Typically used as a billing alternative, dialers are downloaded off the Internet to allow access to porn sites and other sites that offer pay-per-view billing options for dial-up users.
But in the case of a recent rash of dialer scams and other Internet crimes, the current trend is to install dialer software programs on computers without a user's consent, which results in unexpectedly large phone bills when dial-up services are switched to premium rate services.
Dialer scams, also known as modem hijacking, dialer hijacking, or Internet dumping, occur when a website purposely disconnects a user from a local Internet service provider and reconnects through another one, usually using an international phone number or one that is expensive to use.
According to watchdog groups, the website will usually ask permission prior to the download, but the request may be written in tiny print among lots of other information about free downloads or software.
Typically dialers are loaded onto systems via what is known as an ActiveX script, and many dialer fraud watchdog groups recommend users make sure that their browser is set to reject ActiveX code. They also recommend that users turn off their modems and computers when not in use.
According to the Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS), which regulates premium rate numbers in the United Kingdom, Internet-related scams have risen by 70 percent in the past year, after only increasing by 43 percent in 2002.
London-based ICSTIS is the industry-funded regulatory body for all premium rate charged telecommunications services.
In response to Britain's recent flood of dialer complaints, ICSTIS is partnering with the National Hi-Tech Crime Unit to investigate the issue and produce a solution.
"If it's only a few cases, then we can put it down to the husband or kids not admitting to surfing porn," a representative for ICSTIS said. "But if 300 customers are saying the same thing about one company, then we can't ignore it. We can't work out what the problem is, so we have recently started talking to the Hi-Tech Crime Unit, so they can do a criminal investigation."
While the investigation is still in the early stages, the National Hi-Tech Crime Unit is looking into the possibility of Trojan viruses playing a role in illegally downloaded dialers.
According to the crime unit, a Trojan virus can disconnect a dial-up Internet connection, and then reconnect to a premium rate line, changing the computer's settings so that the premium rate dialer is the default setting.
Adding to its current computer woes, the British computer industry has been hit hard lately with a wave of phishing scams in which legitimate companies are being misrepresented online to commit crimes of identity theft.
