"CYBER DIALER ATTACKS" Issue Paper. The Problem
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- Rudolph Sherman
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1 "CYBER DIALER ATTACKS" Issue Paper The Problem Consumers across the country are receiving telephone bills that include one or more calls made to another country. Chances are that consumers are using a local phone number to get online, and know exactly what they are paying for when calling their service provider. Nevertheless, many consumers are finding charges on their phone bills for calls to destinations that give new meaning to long distance. The calls were made through their modems without their knowledge or approval. Calls have been automatically directed to places like Vanuatu in the Southwest Pacific, Chad, Guyana, Niu or Madagascar. Consumers do not remember placing the call, but its detail is on the telephone bill. Bills may vary in size from a few dollars to hundreds of dollars in just one month. Customers do not realize that someone using their telephone line probably made the call with their computer modem doing the dialing with a program provided by the unknown third party. Right now only AT&T bills for these calls. What s Happening? Some deceptive websites are tricking consumers (often minors) into downloading a computer "dialer" program that automatically disconnects the user s Internet connection and dials an international long distance telephone number (the number dialed is usually XX XX XXXX). Calling rates for these calls can be as high as $10.00 or more per minute. Sometimes a small print disclosure appears on the website screen that informs the user about the international
2 call, but the long distance carrier does not disclose these rates and charges in any form. The download is often activated without warning by a simple click on a link. In the past, these scams were primarily related to adult entertainment web sites but have now expanded to include sites related to games, sports, psychic services, gambling, travel deals and other consumer topics. Unsolicited (spam) is also being used to trick consumers into unsuspectingly placing international calls. The message is typically a brief teaser line promoting merchandise or a service. The dialer is included as an attachment the user is encouraged to download and open in order to access more information. Once the attachment is opened, the dialer is automatically activated and starts dialing the overseas call. Like the website scams, these scams have expanded beyond the adult entertainment industry to include an array of consumer products and services. The Federal Trade Commission (FTC) says these scams are very lucrative for the operators, and it may be only a matter of time before they appear on sites that feature other services. The FTC has taken actions against some providers of these sites. The actions have required selected providers to put disclaimers on the site concerning the charges and fees. How Consumers can Protect Themselves From These Scams When online, watch and listen for suspicious dialing activity. Turn up your modem s volume setting so
3 you can hear it dialing. If you see an onscreen dialog box or icon (indicating that your computer s modem is dialing when you did not direct it to) quickly disconnect the connection. Inexpensive switches can be connected to your modem for this purpose. Be cautious when surfing the world wide web especially when visiting unfamiliar websites. Download programs only from sites that you are familiar with and trust. Read online disclosures carefully. Be sure you understand what you are agreeing to before downloading a program. Talk to your family members about international dialing scams. Be skeptical about unsolicited e- mail. Be cautious about opening an attachment even if it passes your anti-virus program s scrutiny. Trojan horse dialers are not always detected by anti-virus software. Request an international block from your local and long distance telephone company for your
4 computer line, and install a complete toll restriction if you have a separate computer line to prevent a connection for a long distance call. (Check to make sure the block works and that it also obstructs XXX dial-around numbers.) Take action if you think you are a victim of computer-generated, international telephone fraud. Contact your local and long distance telephone companies. Your assistance will help their investigations. Contact the Federal Trade Commission (FTC) and file a complaint. The FTC s toll-free telephone number is , or, you can access the FTC s online complaint form at. Contact the State Commissions and consumer protection agencies. Possible Actions for Regulatory Attention 1. Long distance carriers should be required to offer blocking of international calls blocking of calls or provide ID and
5 PIN protection to make long distance and international calls. 2. Customers should not have their local service or credit rating affected if they have one of these charges in dispute. 3. Develop State and federal rules/laws prohibiting the transfer of dialing programs via the Internet or and to dial a customers computer to international locations without prior written contracts. 4. Require all long distance carriers to provide to all customers information explaining this problem and how to prevent it from occurring. Sponsored by the Committee on Consumer Affairs Adopted by the NARUC Board of Directors, February 28, 2001.
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