For additional calling card fraud information, please check out some of the links and resources below.
From the Federal Trade Commission
The FTC is the chief enforcer against calling card abuse and fraud in the United States. In addition to the links cited below, you can also search the FTC site to find many additional articles and reports about FTC calling card actions.
- FTC Testifies on Prepaid Phone Card Fraud - Excerpt: "The Federal Trade Commission today told the U.S. Senate Committee on Commerce, Science, and Transportation that while the FTC will continue its aggressive law enforcement and consumer education programs in the prepaid calling card arena, pending legislation would benefit consumers by providing “an additional remedy to those already available to the Commission.”
- Buying Time: The Facts About Pre-Paid Phone Cards - Excerpt: "...the Federal Trade Commission (FTC), the nation’s consumer protection agency, says that some pre-paid phone cards can have hidden costs. As a result, they don’t deliver the number of calling minutes they advertise. Because you pay in advance, you may be out of pocket — and out of luck — if you discover a problem trying to use the card. That’s a big difference between pre-paid phone cards and traditional long distance calling cards, where charges don’t appear on your bill until after you’ve made the call."
- Companies Agree to Pay $2.25 Million as Part of FTC Crackdown on Fraud in the Prepaid Calling Card Industry - Excerpt: "In its lawsuit, the FTC charged that the companies misled consumers about the number of minutes of talk time their prepaid calling cards provided. The FTC’s testing showed that consumers received only about half the advertised minutes. In addition, the FTC alleged that the defendants’ cards carried hidden fees. For example, while the defendants’ ads for their cards often prominently claimed “no connection fees;” they then failed to clearly disclose a host of random fees, such as “hang-up” and “maintenance” fees and “destination surcharges” that could wipe out the value of the cards. Such fees were, at best, “disclosed” in tiny font in confusing terms that were incomprehensible in any language. At the request of the FTC, shortly after the case was filed, the court issued an order temporarily halting these deceptive practices and appointed a monitor to ensure the defendants’ compliance with the law."
From the Hispanic Institute
The Hispanic Institute has taken an active interest in calling card scams because Hispanics and other immigrant communities are frequently targeted by fraudulent calling card marketers.
- Calling Card Study: Stop Calling Card Abuse and Fraud - Findings of an in-depth study on calling card abuse, including the report cited below. While their study found that properly working cards can save a considerable amount over other types of calling, the prevalence of abuse or outright fraud is high. Specifically, their analysis shows that most cards deliver only about about 60% of cards in the advertised minutes.
- Calling Card Verification Test Plan - Results of a rigorous study of various calling cards, with informative graphs showing call completion rate, post dial delay, call quality, and advertised vs. actual minutes received.
From the Florida Attorney General
Starting in 2007, the Florida Attorney General began an investigation into calling card fraud after receiving over 200 consumer complaints. In the summer of 2008, the Attorney General announced settlements with a total of 11 companies for deceptive calling card marketing and fraud. Below are links to the series of settlement announcements.
Other Links & Resources
Starting in 2007, the Florida Attorney General began an investigation into calling card fraud after receiving over 200 consumer complaints. In the summer of 2008, the Attorney General announced settlements with a total of 11 companies for deceptive calling card marketing and fraud. Below are links to the series of settlement announcements.
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For additional calling card fraud information, please check out some of the links and resources below.
From the Federal Trade Commission
The FTC is the chief enforcer against calling card abuse and fraud in the United States. In addition to the links cited below, you can also search the FTC site to find many additional articles and reports about FTC calling card actions.
- FTC Testifies on Prepaid Phone Card Fraud - Excerpt: "The Federal Trade Commission today told the U.S. Senate Committee on Commerce, Science, and Transportation that while the FTC will continue its aggressive law enforcement and consumer education programs in the prepaid calling card arena, pending legislation would benefit consumers by providing “an additional remedy to those already available to the Commission.”
- Buying Time: The Facts About Pre-Paid Phone Cards - Excerpt: "...the Federal Trade Commission (FTC), the nation’s consumer protection agency, says that some pre-paid phone cards can have hidden costs. As a result, they don’t deliver the number of calling minutes they advertise. Because you pay in advance, you may be out of pocket — and out of luck — if you discover a problem trying to use the card. That’s a big difference between pre-paid phone cards and traditional long distance calling cards, where charges don’t appear on your bill until after you’ve made the call."
- Companies Agree to Pay $2.25 Million as Part of FTC Crackdown on Fraud in the Prepaid Calling Card Industry - Excerpt: "In its lawsuit, the FTC charged that the companies misled consumers about the number of minutes of talk time their prepaid calling cards provided. The FTC’s testing showed that consumers received only about half the advertised minutes. In addition, the FTC alleged that the defendants’ cards carried hidden fees. For example, while the defendants’ ads for their cards often prominently claimed “no connection fees;” they then failed to clearly disclose a host of random fees, such as “hang-up” and “maintenance” fees and “destination surcharges” that could wipe out the value of the cards. Such fees were, at best, “disclosed” in tiny font in confusing terms that were incomprehensible in any language. At the request of the FTC, shortly after the case was filed, the court issued an order temporarily halting these deceptive practices and appointed a monitor to ensure the defendants’ compliance with the law."
From the Hispanic Institute
The Hispanic Institute has taken an active interest in calling card scams because Hispanics and other immigrant communities are frequently targeted by fraudulent calling card marketers.
- Calling Card Study: Stop Calling Card Abuse and Fraud - Findings of an in-depth study on calling card abuse, including the report cited below. While their study found that properly working cards can save a considerable amount over other types of calling, the prevalence of abuse or outright fraud is high. Specifically, their analysis shows that most cards deliver only about about 60% of cards in the advertised minutes.
- Calling Card Verification Test Plan - Results of a rigorous study of various calling cards, with informative graphs showing call completion rate, post dial delay, call quality, and advertised vs. actual minutes received.
From the Florida Attorney General
Starting in 2007, the Florida Attorney General began an investigation into calling card fraud after receiving over 200 consumer complaints. In the summer of 2008, the Attorney General announced settlements with a total of 11 companies for deceptive calling card marketing and fraud. Below are links to the series of settlement announcements.
Other Links & Resources
Starting in 2007, the Florida Attorney General began an investigation into calling card fraud after receiving over 200 consumer complaints. In the summer of 2008, the Attorney General announced settlements with a total of 11 companies for deceptive calling card marketing and fraud. Below are links to the series of settlement announcements.
Back to top
