Cramming is a form of fraud in which small charges are added to a

bill Bill(s) may refer to: Common meanings * Banknote, paper cash (especially in the United States) * Bill (law), a proposed law put before a legislature * Invoice, commercial document issued by a seller to a buyer * Bill, a bird or animal's beak Plac ...

by a third party without the subscriber's consent, approval, authorization or disclosure. These may be disguised as a tax, some other common fee or a bogus service, and may be several dollars or even just a few cents. The crammer's intent is that the subscriber will overlook and ultimately pay these small charges without them knowing what it's all about. According to the U.S. National Association of Attorneys General, cramming was the 4th most common consumer complaint of 2007 in the United States.

Types

There are various forms of cramming.

Phone cramming

Phone cramming is the practice of placing unauthorized charges on a telecommunication subscriber's home or mobile telephone bill. Cramming is most common in the US, where the breakup of the Bell System left subscribers with different vendors for local and long-distance service. LEC billing consolidated charges from multiple vendors on one bill, but opened an opportunity (which does not exist elsewhere) for fraudulent vendors to add their own charges to the consolidated bills. This is not the same as

telephone slamming Telephone slamming is an illegal telecommunications practice, in which a subscriber's telephone service is changed without their consent. Slamming became a more visible issue after the deregulation of the telecommunications industry in the mid-19 ...

, where an existing vendor is replaced with a rival without the client's informed consent. In the UK all the UK mobile operators have a third party direct to bill scheme (chargetomobile 'payforit') controlled by the Payforit Scheme Rules which prevent unauthorised charging. In the USA an effort to prevent instances of cramming, some members of the third party billing industry have implemented screening and monitoring measures to identify and eliminate crammers. Some companies offer consumer protection websites to help consumers better understand their phone bill and detect cramming as soon as it occurs. The

Federal Communications Commission The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdicti ...

(FCC) estimates that cramming has impacted tens of millions of American households.

Web cramming

Web cramming involves billing consumers for a web page they did not even know they had.

This is most often accomplished when criminals develop new web pages for small businesses and
non-profit group A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
s for little or no expense. While advertising their service as free, these criminals actually engage in unauthorized phone charges on their victim's accounts. The most common scam involves "rebate checks." These checks, when cashed, transfer the customer's
Internet service provider An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privat ...
, placing monthly service charges on their telephone bill. This is made possible because
telecommunications companies A telephone company, also known as a telco, telephone service provider, or telecommunications operator, is a kind of communications service provider (CSP), more precisely a telecommunications service provider (TSP), that provides telecommunicat ...
provide the service of being able to collect bills for companies that perform a service over the telephone.

Preacquired accounts

Another is "preacquired account telemarketing fraud", cramming of unauthorized charges by telemarketers who have bought or obtained consumer account information prior to the telemarketing call, sometimes from the consumer's own bank.

Fighting cramming

Phone companies like

Verizon Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas ...

respond by removing cramming charges from a consumer's bill upon request, and will cease business with the company that crams. Verizon, at the customer's request, will put a Cramming Block on the customer's account, that prevents third parties from adding charges. All the UK mobile operators have a third-party direct-to-bill scheme (chargetomobile 'payforit') controlled by the Payforit Scheme Rules which prevent unauthorised charges.

Notable cases

In 2005,

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Soldier A soldier is a person who is a member of an army. A soldier can be a conscripted or volunteer enlisted person, a non-commissioned officer, or an officer. Etymology The word ''soldier'' derives from the Middle English word , from Old French ...

Richard Martino and Captain Salvatore LoCascio admitted to running a cramming operation. Following a

investigation, in October 2010, Verizon announced that it would refund up to $50 million to its customers to offset cramming charges. In October 2014, AT&T Mobility agreed to pay $105 million in refunds and penalties for cramming for premium-rated short messages; the agreement was the largest such settlement in history; AT&T was "accused of keeping at least 35% of the fees, as well as obscuring the charges on bills and preventing customers from securing full refunds."

References

{{Scams and confidence tricks Consumer fraud Internet fraud Personal finance Text messaging