Evidence of Records and Practices Sought From Websites that Sell Private Cell Phone RecordsFlorida, Texas operators identified, contacted
WASHINGTON - House Energy and Commerce Committee leaders today
demanded answers from operators of Internet sites like "phonebust.com"
and"datafind.org" that offer criminals, stalkers and any other paying
customer the detailed records of a person's private calls made on cellular, wire
line or Internet-based phones.
The requests for information were sent by Energy and Commerce Committee
Chairman Joe Barton, R-Texas; the committee's ranking member, U.S. Rep. John
Dingell, D-Mich.; Oversight and Investigations Subcommittee Chairman Ed
Whitfield, R-Ky.; and the subcommittee's ranking member, U.S. Rep. Bart Stupak,
D-Mich. They mark the first stage of an investigation by the subcommittee, which
also has the power to subpoena records and testimony when it encounters
uncooperative witnesses.
The full committee held a hearing on the matter on Wednesday and Chairman
Barton has pledged to swiftly advance bipartisan legislation to make such
transactions explicitly illegal. Barton also announced at the hearing that
inquiries would be made quickly with the Web site operators. "I can only
guess at the excuses that will be offered by people who profit by engaging in an
obvious fraud, by invading personal privacy and by assisting criminal
behavior," he told the committee Wednesday.
In today's letters, Barton and the three other lawmakers wrote, "It is
very disconcerting that certain online data broker companies are exploiting
consumers' personal records and selling the information to whomever pays for the
records. With the exception of the legitimate activities of law enforcement
authorities, who in any event have legal means for acquiring such information,
we struggle to find any ethical justification for marketing this data."
Letters were sent to Steven Schwartz, director of First Source Information
Specialists, Inc., of Tamarac, Fla., which manages the datafind.org,
locatecell.com, celltolls.com, and peoplesearchamerica.com sites; and Patrick
Baird, director of PDJ Services of Granbury, Texas, which manages phonebust.com.
The deadline for responding is Feb. 17.
The committee seeks the following information:
- Detailed company records, including annual gross and net revenue, the
identities of top customers, a description of services provided and a list
of all business/Web sites with which they are affiliated;
- All methods used by the companies to acquire the information they sell
over the Internet, including whether or not employees pose as telephone
company customers in order to seek account information for buyers (a
practice known as "pretexting");
- The legal basis, if any, that exists for their business;
- All records related to any inquiries by law enforcement or regulatory
officials; and
- An explanation of whether any effort is made to obtain consent from
consumers before selling their account data or to notify them after their
records have been procured or sold.
The full letters to Schwartz and Baird are attached and also are available at
http://archives.energycommerce.house.gov/108/letters/letters.htm.
The primary text of the letters follows:
Mr. Steven Schwartz
Director
First Source Information Specialists, Inc.
7361 Granville Drive
Tamarac, FL 33321
Dear Mr. Schwartz:
We write to request information relating to the business activities of
First Source Information Specialists, Inc. (First Source). It is our
understanding that First Source owns and operates several "data
broker" Web sites, including datafind.org, locatecell.com, celltolls.com,
and peoplesearchamerica.com. According to numerous press reports, many data
broker Web sites acquire and sell consumers' personal cell phone records and
other personal data, without the knowledge or consent of the owners of those
cell phone numbers. Even cell phone roaming records are being sold, giving
purchasers not only the numbers called, and their dates and times, but also the
city and state from which those mobile calls were made.
In light of these disturbing press reports, the Committee on Energy and
Commerce, pursuant to its jurisdiction over telecommunications, the Internet,
consumer protection, and interstate commerce, has commenced an investigation of
these activities to determine exactly how this data is being acquired and sold.
According to your Internet Web sites, and the Web sites of other companies
that sell such information, various components of an individual's personal
profile and activities, including cell phone records, are for sale. For example,
for a relatively modest fee, a purchaser can get access to: itemized incoming
and outgoing call logs for cell phone numbers, landline numbers, or
voice-over-Internet-protocol (VOIP) numbers; unpublished phone numbers;
addresses; and other personal data - without any notice to and consent by the
owners of those numbers.
In essence, within literally a matter of hours, someone who purchases such
information from a data broker Web site can gain unauthorized access to an
individual's daily calls and contacts, home and billing addresses, and other
valuable confidential information. It is very disconcerting that certain online
data broker companies are exploiting consumers' personal records and selling the
information to whomever pays for the records. With the exception of the
legitimate activities of law enforcement authorities, who in any event have
legal means for acquiring such information, we struggle to find any ethical
justification for marketing this data.
Thus, in an effort to learn more about First Source's business and
activities related to the sale of cell phone records and other personal data, we
are writing to you today to seek additional information to assist with this
review. We request that, pursuant to Rules X and XI of the U.S. House of
Representatives, you provide the following records and information detailed
below on or before Friday, February 17, 2006:
- Describe the services that are provided by First Source.
- List and describe all businesses (including Internet Web sites) owned
by, associated with, or otherwise related to, First Source that sell
consumer cell phone records and other personal data. Along with the
description of each such business, provide: 1) a description of the services
offered by the business; 2) the date the business was founded or purchased,
and if purchased, from whom; 3) a list of all individuals who have an
ownership interest in the business; 4) a list of the names and contact
information for all corporate officers and executives, including telephone
numbers and email addresses; 5) a list of the names of all individuals
employed or otherwise compensated for his services by the business; 6) the
physical location and address of the business' headquarters and all other
places of business; and, 7) the annual gross and net revenue generated by
the business for each calendar year since its inception.
- List and describe in detail all methods by which First Source (and any
of its related businesses) acquires the personal cell phone records and
other data associated with a given cell phone number.
- Do the employees of First Source (or any of its related businesses)
pose as customers seeking information about their own accounts ("pretexting")
to obtain the data being purchased by a First Source customer? Does First
Source (or any of its related businesses) obtain access to cell phone
company databases through computer hacking, impersonation of phone company
employees or government agents, or other unauthorized and fraudulent means?
- List all individuals or businesses that provide First Source (or its
related businesses) personal cell phone records and other data associated
with a given cell phone number. For each individual or business, describe
the nature of the relationship with First Source (or its related
businesses), the compensation arrangement with First Source, and the amount
or type of compensation provided by First Source.
- For First Source and each of its related data broker businesses or Web
sites, list the names of all employees, agents, consultants, and other
individuals who work for or provide services to the company or Web site.
- Has First Source conducted, through an examination by either in-house
or outside counsel, an analysis of the legal implications and risks of
acquiring and selling the personal cell phone records and other data
associated with a given cell phone number? If so, provide a copy of all such
legal opinions provided to, or produced for, First Source or its related
businesses.
- By calendar year since 2000, list the names of the top 20 customers, by
revenue, for each of First Source's data broker Web sites. With each
customer listed, and for each calendar year, provide the total dollar amount
paid by the customer to the data broker.
- All records related to the methods by which First Source and its
related data broker Web sites procure and sell telephone records, including
but not limited to all contracts regarding such procurements.
- All records related to any inquiries by law enforcement or regulatory
officials regarding the procurement and sale of telephone records.
- All company policy guidelines, employee manuals, or other instructions
regarding the procurement and sale of telephone records, and all records
related thereto.
- Do First Source and its related data broker Web sites obtain the
consent of the owner of a phone number prior to procuring and selling
records related to that phone number? Do First Source and its related data
broker Web sites ever notify the owner of a phone number that his records
have been procured and sold? If yes, describe when and why.
Additionally, Committee investigators will be contacting you within the
next week to arrange interviews with you and other company officers and
employees.
Sincerely,
Joe Barton
Chairman
Committee on Energy and Commerce
John Dingell
Ranking Member
Committee on Energy and Commerce
Ed Whitfield
Chairman
Subcommittee on Oversight and Investigations
Bart Stupak
Ranking Member
Subcommittee on Oversight and Investigations
Mr. Patrick L. Baird
Director
PDJ Services
1030 East Highway 377 #110-360
Granbury, TX 76048
Dear Mr. Baird:
We write to request information relating to the business activities of PDJ
Services. It is our understanding that PDJ Services owns and operates a
"data broker" Web site named phonebust.com. According to numerous
press reports, many data broker Web sites acquire and sell consumers' personal
cell phone records and other personal data, without the knowledge or consent of
the owners of those cell phone numbers. Even cell phone roaming records are
being sold, giving purchasers not only the numbers called, and their dates and
times, but also the city and state from which those mobile calls were made.
In light of these disturbing press reports, the Committee on Energy and
Commerce, pursuant to its jurisdiction over telecommunications, the Internet,
consumer protection, and interstate commerce, has commenced an investigation of
these activities to determine exactly how this data is being acquired and sold.
According to your Internet Web site, and the Web sites of other companies
that sell such information, various components of an individual's personal
profile and activities, including cell phone records, are for sale. For example,
for a relatively modest fee, a purchaser can get access to: itemized incoming
and outgoing call logs for cell phone numbers, landline numbers, or
voice-over-Internet-protocol (VOIP) numbers; unpublished phone numbers;
addresses; and other personal data - without any notice to and consent by the
owners of those numbers.
In essence, within literally a matter of hours, someone who purchases such
information from a data broker Web site can gain unauthorized access to an
individual's daily calls and contacts, home and billing addresses, and other
valuable confidential information. It is very disconcerting that certain online
data broker companies are exploiting consumers' personal records and selling the
information to whomever pays for the records. With the exception of the
legitimate activities of law enforcement authorities, who in any event have
legal means for acquiring such information, we struggle to find any ethical
justification for marketing this data.
Thus, in an effort to learn more about PDJ Services' business and
activities related to the sale of cell phone records and other personal data, we
are writing to you today to seek additional information to assist with this
review. We request that, pursuant to Rules X and XI of the U.S. House of
Representatives, you provide the following records and information detailed
below on or before Friday, February 17, 2006:
- Describe the services that are provided by PDJ Services.
- List and describe all businesses (including Internet Web sites) owned
by, associated with, or otherwise related to, PDJ Services that sell
consumer cell phone records and other personal data. Along with the
description of each such business, provide: 1) a description of the services
offered by the business; 2) the date the business was founded or purchased,
and if purchased, from whom; 3) a list of all individuals who have an
ownership interest in the business; 4) a list of the names and contact
information for all corporate officers and executives, including telephone
numbers and email addresses; 5) a list of the names of all individuals
employed or otherwise compensated for his services by the business; 6) the
physical location and address of the business' headquarters and all other
places of business; and, 7) the annual gross and net revenue generated by
the business for each calendar year since its inception.
- List and describe in detail all methods by which PDJ Services (and any
of its related businesses) acquires the personal cell phone records and
other data associated with a given cell phone number.
- Do the employees of PDJ Services (or any of its related businesses)
pose as customers seeking information about their own accounts ("pretexting")
to obtain the data being purchased by a PDJ Services customer? Does PDJ
Services (or any of its related businesses) obtain access to cell phone
company databases through computer hacking, impersonation of phone company
employees or government agents, or other unauthorized and fraudulent means?
- List all individuals or businesses that provide PDJ Services (or its
related businesses) personal cell phone records and other data associated
with a given cell phone number. For each individual or business, describe
the nature of the relationship with PDJ Services (or its related
businesses), the compensation arrangement with PDJ Services, and the amount
or type of compensation provided by PDJ Services.
- For PDJ Services and each of its related data broker businesses or Web
sites, list the names of all employees, agents, consultants, and other
individuals who work for or provide services to the company or Web site.
- Has PDJ Services conducted, through an examination by either in-house
or outside counsel, an analysis of the legal implications and risks of
acquiring and selling the personal cell phone records and other data
associated with a given cell phone number? If so, provide a copy of all such
legal opinions provided to, or produced for, PDJ Services or its related
businesses.
- By calendar year since 2000, list the names of the top 20 customers, by
revenue, for each of PDJ Services' data broker Web sites. With each customer
listed, and for each calendar year, provide the total dollar amount paid by
the customer to the data broker.
- All records related to the methods by which PDJ Services and its
related data broker Web sites procure and sell telephone records, including
but not limited to all contracts regarding such procurements.
- All records related to any inquiries by law enforcement or regulatory
officials regarding the procurement and sale of telephone records.
- All company policy guidelines, employee manuals, or other instructions
regarding the procurement and sale of telephone records, and all records
related thereto.
- Do PDJ Services and its related data broker Web sites obtain the
consent of the owner of a phone number prior to procuring and selling
records related to that phone number? Do PDJ Services and its related data
broker Web sites ever notify the owner of a phone number that his records
have been procured and sold? If yes, describe when and why.
Additionally, Committee investigators will be contacting you within the
next week to arrange interviews with you and other company officers and
employees.
Sincerely,
Joe Barton
Chairman
Committee on Energy and Commerce
John Dingell
Ranking Member
Committee on Energy and Commerce
Ed Whitfield
Chairman
Subcommittee on Oversight and Investigations
Bart Stupak
Ranking Member
Subcommittee on Oversight and Investigations
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