Feeds

Watchdog relieves iPhone 5 scammers of £10k

Dodgy adverts earns fine from premium-rate line regulator

Top three mobile application threats

A British company who offered "iPhone 5s" to punters has been slapped with a £10,000 fine by regulator PhonePayPlus, which ruled that the adverts for the non-existent phone were misleading.

According to the judgment published today, the Bumbalee service run by Mobile Minded BV used "prizes" such as the iPhone 5 to lure punters into signing up to a premium subscription service that charged them £2 every time they received a message.

In the adverts investigated by PhonePayPlus, the regulator for the UK's premium phone line industry, Mobile Minded offered £150 of "free" Morrisons vouchers in adverts put on Facebook in September/October 2011 – which turned out to be as illusory as the iPhone 5.

Morrisons disclaimed any knowledge of a vouchers deal with Bumbalee and the monitors found that it was impossible to claim the vouchers. Punters clicking on the offer were asked to fill in a survey, before being taken to the subscription site and offered the opportunity to win an iPhone 5.

Entrants paid to do surveys or quizzes and were charged £2 a message with five messages sent a week.

PhonePayPlus estimated that the scammers made between £50,000 and £100,000 out of the service.

As well as the £10,000 fine, the company have two weeks to make all their advertising compliant and have been commanded to refund all complainants for the full amount of money spent by them on the service.

Mobile Minded BV have not responded to our request for comment. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Obama allows NSA to exploit 0-days: report
If the spooks say they need it, they get it
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Heartbleed exploit, inoculation, both released
File under 'this is going to hurt you more than it hurts me'
Canadian taxman says hundreds pierced by Heartbleed SSL skewer
900 social insurance numbers nicked, says revenue watchman
German space centre endures cyber attack
Chinese code retrieved but NSA hack not ruled out
Burnt out on patches this month? Oracle's got 104 MORE fixes for you
Mass patch for issues across its software catalog
Reddit users discover iOS malware threat
'Unflod Baby Panda' looks to snatch Apple IDs
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.