Thursday 21 May 2015

Another Scam to be on the watchout for

As part of my series on how to avoid being scammed, I am highlighting a new scam doing the rounds that is probably racking up millions for the perpetrators. 

As you will be aware, many phone services make their money by utilising a premium service ie a 19 number.  Any calls to these numbers are charged at a high rate ( typically ~$10 per call or text) and the telecommunications company simply passes the profit onto the 3rd party after taking their cut. 
In the case below, the scammers have utilised the premium service as a way of making a profit even if they do have to make an investment up front when sending their SMS texts. 

The Scam works this way
1.      You receive an SMS from a person or service stating that you have subscribed to their premium service and that they will charge you ~$10 per month to use their service.  The one that I have seen comes from an organisation called “KKO Store” supposedly for music and ring tones.
2.      You think, “how did I subscribe to this service?”  Fortunately (sneakily) in the SMS there is a line that says “ to cancel this service, text “STOP” to 19xxxxx”
3.      To stop the service you do the right thing and SMS “STOP” to the number, not realising that texts to these 19 numbers are charged at $10 per text.    
4.      So effectively the text should say that you will be charged $10 to stop the service, even when you never subscribed in the first place. 
5.      Next month you get another text from the same scammers. 

To avoid these scams you need to be aware that your number is probably published in many locations and you need to be aware that the device in your hand is a desirable piece of technology for the crooks and scammers out there.  If you don’t know where the text has come from, the safest procedure is to delete it.  As a matter of policy, you should make sure your mobile is  blocked from sending texts to premium 19 numbers. 


Stay safe.