FTC Asks Court to Order Permanent Halt to Telephone Record Pretexting
As the Hewlett-Packard pretexting fraud scandal intensifies with criminal charges and arrest warrants, the Federal Trade Commission (FTC) revealed it has settled charges against a call-detail broker that will be barred from selling such information and from the pretexting technique used to gain such data.
"The settlement bars the defendants from obtaining or selling consumers' confidential phone and credit account records unless authorized by law or court order and requires that they give up the money they made selling phone records in the past," the FTC says.
FTC asks court to order permanent halt to telephone record pretexting phone records obtained by deception were unlawfully sold to third parties.
"The settlement bars the defendants from obtaining or selling consumers' confidential phone and credit account records unless authorized by law or court order and requires that they give up the money they made selling phone records in the past," the FTC says.
FTC asks court to order permanent halt to telephone record pretexting phone records obtained by deception were unlawfully sold to third parties.
The Federal Trade Commission has asked a U.S. district court to order a permanent halt to operations that deceptively obtained and sold consumers’ confidential phone records without their knowledge or consent.
The agency alleges the practice is not only unfair and deceptive in violation of federal law, but could endanger consumers’ safety. The agency also will ask the court to order the defendants to give up their ill-gotten gains.
According to the FTC complaint, the Telecommunications Act of 1996 provides that customers’ phone records may only be disclosed "upon affirmative written request by the customer." But since at least 2005, the defendants have obtained confidential customer phone records, including lists of calls made and the dates, times, and duration of the calls, and sold them to third parties, without the knowledge or consent of the customers.
In order to get the records, the defendants used and caused others to use "false pretenses, fraudulent statements, fraudulent or stolen documents or other misrepresentations, including posing as an account holder or as an employee," of the phone company.
According to the FTC complaint, the Telecommunications Act of 1996 provides that customers’ phone records may only be disclosed "upon affirmative written request by the customer." But since at least 2005, the defendants have obtained confidential customer phone records, including lists of calls made and the dates, times, and duration of the calls, and sold them to third parties, without the knowledge or consent of the customers.
In order to get the records, the defendants used and caused others to use "false pretenses, fraudulent statements, fraudulent or stolen documents or other misrepresentations, including posing as an account holder or as an employee," of the phone company.
The agency alleges the defendants have offered to sell the confidential phone records to third parties. Selling the records constitutes an invasion of privacy that could endanger the health and safety of consumers, the FTC charges.
There are four call-brokerage cases still in litigation, according to the FTC: 77 Investigations Inc. and Reginald Kimbro, based in Upland, Calif., and using mailing addresses in Jacksonville, Fla., Broomfield, Colo., and Nashville, Tenn.; AccuSearch Inc. (dba Abika.com) and Jay Patel, based in Cheyenne, Wyo.; CEO Group Inc. (dba Check Em Out) and Scott Joseph, based in Ft. Lauderdale, Fla.; and Information Search Inc., and David Kacala, based in Baltimore, Md.
Several major wireless and wireline service providers also have filed private legal action against call brokers, and they've been petitioning the courts to halt the businesses permanently. State attorneys general also have been taking action where applicable.
In related efforts, the FTC is working with the U.S. Department of Justice and some 15 federal agencies and departments on an Administration- organized "identity theft task force." It's made some early interim recommendations to help address the problem of identity theft, especially over the Internet, in advance of a final report and strategic plan due in November.
There are four call-brokerage cases still in litigation, according to the FTC: 77 Investigations Inc. and Reginald Kimbro, based in Upland, Calif., and using mailing addresses in Jacksonville, Fla., Broomfield, Colo., and Nashville, Tenn.; AccuSearch Inc. (dba Abika.com) and Jay Patel, based in Cheyenne, Wyo.; CEO Group Inc. (dba Check Em Out) and Scott Joseph, based in Ft. Lauderdale, Fla.; and Information Search Inc., and David Kacala, based in Baltimore, Md.
Several major wireless and wireline service providers also have filed private legal action against call brokers, and they've been petitioning the courts to halt the businesses permanently. State attorneys general also have been taking action where applicable.
In related efforts, the FTC is working with the U.S. Department of Justice and some 15 federal agencies and departments on an Administration- organized "identity theft task force." It's made some early interim recommendations to help address the problem of identity theft, especially over the Internet, in advance of a final report and strategic plan due in November.
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