nothing real heavy duty, but just, fun time, go down on him, he can go down on me, and just take it from there... hope to hear from you. Bye."

Rep. Schrock was one of several dozen to cosponsor the Federal Marriage Amendment of July 2004, which aimed to constitutionally prohibit gay marriage. A ranking Daily Kos member noted, "The National Journal ties him as the second most conservative person in all of Congress in 2003, behind only Dennis Hastert. A strong family man with a wife and kids, Schrock was a co-sponsor of the Federal Marriage Amendment and opposes any possible rights for gay people, including non-discrimination in employment."

The Virginia Pilot reported in October 2000 that Schrock favored ending the Clinton administration's ''don't ask, don't tell'' policy on gays in the military, BlogActive noted. "He supports asking enlistees whether they have had homosexual experiences in an effort to to try to keep gays from serving. 'You're in the showers with them, you're in the bunk room with them, you're in staterooms with them,' Schrock said." Schrock has a 92 percent vote rating from the Christian coalition, a 100 percent voting record for the right to life movement, and a zero percent rating from the Human Rights Campaign.

Schrock said he would not seek reelection in a press release. "After much thought and prayer, I have come to the realization that these allegations will not allow my campaign to focus on the real issues facing our nation and region," Schrock said "Therefore, as of today, I am stepping aside and will no longer be the Republican nominee for Congress in Virginia's Second Congressional District." All three of Rep. Schrock's offices stopped taking phone calls on Friday. Here's some information on Schrock from his House biography.

Congressman Ed Schrock represents Virginia's Second District which comprises the cities of Virginia Beach, Norfolk (part) and Hampton (part) and the counties of Accomack and Northampton on Virginia’s Eastern Shore. He was sworn in on January 7, 2003 for a second-term. In Congress, Mr. Schrock serves on the House Armed Services, Budget, Small Business, and Government Reform Committees. In 2003, Mr. Schrock was chosen to serve as Chairman of the Regulatory Reform and Oversight Subcommittee of the House Committee on Small Business. In this capacity, Mr. Schrock works to address federal regulations and policies that hinder the ability of American small businesses to compete and provide excessive financial and paperwork burdens on small business owners.

Mr. Schrock also serves on four other subcommittees and the Postal Reform Task Force. In his first term in Congress, Mr. Schrock was elected President of the Republican Freshman Class. He founded and remains a co-chair of the House Navy/Marine Corps Caucus and the House Special Operations Forces Caucus. The Navy/Marine Corps Caucus was formed to advocate the issues important to the Navy and Marine Corps, their members and their families. The House Special Forces Caucus supports issues related to Special Operations Forces, including the Navy SEALs, Army Airborne, and Air Force Special Operations.

Ed Schrock was born and raised in Middletown, Ohio and is married to the former Judith Adnee Crawford of Long Beach, California. Judy is retired, after teaching children for almost thirty years, including teaching kindergarten in the Norfolk Public School System for fifteen years. The Schrocks have one son, Randy. They reside in the Witchduck neighborhood in Virginia Beach and are active members of Atlantic Shores Baptist Church. DEVELOPING...

*** Correction: An earlier headline said that Congressman Schrock had cosponsored the Defense of Marriage Act, which was in error. Schrock cosponsored the Federal Marriage Amendment, a more restrictive measure aimed at constitutionally banning gay marriage, in July 2004.

News reported by The - By John Byrne | RAW STORY EDITOR 2004

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Clampdown on dialler scam - A clampdown on a new internet scam involving costly premium-rate lines was announced yesterday after it emerged that close to 60,000 people have complained of being ripped off since the start of this year.

Following calls for more aggressive action to tackle the menace of so-called "rogue diallers," Britain's premium-rate watchdog said it was setting up a licensing system that would require all premium-rate internet services to be vetted and approved before they could operate.

The watchdog, Icstis, hopes this will keep out most if not all of the mainly overseas-based companies behind the fraudulent services, though the move is unlikely to quell the demands for the prosecution of firms which have already made millions of pounds from unsuspecting users.

Thousands of people have unwittingly run up huge phone bills after falling victim to the scam, which tricks home computers into dialling expensive premium-rate lines and is often activated by closing an unwanted "pop-up" window.

The number of rogue diallers infecting PCs has snow balled in recent weeks, with most people only discovering they have been stung after receiving their telephone bill. Some people have been hit with bills for more than £1,000. The scam involves software which surreptitiously replaces an individual's usual internet connection with one that dials a premium rate number typically charging £1.50 a minute.

The switchboard at Icstis has been jammed with calls from angry internet users, and the organisation is investigating dozens of companies, based in locations including Panama, Majorca and Florida.

Icstis said it had dealt with "upwards of 60,000 complainants so far this year, most dialler-related". And it underlined its tough stance by yesterday announcing it had fined Liechtenstein-based telecommunications firm DDD Com £50,000 for rule breaches and ordered it to compensate 466 people following complaints that the firm's premium-rate dialler had downloaded automatically on to their PCs without their knowledge or consent. In addition, access to the company's £1.50-a-minute service was barred for six months.

Industry insiders say the problem has been aggravated by recent relaxation of EU e-commerce safeguards.

Until two years ago, any premium-rate internet service had to come to Icstis for prior permission. But after the EU e-commerce directive took effect, this regime was stopped on advice from the Department of Trade and Industry.

Following talks with the DTI, Icstis yesterday announced it was reintroducing a licensing system. All companies wanting to run premium-rate services using internet dialler software will first have to obtain permission from the watchdog.

George Kidd, director of the industry-funded organisation, said: "We will only grant permission to those companies which satisfy our stringent requirements. These are being finalised but will cover key areas such as clear terms and conditions, user consent, information about how to delete diallers, and responsibility for customer refunds and Icstis fines."

The new system will mean British telecommunications companies will not be able to allocate premium-rate numbers to companies which run these services until they have seen written confirmation that permission has been given.

News reported by The Guardian - Rupert Jones The Guardian, Friday July 16 2004

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