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SMS Scam ( 20 ): Small fines, so the scam goes on

September 14, the Communications and Multimedia Commission (MCMC) said it has investigated cases against five mobile phone content providers and issued compounds totalling RM550,000 as at August 31 this year.

MCMC said the compounds were higher compared with last year where five cases were also investigated against the content providers but the compounds amounted to just RM187,000.

"The compounds were for unsolicited messages, unauthorised charges and content providers' failure to terminate the services as requested by the users," it said.

MCMC said based on the investigations, a total of 712,676 customers were affected and the total charges were RM377,411.60, adding that all the money has been refunded to the users.

It said the total number of complaints received on unsolicited short messaging services (SMS) at MCMC and at the commission's Consumer Forum of Malaysia as of Aug 2007 was 176.

So, who has been fined and by how much? Let's refer to MCMC's official record and see if things tally:

MCMC-Fine_070831.jpg

Noticeably, two repeat offenders -- one faulted four times and the other, three -- were each fined a compound of RM10,000.

A gentle slap on the wrist?

Hence monkey see monkey do. Screenshots was alerted that the peanut punishment by MCMC is worth all the while for the ECPs to scam mobile users over and over again. The latest scam is still happening currently.

Here's the proof that shows Matrix Internet & Wireless Sdn Bhd, another Maxis External Content Provider, has used shortcode 32321 (via 03-7660-5291) to scam post-paid user Mr Lim CH, who stays in my USJ neighbourhood.

SMS-SCam_LimCH_Aug-Sep07.jpg
SOURCE: Maxis itemised bill dated September 07, 2007

This is what Lim told me on September 12:

I have read about the SMS scam in your blog and never thought that it would happen to me.

I checked my latest on line Matrix bill and discovered that my daughter's ph (a supplementary line of mine) has got these whole lot of content provider charges, 24 items @ 0.30 each = RM 7.20.

You can see the pattern of the calls: done almost daily and between 8.am to 9.00am most of the time.

I am quite certain that my daughter did not subscribe to these thing as she wakes up after 10.00am everyday. She attends afternoon class in SMK8 USJ.

The relevant bill is as per attachement

Called up Maxix and was informed that the CP is Matrix Internet & Wireless Sdn Bhd (based n Phileo Damansara) with office tel no given as 03-76605291

Thanks

Industry insiders told Screenshots that Matrix Internet & Wireless Sdn Bhd is also the SMS service provider for The Star SMS News Alert and Magnum Corp.

All these happened at the time after Maxis had claimed success in putting the Maxis Preventive Gateway (MPG) in place, and its external content providers made to endorse the system under duress.

For context, read this September 14 blog entry.

Meanwhile, Mr MCMC is calling for a meeting with the celcos and their content providers today, the 5th day of Ramadan.

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