The auto-subscribing scheme involves two key stakeholders in the mobile phone industry. The first are the mobile aggregators, such as Mobile Messenger. The second are the content providers. Within this closed ecosystem, consumers receive unwanted text messages that ultimately result in bogus charges and billing for unauthorized services. Equally disturbing is that Mobile Messenger works with four different content providers in the scheme. It is important to note that each content provider is essential to the scheme’s success.
Around 2010, Miao, who was the CEO of Tatto (content provider), decides to begin auto-subscribing mobile phone users to Tatto’s premium text messaging services. Miao’s idea is to boost Tatto’s sagging revenues. Miao and others build a computer program that spoofs consumer authorizations for premium text messaging services. In other words, Miao builds a program that generates the text message correspondence that one would ordinarily see if a consumer were genuinely signing up to receive the services.
Pay to Play
The plot thickens in July 2011, when Miao meets Goff. In a conversation, Goff is asked to provide large batches of phone numbers from Mobile Messenger’s databases. Goff agrees to assist Miao and is aware of Miao’s illegal intentions. Nonetheless, Goff provides hundreds of thousands of mobile phone numbers to Miao, in exchange for payment. While sending the stolen phone numbers to Miao, Goff hides his involvement in the scheme. He does this by using email addresses other than his work email address at Mobile Messenger. In the end, Miao and other co-conspirators utilize the phone numbers that Goff provides to auto-subscribe consumers. In total, Miao and Tatto take more than $50 million from consumers via the scheme.
