Many cell phone customers don't do a line by line audit of their bill each month, and some unscrupulous companies are banking on that fact. If you do check out your bill and see an unauthorized charge for $9.99 for services like horoscopes and dating tips, chances are you've been crammed. Cramming is where companies charge your cell phone bill for services supposedly requested via text message. Some such charges are legitimate - such as those texts sent to donate money to the Red Cross after a natural disaster - but many are fake, either never having been requested, or requested under false pretences. Many people like to be able to pay for services via their phone bill, such as those who don't have traditional bank accounts. The wireless carriers say that it is not a growing problem, and say their self-policing is working to ensure the issue is contained. Philip Ziperman, an assistant attorney general in Maryland's consumer-protection division doesn't agree. "The complaints we receive really are just the tip of the iceberg," said Ziperman. "The concern in my office is that as people increasingly use their mobile phones to pay for services, the problem is only going to grow." Currently wireless industry best practice requires companies to get a double opt-in from users before sending such texts and adding charges. This usually takes the form of a web site based form, requiring the user to reply to a text for the second opt-in. Companies flaunting the guidelines tend to ignore the second opt-in requirement and either send texts or just add charges to unsuspecting users. "The cellphone industry is like the Wild West right now," said Jim Chilsen, director of communications for the Citizens Utility Board, an Illinois-based consumer advocate. "Consumers don't even understand this is happening," said Kate Whelley McCabe, an assistant attorney general in Vermont. Whelley McCabe's office released a survey of more than 800 consumers who were asked to review third-party charges on their cellphone bills. Almost 80 percent of them were unaware that outside companies could add on fees to their cell phone bills, while more than half found charges they didn't know about. The FTC have sued Georgia-based company Wise Media for allegedly placing unauthorized charges of $9.99 a month on phone bills for text-messaged dating advice and horoscopes. Consumer advocates argue that this case and other like it in various states show that self policing by the industry isn't working. "Good guidelines can't replace reasonable regulation," said Chilsen from the Citizens Utility Board. So what can consumers do to prevent this? ReplaceYourCell.com recommends going through your monthly bill even if it is paid by direct deposit, to check if any unauthorized charges have been slipped onto your bill. And if you do get a suspicious text, you can enter the phone or code number into the SMSwatchdog.com website to see whether others have reported the number. You should also report the offending text to your cell phone carrier - some have special numbers that you can forward the offending text to, so they can investigate. Finally you can dispute any charges you didn't authorize, and if your carrier says it's not their problem, you can file a complaint with the FTC.
