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Comcast Employees Stole, Sold Identities of Customers; Comcast Tells Victims to Pay Fraudulent Charges

Phillip Dampier October 15, 2014 Comcast/Xfinity, Consumer News, Public Policy & Gov't 12 Comments

crimeA Tennessee man is facing $1,300 in unauthorized cable charges and ruined credit after at least one Comcast employee allegedly stole his identity and provided it to an outside vendor who signed up new Comcast customers who never had any intention of paying their bills.

Ricky McClure of Murfreesboro first learned about the fraud when collection agencies working for Comcast sent him collection notices demanding payment of a combined $1,300 in unpaid charges made in his name in Shreveport, La.

McClure is already a Comcast customer, and he does not pay his cable bill late, so he called Comcast over what he thought was a simple billing error and ran into a customer service buzz saw.

“Comcast basically said the name and social matches what we have on record so this is your account. You need to pay the money and we’re not going to pull it back from collections,” McClure told WKRN-TV.

McClure was left investigating the mysterious charges on his own and discovered the extra accounts on his credit report, both using his Social Security number, and opened without his permission. Even more disturbing, the service addresses on file were in a city McClure has no ties to.

"Where is our money, lady?"

“Where is our money, lady?”

“It’s very alarming. You don’t know who is going to be calling you next,” said McClure.

Comcast’s customer service seemed unconcerned McClure’s identity was stolen. They simply wanted to clear up the matter of the $1,300 in unpaid charges. In fact, Comcast reserves the right to terminate an identity theft victim’s own service until the billing matter is settled or the fraud verified.

An isolated incident? Not quite.

Stop the Cap! reader John Spencer (not his complete real name at his request) in Nashville was also a victim of Comcast fraud. He wrote to share the story of McClure, which he recognized only too well. He faced over $2,000 in Comcast bills sent to collections for another “customer” in Shreveport. This time, the thieves were smart enough to submit a change of address for the bills headed for Louisiana, claiming it was a vacation property. The collection agency finally connected the Social Security number to Spencer’s address in Nashville and commenced collection activity that dropped his FICO score by more than 90 points, which now hovers around 600. Spencer’s damage went far beyond dealing with persistent collection calls. Alarmed credit card issuers running periodic credit checks suspended or slashed Spencer’s credit lines because he was suddenly a credit risk, and Verizon wants him to pay a deposit on his new cell phone account. His car insurance even went up $65 semi-annually, the insurance company explained, because his credit score necessitated a re-evaluation of his rate.

It took over three months for Comcast to finally get the negative information off his credit report, and nine months later he is still trying to get his former credit reputation back. While credit card companies did restore his former credit lines, they made new credit inquiries before granting his request, which has cost him 40 points on his restored FICO score for “excessive credit inquiries.” Verizon won’t budge on demanding a deposit, and his insurance company will reconsider his rate only after it comes up for renewal.

Comcast's identify theft reporting form runs six pages and requires a police report, a notarized signature, and  copies of your valuable photo ID.

Comcast’s identify theft reporting form runs six pages and requires a police report, a notarized signature, and copies of your valuable photo ID.

Identity theft has become pervasive enough at Comcast that the company dedicates a special section of its website to accept reports from customers victimized by unauthorized charges.

Comcast doesn’t offer much of a shoulder to cry on either, sternly telling victims they must complete and sign a notarized affidavit, attach a police report for the claim, and prove to Comcast’s satisfaction where they actually live.

Some customers already victimized by Comcast once aren’t too happy about another requirement – providing a copy of a valid government-issued photo ID like a driver’s license or passport. If Comcast employees were willing to peddle your Social Security number for quick cash, imagine what they can get for a copy of your driver’s license.

Don’t expect the collection calls to end immediately either. Comcast warns it considers all accounts valid and payable amounts due until proven otherwise.

San Francisco area customer Tammerlin Drummond was also a victim of a rogue Comcast employee who sold her Social Security number and address to an unknown third-party who opened an account and collected a bounty of cable equipment.

Comcast billed Drummond $442.13 for service at an address she had nothing to do with. Ironically, Comcast sent Drummond a separate letter claiming that the security of her account was “a top priority at Comcast” and included a PIN number.

Comcast doesn’t like to break a sweat investigating these scams and kept the fraudulent account open while putting Drummond on its customer fraud treadmill, insisting she do all the work completing the aforementioned affidavit. Another representative even suggested visit a Comcast store in Oakland because people associated with the fraudulent account were recently there to pick up more cable equipment.

“She gave me the ID of the rep who had handled the transaction and suggested I might go to the store to ask if he remembered anything,” Drummond wrote in a column published by the Contra Costa Times. “She said there was a lot of activity connected to my Social Security number and that it was an obvious case of fraud. It smelled like an inside job to me, and I told her so.”

Comcast admitted in all three cases different employees used their positions at the cable company to access customers’ Social Security numbers and other personal information and resell it to other criminals that offer “free” cable service or tell customers to pay them, not Comcast, for “discounted service.”

The two cases in Shreveport were never uncovered by Comcast. It took the initiative of the Shreveport Police Department to launch an investigation last March. Comcast first learned about it not from customers, but from the police department who contacted the cable company about the problem.

tn laVictims were eventually sent letters from Comcast explaining what happened:

“Based on what we know at this time, a small group of individuals employed by a third-party vendor and a former Comcast employee were engaged in identity theft and theft of Comcast services. These individuals may have used your information, including your name and/or social security number, for these unauthorized purposes.”

The letter goes on to say the company is offering a complimentary identity protection plan for a year.

But identity protection may not help much if Comcast can’t secure its customers private, personal information.

Out in San Francisco, Comcast spokesman Bryan Byrd told Drummond a Comcast employee had opened the fraudulent account and that “he has been dealt with.”

Comcast has closed the account, erased the bill and removed the mess from her credit report. Because Drummond was a victim, anyone (including her) will now need to show ID and proof of residence before opening a Comcast account — provisions that would likely protect every Comcast customer from identity theft if broadly enforced.

“It makes you wonder how protected one’s personal data is,” Drummond complained. “How many others did this rogue employee target?”

Comcast says these are all isolated incidents and not a pattern to a wider problem. But apologies are not forthcoming to Mr. McClure or Spencer.

Alex Horwitz, a Comcast spokesperson in Tennessee released the following statement:

“We take this matter very seriously and, out of an abundance of caution, we have contacted a small number of people whose information may have been used to create unauthorized accounts and are providing them with credit monitoring services. We have no evidence that this was an online system breach or that any additional personal information was obtained or used for any other purpose. We are continuing to cooperate with law enforcement and are conducting our own internal investigation. The individuals involved in this are no longer working on our behalf, and we have reinforced our privacy and security policies with employees and third-party vendors.”

Comcast won’t comment on how many cases of identity theft it deals with annually.

[flv]http://www.phillipdampier.com/video/WKRN Nashville Man gets 1-3K in Comcast bills 10-15-14.mp4[/flv]

Several mid-Tennessee Comcast customers have been victims of identity theft, discovering unpaid Comcast bills run up in their names for service several states away. WKRN in Nashville shares the story of Ricky McClure, who faced $1,300 in Comcast charges sent to collections he didn’t owe. (2:41)

South Korea Prepares for 10Gbps Broadband; Transfer 1GB File in 0.8 Seconds

Phillip Dampier October 14, 2014 Broadband Speed, Consumer News, Public Policy & Gov't 35 Comments

sk 10 gigWhile AT&T and Verizon argue over an FCC proposal that would set 10Mbps as America’s new minimum speed to qualify as “broadband,” South Korea is positioning itself to introduce 10Gbps fiber service.

SK Broadband will introduce its new 10 gigabit per second Internet service at the Oct. 20 Plenipotentiary Conference of the International Telecommunications Union to be held at Busan’s BEXCO Center, in partnership with the Ministry of Science, ICT and Future Planning and the National Information Society Agency.

With the latest advances in broadband technology coming mostly from Asian countries like Japan and South Korea, citizens of both countries are proud of the fact they are way ahead of the United States.

“In the 1960s the world watched NASA send men to the moon and many of us grew up amazed at the constant advancements of the Americans,” said Natsuki Kumagai. “Now the Americans watch us.”

“In my travels to the United States, it is very plain they have lost their way in advancing broadband technology,” said Pyon Seo-Ju. “Internet access is terribly slow and expensive because American politicians have sacrificed Americas’s technology leadership to protect conglomerates and allow them to flourish. Although unfortunate for America, this has given Korea a chance to promote our own industry and enhance the success of companies like Samsung that are well-known in the United States today.”

SK Broadband says its 10Gbps will be 100 times faster than Korea’s current average broadband speed of 100Mbps. Downloading a 1GB file takes 80 seconds with Korea’s average broadband connection today. SK’s new 10Gbps service will download the same file in 0.8 seconds.

The broadband company’s booth doesn’t hold back touting its global leadership in broadband, with the slogan “World’s Fastest, World’s First” seen throughout the conference center.

New York Public Service Commission Refuses to Release Notes from Private Meetings With Comcast

Phillip Dampier October 13, 2014 Comcast/Xfinity, Competition, Public Policy & Gov't Comments Off on New York Public Service Commission Refuses to Release Notes from Private Meetings With Comcast

ny pscSeven staff members from the New York’s Public Service Commission privately met with representatives of Comcast and Time Warner Cable on April 10, April 24, and May 8, 2014 and the regulator is refusing to disclose exactly what was discussed.

Despite repeated requests from Common Cause NY, the PSC has been less than completely forthcoming releasing:

  • Documents provided at the meetings by representatives of Comcast and Time Warner;
  • Documents provided to Comcast or Time Warner representatives by the Department of Public Service;
  • Minutes of the meetings;
  • Notes taken by public officials or their staff in attendance.

NY PSC Secretary Kathleen Burgess did indicate “no documents were provided to or received from DPS staff, Comcast or Time Warner at the aforementioned meetings,” adding “no other records responsive to your request could be found in the possession of the department.”

That might have been the end of it had we not discovered that staff members created 31 pages of handwritten and typed impressions of the presentations offered by the two cable companies — vital clues about precisely what was discussed behind closed doors.

Despite a confirmation from Secretary Burgess that these notes do, in fact, exist, she has refused all requests to release them to the public.

“Because they are deliberative rather than ‘statistical or factual tabulations or data,’ they are not subject to disclosure under the intra agency exemption,” Burgess declared. “Accordingly, I deny your appeal.”

The public was not allowed to attend the meetings, one of which was attended by Public Service Commission chairwoman Audrey Zibelman and Commissioner Gregg Sayre. On April 10, they met with executives from the two cable companies, according to public schedules. They were joined by Allison Lee, a lobbyist for the firm representing Time Warner Cable and Tom Congdon, Gov. Andrew Cuomo’s Assistant Secretary for Energy. What was discussed has been kept secret to this day.

Time Warner Cable’s presence is well-felt in Albany. The cable operator is one of the state’s top lobbyists, spending nearly $500,000 on New York politicians in 2013 alone. Both Time Warner and Comcast have donated a combined $200,000 to Gov. Cuomo’s campaign accounts.

New York has put Comcast’s merger application on hold until November. Last week more than 99 percent of shares held by stockholders of both cable companies were voted in favor of the deal.

Cable Lobby Forgot to Mention It’s the Sole Backer of Sock Puppet Group ‘Onward Internet’

Phillip Dampier October 9, 2014 Astroturf, Consumer News, Editorial & Site News, Net Neutrality, Public Policy & Gov't, Video Comments Off on Cable Lobby Forgot to Mention It’s the Sole Backer of Sock Puppet Group ‘Onward Internet’

onward-internetWith millions at stake charging content producers extra for guaranteed fast lanes on the Internet, some lobbyists will go to almost any length to throw up roadblocks in opposition to Net Neutrality.

The sudden appearance of Onward Internet, a group that erects enormous “Internet suggestion boxes” at busy intersections in New York and San Francisco is a case in point.

At least a half-dozen 20-somethings, some dressed for a science fiction convention, staff the displays while encouraging people to write and toss in their own ideas about what they expect from the Internet over the next decade.

A higher bill and usage caps, unsurprisingly, were not among the suggestions. But it is doubtful the mysterious people behind Onward Internet are interested in hearing that.

Advocacy group ProPublica spent weeks trying to find who was paying for the youthful exuberance, giant black boxes, and hopelessly optimistic YouTube videos telling viewers the Internet was made to move data, and how amazing it was your Internet Service Providers valiantly kept up with the demand, helped connect industries and even topple dictatorships. Well, not corporate dictatorships in this country anyway.

With that kind of “feel good” message, ProPublica undoubtedly smelled industry money, especially after seeing lines like, “The Internet is a wild, free thing; unbounded by limits, unfettered by rules, it’s everyone’s responsibility to ensure that the Internet continues to advance.” But it took a leak from a worker hired to file permits and buy space in San Francisco for the street displays to finally blow the whistle.

Onward Internet = the National Cable and Telecommunications Association, America’s largest cable industry lobbyist.

This appears to be a repurposed dumpster.

This appears to be a repurposed dumpster.

You couldn’t find a bigger critic of Net Neutrality if you tried.

The NCTA played coy with ProPublica when the group first confronted the cable lobby with the evidence.

“What led you to the conclusion that this is an NCTA effort,” asked NCTA spokesman Brian Dietz.

Busted, Dietz followed up with a statement suggesting the NCTA needed to keep its involvement top-secret because it might ‘bias’ the feedback they received:

“We’ve kept NCTA’s brand off Onward Internet because we want to collect unbiased feedback directly from individuals about what they want for the future of the Internet and how it can become even better than it is today,” Dietz told ProPublica. “The cable industry is proud of our role as a leading Internet provider in the U.S. but we feel it’s important to hear directly from consumers about how they envision the future so we can work hard on delivering it.”

“We had always intended to put the NCTA brand on it but we wanted to collect as much unbiased feedback as we could for a few weeks before putting our name on it,” Dietz later told VentureBeat.

The NCTA is hoping unwitting consumers submit comments they can use to oppose Net Neutrality and Title 2 reclassification of broadband as a “telecommunications service.”

Because if that happens, the Money Party may end before it even begins.

The NCTA’s astroturf effort is nothing new. A panoply of well-funded, telecom-industry backed sock puppet groups muddy the waters on these issues everyday, from Broadband for America to various think tanks and bought and paid for researchers.

[flv]http://www.phillipdampier.com/video/Onward Internet Decide the future of the Internet 10-8-14.mp4[/flv]

Onward Internet is hoping you will share comments they can use to prove you oppose Net Neutrality. The NCTA is a strong opponent of Net Neutrality, which allows LOLCATS, movies, and dictatorship toppling to occur without paying even MORE money to the cable company for a fast lane that should have been fast in the first place, considering how much we are spending on it. Now Big Cable also want usage caps and allowances. The revolution has been capped. (1:22)

5+ Years After Fraudulent Cramming Fees Began, AT&T Agrees to Pay $105 Million Fine/Restitution

AT&T aids and abets cramming fraud by making it hard to identify on customer bills.

AT&T aids and abets cramming fraud by making it hard to find on customer bills.

More than five years after complaints began rolling into AT&T from wireless customers finding unauthorized charges on their monthly bills, the Federal Trade Commission and Federal Communications Commission today announced those customers deserve a refund, and AT&T has agreed to pay $80 million towards restitution for their complicity in bill cramming.

As part of a $105 million settlement with federal and state law enforcement officials, AT&T Mobility LLC will pay $80 million to the Federal Trade Commission to provide refunds to consumers the company unlawfully billed for unauthorized third-party charges, a practice known as mobile cramming. The refunds are part of a multi-agency settlement that also includes $20 million in penalties and fees paid to 50 states and the District of Columbia, as well as a $5 million penalty to the Federal Communications Commission.

In its complaint against AT&T, the FTC alleges that AT&T billed its customers for hundreds of millions of dollars in charges originated by other companies, usually in amounts of $9.99 per month, for subscriptions for ringtones and text messages containing love tips, horoscopes, and “fun facts.” In its complaint, the FTC alleges that AT&T kept at least 35 percent of the charges it imposed on its customers, a lucrative incentive for AT&T to keep the cramming charges coming.

“I am very pleased that this settlement will put tens of millions of dollars back in the pockets of consumers harmed by AT&T’s cramming of its mobile customers,” said FTC chairwoman Edith Ramirez. “This case underscores the important fact that basic consumer protections – including that consumers should not be billed for charges they did not authorize – are fully applicable in the mobile environment.”

Beginning today, consumers who believe they were charged by AT&T without their authorization can visit www.ftc.gov/att to submit a refund claim and find out more about the FTC’s refund program under the settlement. If consumers are unsure about whether they are eligible for a refund, they can visit the claims website or contact the settlement administrator at 1-877-819-9692 for more information.

This case is part of a larger FTC effort to clamp down on mobile cramming. This is the FTC’s seventh mobile cramming case since 2013, and its second against a mobile phone carrier this year. The FTC filed a complaint against T-Mobile in July, and that case is ongoing. The Commission also issued a staff report on mobile cramming in July. The FTC mobile cramming cases build on the FTC’s extensive law enforcement work over the last decade to combat cramming on landline phone bills.

The FTC’s investigation into AT&T showed that the company received very high volumes of consumer complaints related to the unauthorized third-party charges placed on consumer’s phone bills. For some third-party content providers, complaints reached as high as 40 percent of subscriptions charged to AT&T consumers in a given month. In 2011 alone, the FTC’s complaint states, AT&T received more than 1.3 million calls to its customer service department about the charges.

According to the complaint, in October 2011, AT&T altered its refund policy so that customer service representatives could only offer to refund two months’ worth of charges to consumers who sought a refund, no matter how long the company had been billing customers for the unauthorized charges. Prior to that time, AT&T had offered refunds of up to three months’ worth of charges. At that time, AT&T characterized its change in policy as designed to “help lower refunds.”

In February 2012, one AT&T employee said in an e-mail that “Cramming/Spamming has increased to a new level that cannot be tolerated from an AT&T or industry perspective,” but according to the complaint, the company did not act to determine whether third parties had in fact gotten authorization from consumers for the charges placed on their bills. In fact, the company denied refunds to many consumers, and in other cases referred the consumers to third-parties to seek refunds for the money consumers paid to AT&T.

The structure of AT&T’s consumer bills compounded the problem of the unauthorized charges, according to the complaint, by making it very difficult for customers to know that third-party charges were being placed on their bills. On both the first page of printed bills and the summary of bills viewed online, consumers saw only a total amount due and due date with no indication the amount included charges placed on their bill by a third party. The complaint alleges that within online and printed bills, the fees were listed as “AT&T Monthly Subscriptions,” leaving consumers to believe the charges were part of services provided by AT&T.

Under the terms of its settlement with the FTC, AT&T must notify all of its current customers who were billed for unauthorized third-party charges of the settlement and the refund program by text message, e-mail, paper bill insert and notification on an online bill. Former customers may be contacted by the FTC’s refund administrator.

In addition to the refund requirements, AT&T is also required to obtain consumers’ express, informed consent before placing any third-party charges on a consumer’s mobile phone bill. In addition, the company must clearly indicate any third-party charges on the consumers’ bill and provide consumers with the option to block third-party charges from being placed on their bill.

The Commission vote authorizing the staff to file the complaint and approving the proposed stipulated order was 5-0. The FTC filed the complaint and proposed stipulated order in the U.S. District Court for the Northern District of Georgia. The proposed stipulated order is subject to court approval.

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