SCAM WATCH
Beware of Jury Duty Phone Scam - An old phone scam has been resurrected lately by a growing number of fraudsters. The scam usually begins with a call to the victim in which the scam artist poses as a court official. The scammer tells the victim that they are in trouble because they failed to appear for jury duty. The victim will usually be anxious to resolve the issue, since they typically assume that they just never received a notification in the mail. The scammer the asks for the victim’s personal information such as birth date, social security number, and even their credit card number so they can “look up the information.” This typically “clears up” the confusion, but the scammer now has all the personal information they need to commit identity theft. The scam has been recently reported in 10 states and the FBI is now warning consumers to beware of this particularly nasty type of fraud (click here to see the FBI’s warning). Consumers should remember these tips for avoiding the jury-duty scam (from the scam-education site Snopes.com):
- Court workers will not telephone to say you've missed jury duty or that they are assembling juries and need to pre-screen those who might be selected to serve on them, so dismiss as fraudulent phones call of this nature. About the only time you would hear by telephone (rather than by mail) about anything having to do with jury service would be after you have mailed back your completed questionnaire, and even then only rarely.
- Do not give out bank account, social security, or credit card numbers over the phone if you didn't initiate the call, whether it is to someone trying to sell you something or to someone who claims to be from a bank or government department. If such callers insist upon "verifying" such information with you, have them read the data to you from their notes, with you saying yea or nay to it rather than the other way around.
- Examine your credit card and bank account statements every month, keeping an eye peeled for unauthorized charges. Immediately challenge items you did not approve.
Consumers who believe that they have been victims of this fraud should review their account statements and credit reports for suspicious activity. If such activity is noted, consumer should contact their credit card companies and credit rating agencies. Additionally, the FBI is encouraging victims of this fraud to contact their local FBI office. Local FBI field office telephone numbers can be found in the front of most local telephone directories or on www.fbi.gov.
WASHINGTON WATCH
High Cable Rates Show Need For Real Video Competition, Says TRAC – On Thursday, TRAC called on Congress to eliminate the roadblocks to true video competition and pass urgently needed video franchise reform legislation. The lack of effective wire-based video competition has condemned consumers to large annual rate increases that are taking an increasing large bite out of their monthly budgets, said TRAC’s press release. "Congress knows that it can help consumers save money on their television bills,” said Samuel A. Simon, Chairman of TRAC’s Board of Directors. While competition from direct-broadcast satellite (DBS) providers has helped consumers real rate relief comes only when a competing wire-based competitor enters a market. According to the General Accounting Office (GAO), cable television rates in markets where there is a competing wire-based company are 15% lower than in markets where there is no wire-based competitor. Data from the Federal Communications Commission (FCC) shows even larger savings (15.7%) for consumers in areas with a competing wire-based competitor. In Keller, Texas, where Verizon recently began competing with the incumbent cable operator, the cable company reduced rates by 20%. Unfortunately, less than 2% of U.S. markets have effective competition from wire-based cable operators. By comparison, in communities where DBS is the only effective competitor to cable, monthly cable rates were only 7.3% lower than in areas without effective competition. To read the full press release, click here.
Victory! Federal Excise Tax to End, Consumers to Get Refunds - It was a great day for telecommunications consumers on Thursday as the U.S. Treasury Department announced that it is conceding an ongoing dispute over the legality of the Federal Excise Tax that most U.S. telecommunications consumers have paid for years as a part of their long distance and wireless phone bills. The tax, typically calculated as 3% of local toll, intrastate, interstate, and international long distance call charges, has been in existence in various forms since the 1898 Spanish-American War, when it was instituted as a luxury tax on the rich. Consumers will be able to apply on their 2006 tax returns for refunds for all Federal Excise taxes paid since February 28, 2003, including interest. The latest Federal Communications Commission (FCC) data on consumer expenditures on telecommunications services states that the average bill for long distance and wireless service was $51 per month, or $612 per year ($1,836 over a three-year period). As such, the typical American household may qualify for an additional $55.09 refund on their 2006 tax returns as a result of this action. For more information on this issue, click here.
TRAC IN THE NEWS
Simon Speaks on NSA Wiretapping and Cell Phone Records – TRAC Chairman and founder Samuel A. Simon appeared on National Public Radio on Friday, May 19 on a segment discussing the security of phone records. Simon explained that historically consumers could rely on the security of their phone records. In the past, “they [the phone companies] would not ever disclose a telephone record or a calling pattern without proper judicial paperwork or warrant or a court-ordered wiretapping,” said Simon. Thus the NSA wiretapping issue is of all the more concern to consumers. He also suggested that another great worry for consumers was the sale of cell phone records by fraudsters (sometimes called “pretexters”) who call phone companies and impersonate subscribers or subscribers’ family members in order to get personal calling information. This information is then sold to telemarketers or other individuals (jealous husbands, bosses, etc.) who want a consumer’s private information. “People sell bills, and then sell that information and use it with marketing firms, or to people who wanted it,” said Simon. Congress is now considering legislation that would make it a federal crime for anyone to get phone records this way. To listen to the full segment, click here.
Cutting the Cord Could Save Money, But Beware of Pitfalls – TRAC Chairman Samuel A. Simon was featured on a NBC Channel 4 in Washington, DC on Monday in a segment on cutting the cord with wireline service providers. “People are cutting the cord because they find out they have too many phones and phone lines,” said Simon. “They are paying too much money.” With the average American’s home phone bill running at $114 per month, once local, long distance, and wireless phone service are combined, more and more Americans are deciding to cut the cord and go completely wireless. Statistics vary, but experts say that anywhere from 6-9% of consumers are using their cell phones exclusively for all their calling and 2% of households have cut the cord completely. Before cutting the cord, however, consumers should consider some important details. First, if a caller calls 9-1-1 in an emergency and cannot communicate with the dispatcher, the dispatcher may not be able to pinpoint the callers location, especially if the caller is located in a multi-story office or apartment building. Second, cell phones depend on the electrical power system to recharge batteries. Consumers who decide to go completely wireless are encouraged to buy a backup battery and a car charger so that the phone can be kept charged during extended power outages. Finally, make sure that the phone works in every room of the house, especially interior rooms such as bathrooms, closets, and in belowground basements. To view a video of Simon’s appearance, click here.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
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