Telemarketer Blows Whistle on Tape-Altering Scam
Recently, Florida-based telemarketing firm Epixtar is frequently accused of cramming an extra $30 onto phone charges of small businesses, yet has proof of legality by recording their calls. Until they laid off some people, one of whom has blown the whistle. The companies' cramming tactics become "legal" by altering those taped recordings to include a quick statement about the $30 charge. MSNBC has the article, including a short audio clip of a sample call.
Until they laid some people
Well, I guess they really screwed their employees over, too.
Damn, say what you want about telemarketers, but I think I want to work for this company.
The whistleblower obviously was a person that was not laid.
Objects in the blog are closer then they ap
What happened to people reporting this sort of stuff before they had a grudge against the company? Why do only former employees report this sort of thing?
Lends a different connotation to "blowing the whistle," doesn't it?
Here Enjoy.
I'm not Seth.
These tactics have been around in the industry for way too long. I had a roomate that used to make money off these cramming punks by telling them he had a better deal from X company and they'd give him 100 dollars to switch plus pay the switching fees and such. And he'd play all sides.
:)
Man let me tell you his beer fund was funded
"The company feels it operates ethically and has not done anything wrong," Nasca said.
If you're getting anrgy phonecalls from the people who are giving you money (more or less by voluntarely), you're probaly doing something wrong and / or unethically. Wether you give a damn is another matter entirely... many a sucxessfull business (spammers etc) depends on pissing people off.
Everything in the world is controlled by a small, evil group to which, unfortunately, no one you know belongs.
The solicitation most definitely looked like a bill (front page and back page). The bottom half of the page is a tear away bill stub and the solicitation notice on the top right hand corner is in a lighter font than the rest of the text (though it's harder to notice on the scan).
Fortunately, I'm in the habit of reading all of my bills when they come in, but some people aren't. They obviously got the information from the internet WHOIS database even though that database is explicitly protected by a clause saying you can't datamine from it.
The next morning, I filed a complaint with the United States Postal Inspectors because of the deceptiveness and the likelihood that others will be fooled by it. Here is the complaint I sent:
I received a solicitation from ICLS which deceptively looks like a bill. Located on it, is a tear-away payment stub with a customer number, due date and amount with no reference to the fact that it's actually a solicitation on the stub. On the upper right hand corner, it does state "THIS NOTICE IS A SOLICITATION AND RECEIPT OF PAYMENT WILL CONFIRM YOUR ANNUAL LISTING", however, it is a lighter font than the rest of the solicitation.
While I, fortunately, did not fall for the solicitation, I'm concerned that other people whom aren't as careful could easily be deceived as without close examination, it will appear as a bill.
I'm still waiting to hear back from the postal inspectors to see what they have to say.
Don't leave your mind so open that your brain falls out. Don't close it so much that you cut off the blood.
And I've got a telephone, but I've not heard anything about this laying, blowing or cramming until now. Evidently I am in the wrong field.
All I ever get are wrong numbers.
My Webcomic: Asylum on 5th Street
How to piss off AT&T
:-)
A Nice List
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50 Stupid things to Say
These bastards are a pet hate of mine. I've tried most of these at one stage or another. If you can keep from laughing, it's fun to string them along
I'm not Seth.
So, I know Epixtar added their "lightning-quick" phone-bill-altering deal to the tapes after the fact. However, what I want to know is: Is there some sort of legal requirement for how slow/quickly such statements have to be said? I mean, car commercials/ads routinely have quickly-spoken disclaimers at the end of ads and such. If Epixtar had merely tacked on the "we can alter your bill" or whatever phrase, only spoken at a Micro Machines guy speed so it seemed like crackly phone noise, would that be legal?
not to mention the size of the severance "package" the boss gives ya.
Comment removed based on user account deletion
I want one of two things: Either the company responsible for telemarketing fraud is fined the entire dollar amount of all assets plus 50% and all employees directly involved in the particular incident receive no less that 10 years in prison and a fine of no less than $25,000 per instance with all fines being equally disputed among those victims of this company's fraudulant operations.
Or I want button installed on my phone that will kill whoever is on the other line.
If you're working at one of these places you're doing it for the money, not for a warm feeling. Morality is a luxury many people can not afford.
Check out this answering machine for your PC that deals with telemarketers who withhold their caller ID. The software can be configured to hang up on these cases and you will never hear the phone ring. It also implements white lists and black lists. Usual disclaimer applies.
Yes there is a risk of IDing legitimate calls as false positives. However, I've been monitoring my caller ID for over two years and can confirm that this is becoming less of a problem as more bell systems make their caller ID protocols compatible. So the risk is diminishing with time.
Yes this is a drastic move but until the law catches up this is how you have to deal with aggressive deceptive practices.
Caller ID is a godsend people - use it. Yes the telcos should be hung by their balls for extorting extra services out of the customers by selling personal information to scum telemarketers. In my next residence I will register my phone under an alias. If anyone calls asking for the alias, then they are immediately identified as a telemarketer and I will tell them there is no one here by that name. This crap has gone far enough.
Eternity: will that be smoking, or non-smoking? I Corinthians 6:9-10
It almost is a good enough reason to drop the landline entirely. It adds to the TCO of a landline.
Somehow I see E-mail dying (replaced by online feedback forms) and Landlines dying (replaced by VoIP and wireless).
Any good technology can be turned into trash with the right tools.
The truth shall set you free!
This will eliminate a small number of telemarketers - the rest will get through because they're calling from overseas and would have simply shown up as "out of area" or blank on your caller ID unit.
Hold on. Slashdot has so many people experiences in social engineering. Why not give Epixtar a call and sell them some choice beachfront property in Arizona? Then if they don't pay, present them with a recorded conversation. After defending their strategy in court they wouldn't be able to just back out of it.
Better yet, try it on the next telemarketer that calls you. Should be fun and legal, since they called your "business" to "inquire about your services" themselves.
This actually happened to my dad. Keep in mind my dad works nights, and typically sleeps all day.
Telemarketer: "Hi, my name is [somebody] and... excuse me, can you hear me?"
My dad (still groggy): "Yes."
Telemarketer: "I'm calling to offer you suchandsuch a service... [blah blah blah garbage]"
Dad: "I'm not interested. Goodbye. *click*"
Next month, he notices his long distance service has been changed to (I think) AT&T.
They used his "Yes" answer to an irrelevant question, and turned it into a "sale".
People like that should be thrown in jail.
o/~ All God's children shall be free in Pirates of the Caribbean, when we reach that Magic Kingdom in the sky... o/~
What he meant
"If you blow the whistle you'll be laid off"
What he actually typed
"If you blow my whistle you'll be laid."
eh, easy mistake, anybody could have made it.
Buy Steampunk Clothing Online!
The worst was a local newspaper calling around for new subscriptions. He starts out saying what paper he's calling about and asks whether I receive their paper. I say no. Then he starts off on a sales pitch, which I interrupt to say that the reason I don't receive the paper already is that I don't WANT it, since I get my news from the net. The guy actually tries to continue on reading the script or whatever he's got in front of him... took a couple tries to be polite about not wanting what he's selling before I just flat out said "Listen to the words coming out of my mouth. Not interested." and hung up on the guy. In retrospect that should have been my first response.
I'm amazed people still sit on the phone with these bottom-feeders and answer their questions, unwillingly signing themselves up for a ton of crap. It's not hard to tell them to piss off instead of falling for their tactics.
"I'm a leaf on the wind. Watch how I soar."
-Hoban Washburn
The companies' cramming tactics become "legal" by altering those taped recordings to include a quick statement about the $30 charge.
That's not what the article says. It hints that the tape was cut off immediately after the person responded "Yes" to a group of questions asked quickly all at once, removing the rest of their response. Which is still bad but not nearly as bad as inserting bits into the conversation that never took place. I'm sure that's not far off, if it's not already happening in some cases, but it didn't happen here according to the MSNBC article.
Bill Stewart
New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
NEVER BUY ANYTHING.
/. are all aware of how that works. (Free Kevin, oh wait, nevermind) But these guys are just plain arrogant about it. Did you hear the womans voice when she was asked to repeat something? She got a real nasty tone. The social response to that is to not ask for anything to be repeated. And voila, he gets nailed with some services and charges he never really even heard, or realized he was buying.
Never confirm more than your name, and ask for theirs first.
A person/company calling you has you at a great advantage. It could be an inmate of a prison just trying to get your credit card, and all he/she started with was probably a phone book or Internet connection... I mean come on, they almost always BLOCK their source phone number. How can you even remotely trust someone who is hiding behind an unidentified phone number, wanting to sell you something???
It is like social engineering, surely we here on
Now what I have always wanted to do, but never have, is when the call starts and they say it may be recorded, I would say "Good, for my records and quality assurances I AM RECORDING THE CALL TOO." How do you think the would respond to that? most likely "Click."
Silly Rabbit: tricks are for kids.
JERRY: Uh, sorry, Excuse me one second. Hello.
TEL: Hi, would you be interested in switching over to TMI long distance service.
JERRY: Oh, gee, I can't talk right now. Why don't you give me your home number and I'll call you later.
TEL: Uh, I'm sorry we're not allowed to do that.
JERRY: Oh, I guess you don't want people calling you at home.
TEL: No.
JERRY: Well now you know how I feel. [Hangs up]
Seinfeld Episode Transcript
I switched from NSI to a different registrar sometime ago for obvious reasons. NSI, of course, tried to stop that from happening but I'd done my homework and everything went smoothly since everything was in order. Several months later I recieve a bill from NSI. I am prepared to get all angry when I notice it's NOT actually a bill, it just looks like bill. It's really a form to transfer my domain back and charge me for it.
I told the FTC about it and they told me that I was not the only one to complain and they were looking in to it. Dunno what ever came of it, NSI has left me alone since.
EXACTLY. Having been forced into telemarketing for a short period of time myself (due to financial reasons) I can attest that very few people that are able to continue telemarketing work full time have no souls. I didn't last 40 hours, and the only reason I lasted that long was because i had my fiancee providing emotional support, and I couldn't afford to quit.
In my mind, telemarketing is about as self-damaging as prostitution. I'd probably put it up there on the moral scale, too. Its time we see religoius groups going into telemarketing offices and trying to save their souls.
Actually, I think that a prostiute is lest morally detestable than a telemarketer - at least prostitutes can feasably enjoy their job, and it pays better.
~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
The overall situation is worse than the article leads you to believe. This is something that I wouldn't expect to see fully explained on any major news site like MSNBC. The situation is thus: You don't need any proof -- or real proof -- in order to steal money from people via their phone bills.
... but by 1997 I could only change my own behavior in response to the groundswell of all the legalized fraud that was going on.
By that year, I knew that I had to hangup immediately to avoid entanglement with a calling telemarketer, and that my phone bills had to be carefully scrutinized every month. *
... you issue about 10 thousand blatantly false charges to 10 thousand homes and small businesses via your "Internet service company" and collect from the percentage that don't bother to (effectively) fight your fraud.
The next month, you go after another 10 thousand addresses.
After a year, you'll have to close down the business to stay ahead of the cops, but by then you've accumulated over half a mill.
You pay yourself well, your mafioso helpers okay, and then invest in the next scammer slammer business.
... much of it is organized crime, and it should be treated as such.
They should be arrested, charged and prosecuted for what they do.
Hopefully when arrested they try to resist and are shot dead on the spot.
Back in the 1990s I began to realize that a phone bill became viewed as a charge account that organized crime could tack charges onto. This accusation includes organizations like AOL. Charges for goods and services -- delivered or not, worthwhile or not -- could be tacked onto the billing statement, which would be automatically sent and almost automatically paid for. It was simply too good to believe for mafiosi large and small
This new environment has encouraged sociopathic wariness to contact with businesses. Congratulations, Corporate America!
By 1998, I could clearly see a workable but fraudulent business model arising. It's relatively simple
You don't need vox proof of anything, but such things can be falsified when necessary. One anecdote (names altered) springs to mind of what happened within my circle of friends. I know a small, used bookstore named Smather's Books, run by Ms. Smith. One month she noticed a $29.95 item tacked onto her small-business phone bill for "Internet Yellow Pages service" (or something like that). She called to investigate, and when she finally got to the right person at at the IYP service company, they played a recording for her from "Mister Smather". On the tape she clearly heard Mr. Smather authorizing the IYP service.
This would all be fine and dandy, except for the fact that there is no Mr. Smather.
"Smather's Books" is just a name she made up that was close to her own name. The tape was falsified. Even after she pointed this out to the IYP company, she didn't get very far with them, and only after complaining to the telco did the charge get dropped from her bill.
The use of threat and deception to acquire money is morally criminal. Make no mistake at all on this telemarketing and other boiler-room matters
* By 2001, I no longer answered my phone, preferring to screen all calls.
[You have a stable society when some nut guns down a schoolyard and the law doesn't change.]
What scares me is businesses are arranging with banks on direct account withdrawals, and checking account numbers are pretty easy to come by. I mean, if you have ever paid something by check, they have it. And now, they do not even need a signed check to get withdrawal. So you could see charges showing up on your checking account that you have no idea what is.
And dealing with a business is kinda scary, because they have links to Equifax, TransUnion, and Experian. They can mess up your credit and then you have to straighten that out too. You might as well pay them their money just not to have to argue about it. I mean, like me - if I get my credit all screwed up over some business that slipped a charge on me for some "professional services listing" and I refused to pay, I might be denied a job because of that stain. And they know this.
So, I try to keep any monthly billing I have to as few of entities as possible. Once a company has legitimate billing access, they have a foot in the door that a telemarketer can use to fool me into thinking I am doing business with somebody I am already doing business with... like the way they bamboozled the guy with the trick 4-in-one question that if he said "yes" ( which was the obvious answer to three of the questions - if the name, address, and number was correct ), he implies acceptance of the quickly stated fourth question - that he is authorized to modify his billing.
With a business model out now that depends on signing up monthly billing, I see the opportunity for scamming artists soaring, as the number of open accounts, ripe for modification, soars.
I continue all attempts to make purchases on a per-instance basis, meaning I pay full price for the product and close the sale, leaving no loose ends. None of this "support", "warranty", "revolving charge account", etc. I walk out the door with the product, and the vendor has been paid in full. That way things don't change after the agreement has been made.
I have done way too much business already with businesses ( especially insurance companies, and any company having anything to do with investments ) that love to send me tons of paper describing changes after I have agreed to something.
Damm, I just don't have time to read it all. I really *hate* to do business under that business model.
This is the thing that had me so worked up over the Lexmark Printer thing ( where Static Control Concepts tried to make an aftermarket replacement toner cartridge but ran afoul of DMCA because Lexmark put a chip in the toner cartridge, and SCC could not legally duplicate the chip. ). Once this paradigm catches on in the business community, I fear we will see the end of going to WalMart to get replacement aftermarket goods for our day-to-day expendables. Companies could demand and get agreements for monthly billings, and once that's in place, the door is wide open for rampant trickery to modify those agreements.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]
After the telemarketing got too bad, I dumped my landline for a cel-only lifestyle. Eventually, telemarketers got the cel number. But then I found out that NY State, among others, has a free "Do not call" registry, which really works:
https://www.nynocall.com/index.html
The tech contracting company I work for had a small outsource development section. We host a few websites and we've been getting these ICLS 'bills' for a while.
Even more disturbing are the numerous pieces of mail we receive that look JUST LIKE Network Solutions' renewal notices except that they refer you to some website that's not affiliated with them.
Several of our clients have received these misleading 'bills' or 'warnings' and have contacted us out of concern that they were about to lose their service or whatever.
-V
... "I read part of it all the way through." -- Movie Mogul Sam Goldwyn (and some slashdot readers)
A lot of scams could be nipped in the bud by
one simple right. I should have the RIGHT to
request that only my phone company put charges
on my phone bill.
My cable company does not put charges on my
electric bill.
My electric company does not put charges on
my gas bill.
My gas company does not put charges on my
water bill.
But my phone company tells me that by law they
must put charges on my bill from carriers, even
if I don't have a business relationship with
them.
Of course you have the right to remand a charge
and have the company bill you for it. But you
have to notice the charge first. I'll tell you,
the phone bill is the one bill I scrutinize every
month. I have had several fraudulent charges on
my bill in the last 5 years.
If scam artists had to bill you direct like any
other business, that would not eliminate fraud,
but it would keep people from going 8 months
without even noticing.