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Last Updated: Monday, 13 June, 2005, 15:27 GMT 16:27 UK
Crackdown on rogue phone services
Phone graphic
Icstis is seeking to discourage rogue operators
A move to slow the flow of money to firms running rogue premium-rate phone operations has been proposed by Icstis, the premium-rate services regulator.

It wants payments made by phone networks to their premium-rate service providers to be delayed until at least 30 days after the calls have been made.

This will give Icstis time to uncover rogue operators and get the payments withheld where necessary.

It hopes the measure will stop rogue operators profiting from running scams.

Protection

The move is aimed at any company abusing Icstis' rules - such as rogue-dialler scams which target personal computers, bogus price-claim lines or rogue "fax-back " schemes.

The changes to the code (of practice) will prevent those who seek to rip off consumers from benefiting by stopping the money from reaching them
George Kidd, Icstis

In April, 15 operators of automated phone services offering bogus prizes were fined a total of �1.3m by Icstis.

The regulator wants to crack down on fly-by-night operators who set up premium-rate line services, only to disappear days later before it has had a chance to investigate complaints.

Icstis said that, at present, such operators are able to make a profit because some phone networks are passing on the money earned by the service providers every few days or on a weekly basis.

By putting a 30-day block on the release of the money earnt, Icstis hopes to discourage people from setting up rogue services in the first place.

"We are determined to act swiftly to protect consumers," said Icstis director George Kidd.

"The changes to the code (of practice) will prevent those who seek to rip off consumers from benefiting by stopping the money from reaching them."

Icstis is currently in consultation with telecoms regulator Ofcom over the proposed changes to its code of practice. It hopes the reforms will be made within the next few months.




SEE ALSO:
BT tackles rogue diallers head on
31 May 05 |  Technology
Bogus phone lines fined �1.3m
01 Apr 05 |  Business
Q&A: Rogue-dialling scams
29 Nov 04 |  Technology
Rogue PC rings up �700 phone bill
30 Aug 04 |  Hampshire
Rogue net diallers prompt review
03 Aug 04 |  Technology
BT stamps on rogue net diallers
05 Oct 04 |  Technology


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