Premium Rate Fraud: Regulatory loop holes or Government arse holes

[El Gringo]

http://www.ofcom.org.uk/static/archi...01/pr72_01.htm
31 October 2001

Measures to stamp out scams through the misuse of personal numbers were announced today by Oftel.

Personal numbers, which begin with the prefix 070, are known as ‘find me anywhere numbers’. They forward calls to specified telephone numbers, including mobile phone numbers.

Oftel’s action follows a number of scams where consumers were encouraged to call 070 numbers. As the charges for calling personal numbers are usually higher than the cost of a normal fixed or mobile call, some customers unintentionally ran up large bills.

Oftel has banned revenue sharing on 070 numbers, which means that the holders of personal numbers can no longer take a share of the profits made from making a call.

David Edmonds Director General of Telecommunications said:

"I have closed a loophole which some companies exploited, causing consumers to run up large bills through lengthy calls to 070 numbers.
[]
Oftel worked closely with ICSTIS, the premium rate services watchdog, to reach this solution. George Kidd, Director of ICSTIS, said:

"The vast majority of premium rate services operate on the correct 090 number range without problems or complaints. However, in the last few months we have become very concerned by a noticeable increase in public complaints and other enquiries about premium rate services operating incorrectly on 070 numbers.

"As a result, we have investigated a number of premium rate competition, fax-back, consumer credit and adult entertainment services operating on 070 numbers in clear breach of our Codes of Practice and have imposed appropriate sanctions, including fines and bars on access, on the companies responsible."

Notes to editors

1 Oftel's statement Restoring trust............

http://www.publications.parliament.u...t/30520-09.htm
20 May 2003

Lord Baker of Dorking: I express support for the general tenor of the regulation envisaged in these clauses, and the regulation that we debated earlier—the general powers of Ofcom—as they are all interrelated. I should declare an interest in that I am chairman of an ISP that provides Internet services to small and medium-sized companies, and of a company that provides mobile services, some of whose revenue is drawn from premium rate services.

Because I have experience of those industries, I am convinced that the regulation envisaged in the Bill is necessary and appropriate. I bring a certain amount of experience to this debate. It fell to me in the 1980s to introduce the original legislation establishing Oftel, and to privatise BT and Cable & Wireless. It was the first time that we had had to grapple with the concept of the regulation of a major industry.

http://www.mirror.co.uk/news/top-sto...9520-14673348/
NO PRIZES FOR BAKER'S CRUST
23/09/2004

WHAT a shabby way for former Home Secretary Lord Baker to earn some dough...

The millionaire ex-Tory minister is now chairman and a major investor in a £25million phone company which is sending "prize" letters to homes across the country.

Monstermob makes most of its money selling ringtones for mobiles while Sunderland-based subsidiary Mediaprom is in the junk-mail business.
http://www.phonepayplus.org.uk/busin...eywords=&cmd=2

http://www.publications.parliament.u.../324/32405.htm
Select Committee on Deregulation
28 APRIL 1998
The Committee deliberated.

The Rt Hon Dr David Clark MP, Chancellor of the Duchy of Lancaster, Mr George Kidd, Deputy Director, Better Regulation Unit, and Mr Philip Bovey, Legal Adviser, Better Regulation Unit, were examined.

http://www.phonepayplus.org.uk/news/...r_20081219.asp
NOTICE TO INDUSTRY: NETWORK DUE DILIGENCE
19 December 2008

Complaints to PhonepayPlus indicate concern among consumers over the increased abuse of 070 prefixed numbers.
[]
Background

Ofcom has designated 070 numbers for use only as personal ‘follow me' numbers, which are charged at a higher rate. Ofcom does not allow end user revenue share on 070 numbers.

.