Ten Steps to Cell Phone Security

Pretty shocking stuff! Even more reason to guard your celly!!

Americans love their cell phones -- most of us can't live without them. Yet the Better Business Bureau reports that cell phone providers are the No. 1 cause of complaints among consumers.

This is mostly due to incorrect billing, confusing fees, unexpected charges, and deceptive contracts. These can certainly add up, but I was shocked to learn that the most significant -- even devastating -- monetary damage can occur when your cell phone is lost or stolen.

A $26,000 Cell Phone Bill

San Francisco resident Wendy Nguyen was even more shocked to receive a bill for $26,000 after her cell phone was unknowingly stolen before she left for an overseas vacation. Cingular held her responsible for charges incurred after the phone was taken, up until the time Wendy discovered the theft and called the carrier.

She was able to prove via airline and passport documents that she was out of the country and couldn't possibly have made the unauthorized calls from San Francisco during that time, but Cingular still held Wendy accountable for all charges.

Not only that, they advised Wendy that if she couldn't pay the bill she should consider filing for bankruptcy!

Adding Insult to Injury

Eileen Perrera's phone was stolen while she was on vacation. She filed a police report and contacted Sprint immediately, but then received a bill totaling almost $16,000. Sprint claimed to have never received the call from her reporting the stolen cell phone.

Eileen was able to submit proof from landline phone records that she had indeed called Sprint customer service. As her late fees piled up, the situation remained unresolved for months.

Then there's Pamela Woodson's story. When her cell phone was stolen, she reported it the very next day. However, by that time her account had already incurred over $1,800 in unauthorized charges. Due to the suspicious nature of the fraudulent charges, she was actually interviewed by the FBI -- and cleared of all responsibility. Nevertheless, T-Mobile pressed on, insisting she pay the outstanding charges in addition to late fees and interest.

Can This Be Legal?

If you dig through all the fine print in your cell phone contract, you'll most likely discover a statement that reads something like this: "Should your cell phone be lost or stolen you are responsible for any costs incurred for unauthorized calls made prior to reporting the cell phone missing."

Unlike a credit card, cellular contracts are not required to limit liability for fraudulent charges. But it's also important to realize that the extent of your liability as stated in your contract is your provider's policy -- it's not a law.

The laws that give consumers the right to dispute unauthorized charges vary from state to state. In states where the laws do exist, they're not doing much good because there's no single independent agency set up to review evidence, enforce the laws, and provide a timely resolution.

Why? It all comes down to money. In California, for instance, the significant financial contributions made by the wireless industry to state government gives the telecommunications industry enormous influence over entities like the Public Utilities Commission. In effect, this allows the wireless industry to make up its own rules.

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