Watchdog cracks down on premium rate diallers

ICSTIS to license services following user backlash

Dinah Greek

Companies wanting to run premium rate services using internet dialler software will now have to obtain permission to operate from the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS).

The move to license services follows a surge of complaints by consumers whose internet connections have been diverted to premium rate numbers without their knowledge.

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The new arrangements will also mean that telephone networks cannot give out premium rate numbers to companies to run such services until they see written confirmation from ICSTIS that permission has been granted.

BT has already announced its intention to stamp out rogue diallers by blocking traffic to the premium rate numbers believed to be associated with them.

ICSTIS director George Kidd said in a statement: "We will only grant permission to those companies that satisfy our stringent requirements.

"These are currently being finalised but will cover key areas such as clear terms and conditions, user consent, information about how to delete diallers, and responsibility for customer refunds and ICSTIS fines.

"Our new licensing arrangements are the first step in putting a stop to the type of fraudulent activity we have seen of late."

Network operators that do not abide by the new licensing rules will be reported to Ofcom, warned Kidd.

"Phone companies have the systems to identify suspicious call patterns and can take action before their customers unknowingly run up huge bills," he said.

"Those networks that give out premium rate numbers in the first place have a duty to carry out thorough checks on those they give them to, and to look at the speed at which they pass money on to them."

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Further reading

BT rogue dialler crackdown

BT pulls the plug on 1,000 rogue dialling lines

Telco works with regulator to block internet traffic to suspect numbers

Alex Shipp

Bugwatch: Trojan diallers on the loose

Prevention is better than cure when it comes to premium-rate dial-up scams

Ofcom to review premium-rate rip offs

Watchdog could order crackdown on rogue diallers and mobile scams

BT moves to block rogue diallers

But no joy for 19,000 customers disputing dialler-affected phone bills

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