Phone Scam has "Crammed" Sweepstakes out of Number One Spot
Top Five Scams of 1998 Released

      "We were shocked to learn that we had nearly three times as many reports about cramming as we did about phony prize offers, which had perennially ranked number one," said NFIC Director Susan Grant. "Cramming wasn't even among the 1997 top frauds, and now it's outnumbered the second reported scam, slamming, two-to-one."

      More than two out of five con artists (44 percent) are using the phone bill as the preferred method of payment, according to statistics released by the National Fraud Information Center, a project of the National Consumers League.

     The top five scams are:

1. Cramming -- Billing consumers for optional services they never ordered
2. Slamming -- In the first six month of 1998, more consumers have reported slamming (phone service switched to another carrier) incidents to the NFIC than in all of 1997.
3. Advance Fee Loans -- Empty promises of personal or business loans, requiring payment of fees in advance; many companies operating out of Canada.
4. Sweepstakes -- Phony prize awards that require payment of fees first -- and never appear.
5. Work-at-home scams -- Kits sold to stuff envelopes, make jewelry, or perform other work-at-home -- with false promises of huge profits.

      Many consumers who contact the NFIC about cramming and slamming are worried that their service will be disconnected if they refuse to pay the charges. Con artists also exploit the fact that because telephone bills are so long and complicated, it's hard for consumers to spot unauthorized charges.

      The top ten states being crippled by cramming are:

1. New York
2. Maryland
3. Massachusetts
4. New Jersey
5. Pennsylvania
6. Virginia
7. California
8. Rhode Island
9. Ohio
10. West Virginia

1. New York
2. Massachusetts
3. New Jersey
4. Pennsylvania
5. Maryland
6. Virginia
7. Texas
8. Illinois
9. New Hampshire
10. Florida

      Regional statistics on the top 5 for 1998:

• Everything is bigger in Texas: Texas ranks as number one place where cramming companies are operating, according to NFIC statistics. The state ranks second in company locations for slamming. Texas consumers are being scammed by advance-fee loans more frequently than anywhere else in the U.S.
• Small State, Big Problem: New Hampshire is number 9 when it comes to slamming complaints.

• Be careful when calling unfamiliar 800 or 900 numbers. Be especially wary of following instructions to "enter activation code numbers" or answering yes to questions that may unwittingly result in authorizing unwanted telephone services.
• Read fine print before filling out a contest form or coupon offer
• Scrutinize each page of your phone bill carefully every month as soon as you receive the bill to make sure that there are no unauthorized charges. Call your local phone company if you see something you are unsure about. If there is an unauthorized charge, call your local phone company to let it know that you are disputing a charge and why.
• Contact the National Fraud Information Center to complain (800-876-7060)
• Send a letter describing what happened and enclosing a copy of the bill to the Federal Communications Commission, Consumer Protection Branch, mail Stop 1600A2, Washington, DC 20554.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. The NCL's three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concern.

Editor's note: The NCL brochure "You Make the Call" offers tips for consumers on cramming and other phone issues, including slamming and long-distance scams. The brochure is available via the NCL web site: www.nclnet.org