Agcom issued a fine of 280 thousand euros to two companies operating in the electronic communication services sector for illicit text message trafficking. This is the outcome of an investigation conducted by Agcom with the support of the Special Goods and Services Unit of the Financial Police. In practice, the two companies based in Italy fraudulently managed 768 million text messages (in the EU and outside the EU) in the three-year period 2020-2022, 203 million of which in Italy. The net profit would be around 4 million euros.
Users gave up their unused text message package for a fee
The investigation began following numerous reports from various telephone operators regarding the online presence of a series of mobile applications downloadable from the Apple and Google stores which allowed access to the “service”. And therefore the users who took part in the promotion, through the functions of the apps, they sold, for small fees, their unused SMS messages compared to the overall quantity contained in the offer packages signed with the respective mobile operators. The same text messages, subsequently re-released onto the world market, were sold to companies operating in the electronic communications sector (such as aggregators, resellers and corporate messaging providers), to be reused in advertising or marketing messaging services of the OTP type (password used and disposable), A2P (from application to person) and similar.
The messaging companies resell the acquired text messages at a higher price
A fraudulent system through which messaging companies, after having induced users of mobile services to contravene the contractual agreements signed with the respective managers and on the basis of which it is prohibited the resale of any service provided, they obtained substantial profits from the subsequent marketing of the illicitly acquired text messages, selling them at a higher price (i.e. 0.01 euro) than what was paid to the users (0.005 euro), in any case competitive with the market offer.
A company from Brianza and one based in Modena that managed the illegal apps were fined
The fine went to a Brianza capital company, operating in the technological and IT consultancy sector, who acted as a “communications operator” without having title, while a second joint-stock company, based in the Modena area, operating in the supply of electronic communications services, managed the illicit applications. These apps sent messages from the terminal of the customer who had given away his unused text messages.
Strong risks for users who gave away their text messages
Therefore, the customer’s number appeared as the sender, with the risk that he could be called or, worse, exploited for fraudulent or otherwise illegal activities (following theft of the online account). The sanctioned subjects, via the platforms managed by them, they “ordered” the private mobile device to forward text messages with commercial content using the users’ numbers. These messages, without the corporate references of the legal entities that originated the content, effectively shifted the responsibility for the contents to the owner of the number, all in violation of the relevant regulatory provisions.
TLC operators can block the SIM of the customer who has provided the service
To counter this phenomenon, which is very widespread and does not end with the blocking of the two sanctioned companies, Agcom has adopted an action plan with targeted controls and blocking of identified applications. The plan requires operators to monitor the effects of the measures adopted and to inform all users of the illicit nature of such practices as well as the risks associated with adhering to such initiatives. Such as blocking the user’s SIM by the manager for abnormal use.
Apple and Google were not involved
Agcom did not contest charges against Apple and Google even though the two giants allowed users to download apps which allowed users to pass on text messages. Also in this case it was a regulatory “hole” given that from now on even the platforms that allow access to unregulated services will be declared responsible.