Wednesday, July 30, 2014

US carriers have 'reaped hundreds of millions of dollars' from bogus charges


A new report published Wednesday claims US wireless carriers have raked in "hundreds of millions of dollars" from unsuspecting customers by "cramming" unauthorized charges onto their bills. The dubious practice often finds wireless subscribers paying for premium short message services (PSMS) they have no recollection of signing up for. Cramming has "caused consumers substantial harm" according to the US Senate Commerce Committee. But it's also proven lucrative for carriers: Verizon, AT&T, Sprint, and T-Mobile have typically kept between 30 and 40 percent of each transaction. "Third-party billing on wireless phone bills has been a billion dollar industry that has yielded tremendous revenues for carriers," the report found.


"Many of the...


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