Consumer Protection

Prevent Identity Theft | Report Internet Fraud | Dispell Internet Rumors | Relief from Telephone "slamming" | Stopping Unsolicited Communication

Tips To Prevent Identity Theft

Identity theft has become a big problem in today's modern, electronic society. The use of credit cards and the like makes it easier for a thief to charge items to your existing account or to even open new accounts. Expenses can be quickly added to your good name without your knowledge.
If you fall victim to identity theft, one of the steps you will have to take is to contact the nation's three largest credit reporting agencies: Experian, Equifax and Trans Union.

Experian can be reached by writing the agency at PO Box 2002; Allen, Texas, 75013; or call at 1-888-397-3742. Equifax can be reached at PO Box 740241; Atlanta, Georgia, 30374-0241; or call at 1-800-685-1111. Trans Union can be reached at PO Box 1000; Chester, Pennsylvania, 19022; or call at 1-800-916-8800.

The Federal Trade Commission has some good tips on its Web site concerning how to protect yourself from identity theft and what to do in case you fall victim.

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Reporting Internet Fraud

Although technology generally enhances our quality of life, it can cause its share of problems, as well. Internet fraud, for example, is one of the most critical challenges facing law enforcement.

Because of the anonymity of the Internet, special steps have to be taken when investigating fraud. And up to this point, victims of Internet fraud have had no central repository to report the crimes. Now the Federal Bureau of Investigation and the National White Collar Crime Center have established the Internet Fraud Complaint Center, which is available via the Internet at Fraud Complaint Center.

The IFCC is designed to educate consumers and serve as a central repository for consumer complaints about Internet fraud. After a consumer complaint is filed with the IFCC via an on-line, fill-in-the-blank complaint form, the organization's staff will analyze the complaint and alert the appropriate federal, state and local law enforcement authority of suspected criminal or civil violations.

The Federal Trade Commission, the nation's chief consumer protection agency, has also identified the top 10 "dot cons" facing consumers who surf the Internet. By clicking on this link, DotCons, you will be taken to the agency's Web site where these scams are outlined and described.

Internet fraud is defined as any fraudulent scheme in which one or more components of the Internet, such as Web sites, chat rooms and e-mail, play a significant role in offering nonexistent goods or services to consumers, communicating false or fraudulent representations about the schemes to consumers, or transmitting victims' funds, access devices or other items of value to the control of the scheme's perpetrator.

Internet-related and computer-facilitated crimes primarily impact the priority white-collar crime problem areas of financial institution fraud, securities and commodities fraud, telemarketing fraud, money laundering, insurance frauds, and theft of technology and intellectual property rights.

In June 1999, it was estimated there were 92 million users 16 years of age or older accessing the Internet in the United States. Estimates indicate by the year 2001 there will be 707 million people accessing the Internet worldwide. Electronic commerce over the Internet is also expected to exceed $1 trillion in the next couple of years. As you can imagine, Internet fraud will most likely grow as a problem.

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Internet Rumors

602P

Claim: Congressman Tony Schnell has introduced legislation (602P) to allow the U.S. Postal Service to impose a 5¢ surcharge on every e-mail message sent via the Internet.

Status: False

There is no Congressman named Tony Schnell and no Bill 602P. Congressional bill designations begin with either H.R. or S., depending upon whether they're House or Senate bills. Neither the U.S. Postal Service nor Congress has ever considered any proposal to impose a charge on the private e-mail system. This hoax started in Canada and has since spread to the U.S. and other countries including Australia.

Long-Distance Charges for Internet Use

Claim: Congress or the FCC is deciding whether to allow phone companies to impose a long-distance charge for Internet access.

Status: False

The FCC has made several unrelated decisions about "reciprocal compensation" and "interstate access charges," i.e., payments made by phone companies to compensate each other for handling calls made by each other's customers. This does not affect Internet users. Dial-up connections to the Internet have been, and still are, considered local calls subject to a flat rate for unlimited usage. Neither the FCC nor Congress is considering legislation that would impose -- or allow phone companies to impose -- per-minute access fees or long distance fees on Internet users. Flat rates are the main reason the U.S. has led the world in the number of citizens who use the Internet.

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Relief From Slamming

Like you, I am concerned that telephone bills are becoming increasingly complicated and confusing to consumers, making it easier for scam artists to "cram" charges on your bill for services that you don't want and haven't authorized. Another problem is companies that "slam" you by changing your long distance carrier without your permission. Both "slamming" and "cramming" are illegal.

The Federal Communications Commission recently ruled, with my strong support, that consumers do not have to pay for any charges billed them for up to 30 days after they have been "slammed", i.e., switched to another telephone carrier without their consent. While consumers must pay any charges for service beyond 30 days, they do so to their authorized company at that company's rates, not the slammer's rates.

If you already have paid your phone bill, the slamming company must pay your authorized company 150 percent of the charges it received from you. Out of this amount, your authorized company will then reimburse you 50 percent of the charges you paid to the slammer. For example, if you were charged $100 by the slamming company, that company will have to give your authorized company $150, and you will receive $50 as a reimbursement. These policies take the financial incentive out of slamming.

If you have been slammed:

1. Call the slamming company and tell them you want the problem fixed. If you have not paid, tell them you will not pay for the first 30 days of service.

2. Call your authorized company (local or long distance) to inform them of the slam. Tell them that you want to be reinstated to the same calling plan you had before the slam. Tell them that you want all "change of carrier charges" (charges for switching companies) removed from your bill.

3. File a complaint with the appropriate government agency. In Tennessee, the Tennessee Regulatory Authority handles all slamming and cramming complaints. To file a complaint or for more information about your rights as a consumer, contact the Tennessee Regulatory Authority at 1-800-342-8359 or on-line at Tennessee Regulatory Authority.

For additional on-line information, consumers can go to the FCC's Web site at FCC Information.

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Stopping Unsolicited Communications

Middle Tennesseans are harassed daily with annoying telephone calls from telemarketers, irritating mailings from credit card companies and aggravating e-mails from porn peddlers. Relief from these unwanted solicitations is available if you know what agency or organization to contact.

People can make their telephone numbers off limits to telemarketers by contacting the Tennessee Regulatory Agency by mail, the Internet or a new toll-free "Do Not Call" telephone number. By dialing the new number (1-877-872-7030) and following the recorded instructions, your name and phone number will be put on a list that professional telemarketing firms must buy. Telephone numbers will be off limits to solicitations effective 60 days from the end of the month the number was registered. The number stays on the "Do Not Call" registry for five years.

People can also register their telephone numbers on the "Do Not Call" list via mail by writing the agency at 460 James Robertson Parkway, Nashville, TN, 37243, or via the Internet at "Do Not Call" Telemarketers face legal penalties for calling numbers that are listed on the registry.

For those who are tired of having their mailboxes crammed with pre-approved credit card applications or other unwanted promotions, contact the three major credit bureaus and notify them that you do not want personal information about you shared for promotional purposes. Write a letter to each of the three bureaus: Equifax Inc., Options, PO Box 740123, Atlanta, GA, 30374-0123; Experian, Consumer Opt-Out, 701 Experian Parkway, Allen, TX, 75013; and Trans Union, Marketing List Opt Out, PO Box 97238, Jackson, MS, 39288-7328.

In addition, the Direct Marketing Association offers the Mail and Telephone Preference Services, which allow people to reduce the amount of direct mail marketing and telemarketing they receive from many national companies for five years. To reduce direct-mail marketing, write a letter to the Direct Marketing Association, Mail Preference Service, PO Box 9008, Farmingdale, NY, 11735-9008. To reduce telemarketing, write a letter to the Direct Marketing Association, Telephone Preference Service, PO Box 9014, Farmingdale, NY, 11735-9014.

When people register with these services, their names will be put on a "delete" file. Registration with these services, however, will not stop mailings or phone calls from organizations not registered with the DMA's Mail and Telephone Preference Services.

The DMA also recently launched a new E-Mail Preference Service to help people reduce unsolicited commercial e-mails, or spam. To "opt-out" of receiving unsolicited commercial e-mail, use the Direct Marketing Association's on-line form at Direct Marketing. The request will remain effective for one year.

America On-line, the largest Internet service provider in the world, estimates that as much as 30 percent of its e-mail traffic is spam, with more than 60 percent of that spam advertising pornography, get-rich-quick schemes and fraudulent offers. As much as 10 percent of a customer's ISP fee is dedicated to fighting spam, analysts estimate.

Complaints concerning unsolicited mail, telemarketing or e-mail can be filed with the Federal Trade Commission by contacting the Consumer Response Center by phone: toll-free at 1-877-382-4357; TDD: 202-326-2502; by mail: Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave., NW, Washington, DC, 20580; or through the Internet at FTC by using the on-line complaint form.

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