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Sprint Nextel Settles Case with Florida Data Broker

August 10, 2006

Calling Records • FTC Shuts Down Pretexting Operation • Phone Pretexters Get Off Cheap • Verizon Wireless Changes Customer Data Policy • FCC Strengthens Rules For Phone Privacy • House Tries Once More to Pass Pretexting Bill • Pretexting Bill: Pretense or Reality? • Hewlett-Packard Pays $14.5 Million to Settle Pretexting Suit • HP Scandal Ignites New Pretexting Battle In Congress • AT&T Sues Calling Record Brokers • Sprint Nextel Settles Case with Florida Data Broker • Feds Sue Calling Record Vendors • Illinois Lawsuit Charges Data Brokerages • Florida Judgment to End Data Broker's Business • Florida Investigates Fake Caller IDs • California Sues Data Trace USA for $10 Million • Missouri Sues Datatraceusa.com • Florida Sues Data Broker Over Sale of Phone Records • Texas Sues Companies Selling Telephone Calling Records • Websites Hawking Phone Records Shut Down • FTC Vows to Stop Illicit Sale of Cell Phone Calling Records • FTC Pledges "Vigorous" Pursuit of Cell Phone Record Sales • AT&T Accused of Eavesdropping, Calling Record Sales • Sprint Sues Cell Phone Record Brokers • Missouri Shuts Down Locatecell.com • Texas Probes Cell Phone Calling Record Sales, Missouri Files Suit • Illinois Sues Company Selling Cell Phone Calling Records • Outcry Over Sale of Cell Phone Calling Records

Sprint Nextel said it will get $1 million as part of a settlement with Florida- based data broker 1st Source Information Specialists.

"Our customers are well-served by this result. We are the first carrier to reach a judgment of this magnitude against a data broker," said Heidi Salow, senior counsel, Sprint Nextel Office of Privacy. "It sends a strong message that Sprint Nextel does not tolerate the deceptive practices employed by these bad actors."

Sprint Nextel sued 1st Source, the parent of four online data brokers, in January, claiming that it illegally obtained and sold detailed call records from customers.

In the complaint, Sprint Nextel alleged that a unit of 1st Source used fraudulent tactics, such as posing as customers seeking information about their own accounts, to access cell phone logs and phone numbers.

Sprint Nextel said that although the case against the company is closed, it is continuing to pursue claims against individual defendants believed to be responsible for the actions.

In addition, Sprint Nextel has sent scores of cease & desist letters to other companies that have advertised their ability to obtain call detail records or other private customer information.

The company said it has also been working with Congress to craft legislation that would criminalize or create strong civil penalties to combat this type of fraudulent activity.

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