Verizon's sky-high ETF: Do the math

Bloggers have speculated that Verizon's fat new $350 fee for breaking its smart phone contracts is intended to thwart phone flipping, a scheme in which you take the two-for-one deal, quit the contract on the second phone, then sell the handset on eBay at a profit, even after you pay the old $175 early termination fee (or "ETF").

Verizon didn't directly answer when we put that theory for the $350 ETF to them. "Our general reasoning is that it reflects the higher cost associated with the phone," said Tom Pica, a Verizon spokesman.

That suggests Verizon is giving customers bigger savings in the form of a bigger subsidy for those devices out of its own pocket, right?

Wrong.

Beware of 'phishy' text messages on your cell phone

This is the text message some spammer/phisher sent to my cell phone today. Has anyone else gotten one of these SMS messages? (Click to enlarge.)
[PHOTO: P. Eng, Consumer Reports]

I almost fell for a rather clever phishing message sent to my cell phone, not my computer's e-mail inbox. A text message from "Unknown" popped up on my cell phone, warning me that my "Card" with Chase had been deactivated. To reactivate it, all I had to do was call the toll-free number listed in the message. (See image at right.)

Because I have several accounts with Chase—and I do take advantage of "Chase Mobile Banking"—I nearly pressed the "Call" button to reactivate my card.

But on closer look, I realized this was a scam. Here's what tipped me off:

• The "Unknown" sender. All the previous official alerts from Chase to my cell phone were clearly identified by a specific ID number clearly linked to "Chase" in my phone's address book.
• The "Card starting with..." text. Most banks use "Your account ending with..." not, "starting with."
• The improper capitalization. "...has been Deactivated."
• The incorrect account number. I don't have any Chase accounts starting with 511182.

Thankfully, I didn’t press the "Call" button on my cell phone. But I did phone Chase's official customer service line (1-800-436-7927) and was quickly connected with the Chase bank's online fraud and security center. The Chase representative told me the bank is aware of these phishing text messages, but the version of the phish they had on record had a different toll-free number. They noted the details of the phishing message I received and said they'd monitor my Chase accounts for any suspicious activity since this appeared to be a "new type of fraudulent e-mail."

U2 concert to stream live on YouTube

I recently attended a U2 show at Giants Stadium, and was excited to learn that this Sunday, October 25th, U2 plans to stream their final tour stop, live on YouTube for free. With 96,000 tickets sold to the Pasadena Rose Bowl show in California, this is expected to be largest concert ever streamed online.

This will be another first for U2 who produced the first concert performance to be shot in 3D for a theatrically released film.

Paul McGuinness, U2's manager tells of U2's desire to share their music across the Internet:

'The band has wanted to do something like this for a long time. As we're filming the LA show, it's the perfect opportunity to extend the party beyond the stadium. Fans often travel long distances to come to see U2—this time U2 can go to them, globally.'

The show starts at 8:30 Pacific time and can be found at: http://youtube/u2official

So fire up your computers, Internet connected televisions or Apple TVs and enjoy the free show. —Dirk Klingner

From the Windows 7 launch: Touch technology is a prominent feature

VP Brad Brooks showcasing content running on 17 devices from one Windows 7 PC. (Click to enlarge.)

After starting the Windows 7 launch here in New York with a cutesy moment—Microsoft CEO Steve Ballmer presenting Kylie, of Win7 TV-commercial fame, with a pink laptop—Ballmer and company moved right into a demonstration of the new OS’s top features. (See our related post: "Windows 7: To upgrade or not to upgrade")

Touch technology plays a big role in Windows 7, and is likely to result in a wide range of new products from manufacturers. For example, Microsoft this morning announced a new app from Amazon that will let you read your Kindle content on a Windows 7 computer. Thanks to touchscreen capabilities, you can scroll through e-books using multitouch finger gestures.

With Windows 7, Windows Media Center also gains touch-based features. Microsoft’s vice president of consumer marketing, Brad Brooks, demoed the results of a deal with CBS that will let you watch any show from the TV network on your PC. Scroll through and choose the shows using, you guessed it, your computer’s touchscreen.

In one of the launch’s “that‘s kinda cool” moments, Brooks fed music, photos, and video to 17 different pieces of equipment—several TVs, an Onkyo receiver, a digital picture frame, and an xBox 360-connected TV—all from one Windows 7 PC, all at the same time. (See image above.)

Keep an eye on our blog over the next days and weeks as we bring you news on product launches surrounding Windows 7. If you're interested in buying it, see how to buy it (legally) for under $120.
—Donna Tapellini

Apple updates iMac, MacBook, and mini: Coincidence or challenge?

Just about 48 hours before Microsoft is set to release Windows 7, its new operating system, Apple grabs the spotlight with the launch of new iMac desktops, new versions of the Mac mini, and an updated MacBook laptop.

The new iMacs start at $1,199 with a 3.06GHz Intel Core 2 Duo processor, but are also available with i5 or i7 processors. New display sizes are 21.5 inches and 27 inches. The base model also comes with 4GB of RAM and a 500GB hard drive.

The popular 13-inch MacBook now uses an LED-backlit display like that on the MacBook Pro, as well as a unibody design for lighter weight. It’s $999 with a 2.26GHz Core 2 Duo processor, 2GB of memory, and a 250GB hard drive.

The Mac mini has also been updated, with two models available. One includes a 2.26GHz Core 2 Duo processor,  2GB of memory, and a 160GB hard drive for $599. The higher-end version is $799 and has a 2.53GHz Core 2 Duo, 4GB of memory, and a 320GB hard drive. Don’t forget that you’ll need to add your own monitor, keyboard, mouse, and external speakers. —Donna Tapellini

"Green" electronics companies: What the honors mean—and don’t mean

In addition to awarding seals of supposed greenness to products, organizations and publications are also increasingly grading corporations, including many electronics and technology companies, on their environmental policies and practices.

As with the products seals, the result is information that's useful in some ways, and limited in others–as two recent "green corporation" efforts show.

Newsweek recently ranked the 500 largest U.S. companies on their environmental merits. Significantly, four of the top five companies on the list were from the electronics/technology sector; in order of ranking, they are Hewlett-Packard, Dell, Intel, and IBM. (The only non-tech entry in the top five was Johnson & Johnson, at #3.)

The survey used one of the more comprehensive approaches to date to assess corporate greenness. By looking at three main areas—environmental impact, policies and reputation—it offers a snapshot of how companies rank relative to one another.

Two-year operation nets 100 phishers

More than 100 people have been charged with identity theft and other computer-related crimes in a joint investigation by U.S. and Egyptian law-enforcement agencies.

Operation Phish Phry uncovered an international conspiracy that was allegedly using phishing tactics to steal personal information from account holders at American financial institutions. The investigation was conducted on the U.S. end by the FBI, the United States Attorney's Office, and the Electronic Crimes Task Force in Los Angeles.

The indictment charges that cyberthieves located in Egypt used classic phishing tactics to direct victims to phony Web sites, where they entered passwords, account numbers, and other data. That info was used to hack into accounts at two banks. Money was transferred from the compromised accounts to fraudulent accounts created by "runners" recruited by the U.S.-based co-conspirators.

Fifty-three defendants were charged in the United States with conspiracy to commit bank fraud and wire fraud; 47 more were charged in Egypt.

Remember never to access a financial account online by clicking on a Web link embedded in an e-mail. For more security advice, take a look at our Guide to Online Security. —Donna Tapellini

CPSC taps popular Web sites to share recall, safety information

We here on the Electronics Blog try to alert readers whenever we catch wind of a recall from the Consumer Product Safety Commission (CPSC), such as overheating laptop batteries and incendiary charging stations for Wii controllers.

Yesterday, the CPSC began reaching out directly to consumers with a multi-site, Web 2.0 blitz. For news on product recalls and other consumer safety issues, you can now tune in to the CPSC’s YouTube channel, view their new blog, check out their Flickr photo stream, and follow them on Twitter. They’ve also introduced a widget for updates on news and product recalls.

For more on the CPSC's outreach initiative, check out "CPSC ventures into the blogosphere" on the Consumer Reports Safety Blog. —Nick K. Mandle

Advocates praise FCC moves to promote net neutrality

Get ready to hear a lot more debate over how freely the Internet can be used, and by whom, following today’s announcement [PDF] by the Federal Communications Commission that the agency will weigh in to “preserve and promote the vibrant and open character of the Internet.”

Calling them “exactly the right approach,” advocates with Consumers Union, the publisher of Consumer Reports, and the Consumer Federation of America, hailed today’s moves by FCC chairman Julius Genachowski to “establish clear rules of the road for the Internet, so that consumer choice and innovation are assured.”

The FCC chief announced that the agency would embrace principles that “would prevent Internet access providers from discriminating against particular Internet content or applications” and be “transparent about the network management practices they implement.”

The new principles follow a recent FCC decision ordering Comcast to stop slowing down peer-to-peer traffic on its network—a slowdown that first become evident in press reports.

Dell settlement to spread nationwide, New York AG Cuomo says

[UPDATE: For more on the lawsuit settlement and another free online video of Attorney General Cuomo, see Cuomo: Lots of Dell users in NY are due compensation on the Consumer Reports Money Blog. —Ed.]

The $4 million settlement agreement Dell entered into with the office of New York Attorney General Andrew Cuomo could well lead to consumers nationwide receiving millions of dollars in compensation from Dell.

Other state attorneys general have also been pursuing cases against the company, said New York AG Andrew Cuomo in an interview with Consumer Reports Technology Editor Jeff Fox at a press conference held today at the magazine’s headquarters. And given the results in New York, he inferred, it’s likely that other states will succeed with their own cases.

“Even when you’re as big as Dell Computer, we still expect you to honor your contracts,” said Cuomo during the press conference. “Just because you’re big doesn’t mean you can abuse the consumer.”

As a result of the settlement, spurred by more than 3,000 complaints received by Cuomo’s office, Dell will change its warranty, advertising, and debt-collecting practices. The company will also pay New York consumers who had difficulty obtaining tech support under service contracts, or who paid interest when they believed they’d purchased their computers under a no-interest promotion.

Other companies face similar scrutiny of their tech-support and service practices, Cuomo added.

If you live outside New York State, but have had an experience with Dell similar to the types described above, you may want to contact your state attorney general to see if a similar settlement may be in the works in your state. If so, it’s a good idea to gather any documentation, such as notes and receipts, you might need to support your claim. —Donna Tapellini