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New dialler scam surfaces

OUT-LAW News, 06/09/2004

A new form of rogue dialler trickery is emerging from Spain, according to a report by The Register. The new scam inserts an automatic "yes" into an on-line premium rate payment agreement, which may not be noticed by unwary users.

Scams involving premium rate services hit the headlines over the summer when thousands of computer users found themselves with unexpectedly high telephone bills, sometimes caused by fraudulent internet charges.

Of most concern were rogue diallers – software that installs a premium rate number as the default dial-up number on a victim's computer without his knowledge, resulting in an unexpectedly expensive call every time the computer connects to the internet.

In the wake of public outrage over the frauds, ICSTIS, the UK watchdog for premium rate phone numbers, set out new rules for companies that run premium rate services using internet dialler software. These require the prior permission of the regulator before a service can come into operation, and will only be given if certain standards are met.

Ofcom, the communications regulator, has also announced a review of the rules governing premium rate 090 telephone services. This will consider options to strengthen the powers of ICSTIS as well as any other actions necessary.

But according to The Register, dialler frauds are already evolving to take account of the new rules that are being imposed in the UK and throughout Europe. The news site reports on a warning issued by German web site Dialerschutz over a scam that is likely to be copied by other fraudsters.

The new fraud, says The Register, relates to a Mallorca based porn company that complies with all the new dialler conditions, but has programmed its on-line payment agreement to automatically say "yes". This means that unwitting users may find themselves signing up to charges without actually intending to.

 

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