Consider this a warning: Big Brother is looking for the people guilty of defrauding the government’s free cell phone program.
The program, Lifeline Assistance, has grown rapidly in recent years. In fact, it has grown so rapidly that some experts say it has outgrown the safeguards intended to protect against fraud.
Tom Schatz, president of Citizens Against Government Waste, told Josh Sweigart of The Dayton Daily News (source link broken), “The … program itself, which provides subsidized cell phones, has been subjected to a lot of waste, fraud and abuse.”
The Federal Communications Commission seems to agree. In a national survey, it recently pegged 269,000 people in 12 states for receiving multiple subsidized phones.
“People were getting multiple cell phones, they were selling them on Craigslist,” Schatz continued, “so clearly people know how to take advantage of a program like this.”
The Lifeline cell phones for the poor program (often wrongly called the Obama Phone) only allows one Lifeline phone per head of household, and that includes any landline phones receiving a Lifeline discount. When applying for a phone, the applicant must confirm under penalty of perjury that they do not already have a Lifeline phone. Accordingly, anyone having two Lifeline phones has committed a crime.
In most states, the companies that offer the phones are also responsible for overseeing the program, leading to charges that the government is letting the foxes guard the henhouse. Considering that these companies are paid as much as $10 per month for each person in the program, some critics say it’s actually to their benefit if customers sign up more than once.
The results of a Government Accountability Office fraud investigation reinforce that point of view. Only 5% of Lifeline providers have been audited so far, but 76% of those audits have already discovered fraud.
For example, the audit of just one company in Florida and Tennessee rooted out so many cases of fraud that it was determined that the company had been overpaid by $1,100,000 in just a two-month period. More than 200,000 duplicate phones have already been cleared from the books in the first seven states where anti-fraud efforts have been implemented. And although those numbers seem awful, they become truly horrifying when extrapolated across the entire nation and the entire Lifeline program.
That’s why the FCC is now thinking of ways to limit the rampant fraud. Some of its very sensible solutions — solutions that shouldn’t impact honest recipients — include requiring a minimal charge from all participants in the program, cutting off service if a telephone goes unused for 60 days, banning consumers guilty of fraud from future participation in the program, and creating a national database of users to make it easier for companies to verify eligibility.
These efforts deserve to be applauded. The Lifeline program does so much good for so many people that it would be a travesty if a few (or more than just a few) greedy individuals ruined it for those honest people who truly depend on the program.
jeffery turner says
I just found out my ex girlfriend used my ebt card to turn a phone on an gave it away. I tried to have it turned off but i dont know the number or company! I really need the phone myself. Pleasw tell me how i could get this info. Thank you#!
Free Government Cell Phones says
This sounds like a definite case of fraud, Jeffery. Since you don’t know the number nor the company nor who has your phone, we would suggest you call the Federal Communications Commission and ask for advice. This is a situation we’ve never run into before. Good luck.
ANN says
so u didnt see the woman on tv who bragged about having 50 obama phones?? omg
Free Government Cell Phones says
Yes, we saw it. That’s why we are for cracking down on fraud.
Nea says
I have a phone that I got but it is so cheap that it is broken already. The back button stopped working so I was having to take the battery out to start over. Last night the power on button stopped working. So now I am phoneless until my replacement gets sent out. Also the customer service is terrible. I called over the weekend to tell them the initial problem and was on the phone for 45 minutes. The things we go through just to get some damn help nowadays amazes me……
Patricia Miller says
i am dissatisfied with my phone, i add minutes they take it from my bank account and i do not get them but i have proof i paid..also i am charged by the minute..indiana has no hotline for questions..they are getting paid but are not doing their part. should have access to real people to answer questions and/or complaints..they dont.
Brad Forte says
not everyone is a theif i lost my job and got sick no work no ssi no home free phone yess fodstamps yes 200 a month so not everyone liess
dog says
I no people with 5 to ten phone they all fraud you cant give these bumbs any thing .They do the same thing to foodstamps they all lie say there spouse dont live with them the kids get 2 meals in school 3 meals at home 5 meals a day they get $800 to 1000 a mo. in stamps this is why there fat they all go to church for food to they get 4 bed room app free rent free light free doctors free teeth some will get 5 ssi checks rent 1500 mo light 300 amo phone 50 ssi cecks 550 ==4==2300 a mo this is what my sister get about $6000 a mo and free doctor dental my sister get $ 72000 a year Quit your job see what poor get you
John says
the people i no with these phone fraud them the same as they do foodstamps the gov. needs to stop these lo life .i say all tax payer quit ther job and let the gov take care of them the gov will pay your housing $800.00 to a $1000 a mo food give you a ssi check .why the hell ar we working Quit the dam job if the gov don’t stop this
DWIGHT PANKO says
I find it impossible to get a phone for a friend that is eligible for a free phone from Safelink.
After doing an application on line for him all I get is a pop up saying cannot confirm address. I even called Safe link and they said they could not confirm address and that I should go to the post office and update his address. I did this around a month or more ago and I tried to apply again, but I get the same message over the internet, cannot confirm address. I bloody know that he has an address, that he is eligible for a phone, and that he doesn’t already have one or is enrolled in any phone service that would make him ineligible. What the hell does a person have to do to get one of these precious phone?
Mike says
Unfortunately, we will always have those individuals who are going to take
advantage of whatever opportunity for fraud that comes along. I personally
would be most thankful for a gift of this magnitude, a chance to communicate with my loved ones, check on job offers, etc. It would truly be a tragedy for all
if this program was shut down because some people are always on the lookout
for any opportunity to take advantage of, and ultimately steal from others
to better themselves. God help them…