Verizon Wireless files suit to squash premium SMS fraud

Verizon Wireless (NYSE:VZ) has filed suit to halt an alleged scheme to defraud subscribers via premium SMS campaigns. The lawsuit, filed Monday with the U.S. District Court of Arizona, charges that defendants Jason Hope and Wayne P. DeStefano--cited as owners of companies including Cylon, Jawa and EyeLevel Holdings--defrauded Verizon Wireless by misappropriating approved short codes for unapproved "shadow" campaigns that failed to comply with the operator's consumer protection and disclosure policies. The sites promised video game tips, recipes and related information without properly disclosing how much the mobile data services would cost, the suit adds.

Verizon Wireless claims the defendants blocked certain IP addresses from accessing websites connected to the shadow campaigns or funneled visitors to shell websites, effectively preventing the carrier and its auditors from identifying the sites during the course of its premium SMS monitoring efforts. Verizon Wireless is petitioning for an injunction to immediately halt Hope and DeStefano's efforts; the carrier also seeks monetary relief. Verizon notes that the Texas Attorney General filed a similar suit against the same defendants on Monday, adding that it assisted and supported Lone Star State prosecutors in their investigation. 

Subscribers impacted by the premium SMS plot who believe they are in line for a refund can visit www.premiumsmsrefunds.com for details on submitting a claim. The website supplies full names of all premium SMS campaigns and associated short codes Verizon Wireless has connected to Hope and DeStefano--subscribers can visit the MyVerizon online portal to access detailed wireless bills dating back one year.  

For more:
- read this release

Related articles:
Verizon Wireless revamps V Cast Music for Android
Verizon mobile data revenues up 25.5% in Q4 2010
Verizon Wireless expands V Cast Apps to embrace Android
Verizon Wireless launches V Cast Apps storefront