We’ve ranted. We’ve raved. We’ve endlessly editorialized against the rampant fraud, waste and abuse that threatens the existence of the Lifeline Assistance free government cell phone program. Now the highly-respected Consumer Reports confirms that we’re not just a voice in the wilderness.
According to ConsumerReports.org, “the 30-year-old Lifeline program that will distribute the funds (for the recently-approved cheap, government-subsidized internet program as well as for free government cell phones program) is a magnet for abuse.”
The Federal Communications Commission issued a series of reforms back in 2012, but the program continues to provide free government cell phones for an unknown — but assumedly huge — number of ineligible customers.
Some of the statistics are frightening. For example, a 2013 Wall Street Journal report said that the FCC had investigated 6 million customers of just five free government cell phone companies. It found that 41% of the subscribers couldn’t prove that they were eligible for the program. That’s 41% of those who responded to the FCC’s queries, and since its reasonable to assume the percentage would be even higher among those who didn’t see fit to respond.
Want to know how to assure fraud, waste and abuse? Do as the FCC used to do: Make the application process so porous that “subscribers could verify their low-income status by simply signing their names to a form.”
Want to know how to reduce fraud, waste and abuse? Toughen the rules as the FCC has now done: “Now they’re required to provide proof that they’re eligible for food stamps, housing assistance, or Medicaid.”
At least that’s how it was supposed to work. Unfortunately, Consumer Reports also says that it’s “…easy it is to circumvent restrictions.”
Specifically, “Lifeline plans were registered with forged signatures to people who had not requested them. In others, they were assigned to vacant homes. Last November, a TV producer from a Denver news team received a free cell phone from a street-side vendor with ease. When he walked up to the tent and said he didn’t have a food stamp card, the vendor simply used one belonging to another citizen.”
We’ve often editorialized against these sleazy sidewalk salesmen working out of flimsy portable booths that pop up in the a.m. and disappear in the p.m. Many of these fly-by-night snake oil salesmen say the free government cell phone companies have encouraged them to process as many applications as possible without regard to obvious problems.
“In Denver,” Consumer Reports notes, “they routinely accepted fake food stamp cards, including one with ‘training card’ on it and another clearly printed from an Internet file. Because they receive $3 for each new subscriber they enroll, street agents are eager to approve everyone.”
The Federal Communications Commission is finally striking back. It has fined unscrupulous cell phone companies more than $96 million, but it appears to be a case of too little too late.
Consumer Reports notes the stark difference between the amount the FCC fines offending companies and the money it pays them.
“That may sound like stern punishment, but it’s outweighed by the profits that the companies pull in,” Consumer Reports said. “For instance, TerraCom—one of the companies targeted in the Oklahoma investigation—received $52.3 million from the Lifeline program in 2012. Less than a year later, it agreed to pay $1 million along with an affiliate to resolve FCC claims of improper reimbursements.
We join Consumer Reports in strongly urging the FCC to clamp down even harder on potential waste, fraud and abuse. The Lifeline Assistance free government cell phone program may have its share of problems, but it also solves a long list of problems for America’s most economically-disadvantaged citizens.
Make it stronger. Make it foolproof. Make it work for millions of Americans who need it.
Michael A. says
So who’s really living the American dream here in the vulnerable U S of A??? Of course the very rich and elite will always be entitled to everything. Who is really better off and smarter between the non working, poor, underemployed, undocumented workers and specifically undocumented non workers??? The entire middle class of Americans, including upper middle class ??? Youve got tobe kidding, right? If you look at what we pay for our phones, internet, utilities, mortgages , rents, food, and TAXES, and look at the freebies package for half the nation, whos really amarter? Is their a need for thede programs? Absolutely. Is there more abuse than there is need? Absolutely. Theres an entire class of Americans and non. americans, just like upper, middle class. It’s the class that gets all these gov. programs by means of other than need. Its the same gov. administration that happens to be the most dishonest regime this nation has ever seen. Its also hard to utilize your right to express this fact or any factual statement without beibg accused of aracist or bigot. This administration and its broader beliefs and strategies are nothing short of unlawful, criminal, illegal, unethical, and all of the prior. This administration had a huge opportunity to do great things. Its not always the programs, or the freebies that attract abuse. It started with it un fortunately. When this country can run on a cashless currency? Maybe then the fraud can be cut down but it will never go away as long as corrupt politicians represent the non working class citizens. Whats my take on corrupt gov? All choices in life have co sequences . With that said, make the right choices. If these offenders and scammers are constantly abusing the system and its programs, whos to blame? If they had a penalty to deter abuse, there would be much less abuse, right? No consequences. This society needs a major wake up call. It just might happen sooner than you think. Example: You can send a thousand dollars across the border for like $8??? How about taxing the actual impact of that thousand leaving our nations economy forever??? How about a 20% impact tax?? Nakes too much sense right. Same with free gov cell phones. The lobbying efforts of the crooks in these businesses and corruption between the gov and them will not allow the enforcement to occur. Look at illegal immigration? Non enforcement. No consequences. No, im not a racist. Open your eyes and see the real problem.
BostonHolly says
You’re recommendation, Consumer Reports, is always the same, general , generic blather , the cover your basis “t’s not our fault” non-recommendation “kinda sorta infored recommendations as if youwere recommending lawn mowers or dishwashers: It’s two years out of date, too broad to be of use, and provides no particular nor solid, concrete solutions as a way to resolve a problem. Just fix it, Joe Government People. Oh, ok. so what you are suggesting is simple: Ask (not demand) a chronically inept governmental system, which by the way *is* the problem, it’s not part of the problem it is *the* problem, (Oh shut up, it’s not Obama’s fault that the government of the people by the people for the people is inherently corrupt , has been and always will be fraught with fraud ) to fix itself . “Dearest Politicians & Regulatory Agencies, Please check yourselves before you wreck yourselves, K ? Just a sugg.” There is not a single government nor social service agency (remember the horrific Vetrens Administration schancle and take down a few years back- a complete disgrace) that is now fraght with fraud. The commission on Disabilities was the most recent, Food Stamps was taken down last year. Not an agency exists which has not become a filthly , infested roach motel. And before you get your knickers further in a twist, before anyone blasts me for being a right wiing evangelical Christian Republican concertive, – you are dead wrong. I am a 61 y/o former Love Child from the 60’s (peace , man) and a die hard Bleeding Heart Liberal, the only one in our long line of DAR’s an SAR’s family. But I’m mad as hell and I’m not going to take it anymore (where’s that toaster ? ). I am so fed up with the past 50 years of our government I puke on a daily basis (metaphorically) . I have to stand on my head and spit wooden nickels to prove when I need some help from the government. Why ? Because I’m not only honest, but I’m also 100% in the wrong demographic. Gee, which would that be ? I was born here, I speak my native language fluently, am college educated, worked my whole life away, was an entrepreneur, am single & forgot to have kids. Yet, by doing everything by the book I’m learning a tough lesson – honesty does not pay. It hurts you in the end. A Russian friend put it this way recently “In This country you must be either very very rich or very very poor to survive. No one else can survive here”. I was floored by her simple statement- because she hit the nail on the head.
Chester C. Graham says
I found just the opposite.
I lost my LifeLine cellphone and it took me 3 months to get a replacement.
In response to my application they tried to sell me several cellphones.
When they finally supplied me with a cellphone it did not come with a manual and they didn’t send me the code to access my voicemail.
Repeated e-mails and letters finally got me my code to access my voicemail, but I didn’t receive a manula for the cellphone until I wrote my state attorney general.
Why get so upset about supposed consumer fraud by poor people when the upper classes walk away with everything!!!!!!!!
BostonHolly says
The poor walk away with just as much. Only those of us with a little bit more than the poor and a hell of alot less than rich are being completely wiped out. We’ve got nothing left and we can’t get help because , in my case, we are $300 over the income limit for government assistance. the difference between being considered at poverty level or not is $300. and that $300 will cost $25000 or more – just for medicine to survive. The government will pay for colon cancer but it won’t help to prevent it. The government will pay for 3 squares & a roof for serial killers in prisons, and health insurance and cell phones and a roof and meals plus booze & Twinkies for an entire family for the next 20 years, but has taken away salads and bread and milk for a 61 year old, disabled female due to a 1% SSDI cost of living increase which put me $300 over the annual income eligibility to be considered poor. That $24 per month cost me food stamps, fuel assistance, cell phone and health insurance assistance including help with medications. The SSDI check, which I paid into as a working person for 40 years , will cover most of my mortgage. That’s it. I am now going to have to find a way to live on -$524 a month. All those years of paying into the system will now go to supporting strangers who I cannot even converse with because I don’t speak their language. It will also go to supporting corrupt government agencies and fraudulent agencies that let children die in foster care. My money will be supporting liars, cheaters and thieves and on *both* sides of the fence. The bottom line ? Crime most certainly *does* pay, Honesty does not. The cell phone abuse is the least of our worries today. But it is representative of a deep, deep sickness in our country which is barely scratching the surface of how bad it really is. It’s an abyss of corruption that is not touchable.
visitor says
Well said.
Jd says
You do realize you can usually get a manual to almost EVERYTHING on line these days? Some items that is the only place you can see a manual. I would say that makes it very cost effective too, since all you have to do is download it and you have it forever on your computer and when you need it you don’t have to remember that place you put it so you would remember where you put it.
Just saying.
Steve says
What’s with our Government letting not only Lifeline Companies but, also other Companies do fraudulent business practice ripping off consumers one way or another or the Government itself and then not going after the profits of these companies, CEO’s bonuses, property and assets and have a Blacklist of all offenders (somewhat like that of sex offenders having to register) and keep tabs on them. It’s a shame.
Remember the backpack bombings – what did we learn from that , Not much that I saw when the Pope visited the US every News Shot I seen, had People in Crowds wearing BACKPACKS.
Not only do I say Wake Up AMERICA – Come On and STAND UP for a CHANGE – if you don’t nothings ever going to change !
The FCC needs to take the registering and verification away from the Lifeline providers and put that control upon the States that Lifeline services. Just like you go and register for food stamps, Medicate and
other like programs.
Stop the Fox guarding the Hen House practices.
Mubarak says
Tell the whole story. This is an income based program. We sign up a lot of retired seniors, disabled people, vets and working poor. Not just welfare recipients!! Phone bills are to high for many. With the new applications and NLAD, fraud has been reduced greatly. I’m a disabled person who can not afford medical treatment without Medicaid. If the Government stopped helping I’d die. Same with the Lifeline program, it’s the only choice for most. Unlike many other entitlements, you must have a Social Security # to sign up. At least the program is helping Americans , unlike ACA , HUD , Medicaid etc. Lastly, this is a Legal program, a program that helps the needy. How could you call an Enrollment Specialist sleazy. Is it because we work in low income neighborhoods. Did you call the DSS workers sleazy when they were paying for Midwesterners home phones in the 1980’s and 90’s????
patricemoynihan says
Safelink/Tracphone require written proof for qualifying documents in order to get a free cell phone and their re-qualifying process is very thorough. I re-qualified with Tracphone and was very pleased with their phone process, I only hope that the free internet service will become a part of their service.
I really appreciate your newsletter and updates. Thank you for remaining vigilante.
patricemoynihan says
Your blog for cheapinternet service link does not display a webpage. How can I find out about free internet service for low income? Will Safelink/tracphone offer this service to Hawaii?
Thank you for your newsletter.
FreeGovernmentCellPhones.net says
Which link on the page is that please?
Thian Piang says
I need free cell phone
Chester C. Graham says
I have found just the opposite.
When I lost my Lifeline Cellphone and applied for a replacement the process was so difficult it took me 3 months to get a working Lifeline Cellphone.
My provider first tried to sell me cellphone service. When I declined they told me my application was so old it had to be approved at a higher level.
I had to repeatedly send them documents proving I was eligible.
When the Lifeline cellphone came it did not have a manual.
I only received a manual when I complained to the Office of the Minnesota Attorney General.
I am now in the process of making formal complaints to the relevant agencies.