SBS XII: Getting Crammed, Slammed and Scammed in the 90's

Have you been slammed or crammed? If you're not sure, you may need a crash course in customer fraud in today's fiercely competitive telecom industry. Like skilled pickpockets, slam and cram artists grab your money before you know it's gone. Cloaked in a variety of disguises, foiling them takes caution, vigilance and prompt action.

Slamming

Slamming is the unauthorized and illegal switching of your telephone service provider without your knowledge or consent. During the last five years, the incidence of slamming has exploded. And complaints filed with the Federal Communications Commission (FCC) have grown from 1,867 in 1993 to more than 20,000 in 1997. Experts predict slamming will continue to grow as competition increases in long distance and local service calling.

Slamming can occur under the guise of something as simple as a sweepstakes entry or unexpected check in the mail. In each instance, slammers use the customer's signature as proof the service change was authorized when the contest entry is submitted or the check is endorsed. Be sure not to sign anything until you have read and understand all the fine print conditions.

Protection does exist for consumers who have been slammed. Under new rules adopted by the FCC, intended to discourage this deceptive practice by removing financial incentives, victims can stop paying for service, at least for 30 days.

Cramming

Cramming occurs when charges appear on a phone bill for unauthorized products or services. The National Fraud Information Center (NFIC) reports there have been more complaints filed in 1998 for cramming than for any other fraud category. In fact, more than two out of five con artists use the phone bill as a preferred method of payment because the number is easy to access and the charges often go undetected-given the confusion many consumers face in deciphering their bills.

Some examples of these scams include charging for:

• Optional services, like voice mail, that haven't been ordered.

• Calls that weren't made or were placed to toll-free 800 or 888 numbers.

• Unauthorized services described in general terms such as "calling plan," "membership" or "monthly fee."

Tips for Foiling Fraud

1. If you receive a call soliciting you to switch phone service and don't want to do so, explicitly state that you're not interested and discontinue the conversation.

2. Be suspicious of any phone company solicitor unwilling to send written information before you make your decision.

3. Never sign anything without reading it carefully, especially sweepstakes and coupon offers.

4. Be careful when calling unfamiliar 800 or 900 numbers, especially if you're asked to enter an activation code number.

5. Never give out personal information such as your phone number or current service carrier unless you know who will have access to it and how it will be used.

6. Examine your phone bill closely each month. Call the phone number listed at the top of the bill page if there's a charge you don't understand. You have the right to insist that any products and services not ordered be removed from your bill.

7. And, if you find you've been crammed or slammed, you have the right to file a complaint with the local Better Business Bureau, state Attorney General's Consumer Fraud Hotline, or the FCC Consumer Protection Branch in Washington, D.C.

Excerpted with permission from Small Business Success, Volume XII, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration.