The practice is known as "Internet Dumping", and typically involves tricking your computer to call a costly 190 number instead of your usual Internet connection. A program called an auto-dialler is downloaded onto a users computer to make the switch, and often the only warning given is a pop-up box asking if the user wants to continue.
These numbers are typically charged at rates of AU$5.50 per minute, rather than 10c per minute, the highest you're likely to pay for dial-up Internet access through an ISP. It's not unusual for unwitting users to spend hours connected to the Internet, on the higher rate, as they are unaware they have been connected at the higher rate.
The "auto-dialler" programs often infect unwary computer users from porn sites so victims are often too embarrassed to chase the matter further. And even if the 190 number is traced back to a specific company, many have been known to refuse to disclose the service being charged for.
Teenagers are particularly at risk, with a high number of reported cases of internet dumping involving teenagers using the computer at home, unaware of the charges they are incurring.
One 14 year-old we interviewed, thought the pop-up was just a warning that by clicking 'yes', he was confirming he was over 18. "I never knew that by pressing yes it was going to cost so much," he said. "Maybe I didn't read the message properly, but I don't remember it saying anything about money." His mother had to foot the Telstra bill of more than AU$250, a relatively small amount compared to some cases.
Another victim, we spoke with has charges in the thousands of dollars, gained due to his limited understanding of english. When presented with a "yes or no" prompt he clicked "yes", without having any real idea what he was entering into.
"There's no doubt that dumping complaints are on the increase in a major way," said John Pinnock, the Telecommunications Industry Ombudsman.
In the first quarter of this year the Ombudsman received 274 complaints about Internet Dumping, which increased by 34 percent the following quarter to 368. In the July-September quarter the number of complaints jumped a further 63.6 percent to more than 600.
If the trend continues, the first half of the 2002-03 financial year will see as many complaints as occured in the previous 12 months.
According to Pinnock, there is an absence of real consumer protection in this area. "The notice that people are put on may not be very good, and even if it is there are still very, very high unexpected charges," he said.
Most of the complaints concern amounts in the order of several hundred dollars, but some are much higher. "We've got one in the office that is AU$10,000, that is the largest I know of," said Pinnock. The consumer group coalition, Consumer Telecommunications Network, claims to have received reports of cases involving up to AU$60,000.
Exacerbating the problems consumers face when attempting to challenge the charge, no single agency exists to regulate 190 Internet diallers, so it is difficult to know what to do when they find themselves saddled with an enormous bill.
"There is an argument about just where the TIO jurisdiction begins and ends with some types of services, because another body works in the area," said Pinnock. The other body is the Telecommunications Information Services Standards Council, an industry-funded organisation that regulates the premium-number industry, including 190 numbers.
The council consists of three community members, two 190-service providers, a member from the telephone company and an independent chairman. The Council overseas the voluntary 190 code of practice, which outlines the expected behaviour of companies that provide premium number services.
The Code of Practices mentions Internet Dialler Services, and sets out various rules service providers should follow. The rules include automatically ending the connection after five minutes of inactivity and displaying the message "THIS SERVICE IS NOT FREE" in upper case bold and prominent font across the top of the introductory box.
In practice, not many auto-diallers follow the regulations.
If people continue to run programs of questionable origin on their PCs then they deserve all they get. If they're unsure what they're doing, then why the hell don't they ask?
It's absolutely no use relying on warnings and instructions which are "supposed" to alert the user, because, let's face it, how many of these perpetrators follow the rules?
If you don't know - ask, it's that simple. I have very few customers ask me about such problems, I presume the rest are still paying off their phone bill.