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Posted on 5-7-2004
Web
scam costing PC users millions
by Patrick Collinson and Rupert Jones, July 3, 2004, The Guardian
ED. This scam is unlikely to work in NZ because 090 isn't a
valid dialup
number prefix.
...........
Thousands of internet users are unwittingly running up big telephone
bills
after falling victim to a new web scam which tricks home computers
into
dialling costly premium-rate lines.
The number of "rogue diallers" infecting PCs has snowballed
in recent
weeks, with some households hit for bills of more than £1,000.
Many have
only discovered in the last few days that the virus has infected
their
computer after receiving their telephone bill.
The switchboard at pre mium-rate line regulator Icstis was jammed
every
day this week with calls from angry internet users. The regulator
admitted
yesterday that it had been "overwhelmed" and is considering
pulling the
plug on all premium-rate lines.
The virus can be activated by closing an unwanted "pop-up"
window on an
internet screen. This sends a message to the computer, changing
its usual
log-on settings. It then surreptitiously diverts the connection
into a
premium-rate line, typically at £1.50 a minute.
The calls, which all begin with an 090, terminate in locations
such as
Moldova and the British Virgin Islands, according to Icstis.
It is
formally investigating 15 telecom companies but is understood
to be
looking at many more.
Icstis said it had received more than 10,000 complaints about
rogue
diallers - and estimates that consumers have already lost as
much as £10m.
The main telecom providers, BT and NTL, are refusing to compensate
customers, arguing that they simply provide the infrastructure
and cannot
be held responsible for fraudulent activity over the net.
An emergency warning about premium rate diallers on the Icstis
website
(icstis.org.uk) says: "As the regulator, we are not responsible
for
resolving disputes over bill payments. Whilst we are able to
supply the
name and address details for the service provider, there is
nothing
further Icstis can do to help you obtain a refund."
Households are being told to seek compensation by writing to
the operators
despite the fact that most are based in obscure offshore locations.
Industry insiders blame the growing problem on recent EU e-commerce
legislation which liberalised the internet market and relaxed
registration
safeguards and the vet ting of international premium-rate lines.
Until this week BT said it could not block any premium- rate
lines without
the completion of a full investigation by Icstis. But stung
by criticism
that it is profiting from the scam - the carrier picks up £1.85
from every
£100 in premium rate revenue - BT said it will actively
block lines when
it receives complaints from the public and pay its share of
revenue to
charity.
BT group managing director (consumer) Gavin Patterson said:
"We need to
minimise the number of customers being affected quickly and
we can't allow
any more of our customers to fall victim."
Icstis says it is installing new switchboard capacity and hiring
advisers
to deal with the surge in unanswered calls.
It has also shelved earlier proposals to raise the maximum per-minute
charge on premium-rate lines to £5.
Liberal Democrat MP Norman Lamb called for more aggressive regulatory
action, such as a bonding scheme for premium-rate operators.
"It's a
criminal offence and the criminals should be tracked down and
prosecuted,"
he said.
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