FCC proposes new rule to further crackdown on illegal robocalls

The FCC on Thursday said it is considering a new rule meant to combat robocalls that would force originating providers to gather more information from customers before they allow calls, verify the provided data more carefully and be assessed steeper penalties when they fail to stop illegal robocalls from being made on their networks.

The agency already has so-called know your customer (KYC) rules in place to fight illegal robocalls, but in a fact sheet describing a new notice of proposed rulemaking the FCC said the existing system is not working because “some originating providers do not do enough.” 

“The result is more illegal calls that defraud American consumers and open our communications network to vulnerabilities,” the fact sheet said.

The FCC is seeking public comment on the new proposed rule, which it said would apply to traditional voice service, commercial mobile radio service and interconnected Voice over Internet Protocol (VoIP) service providers.

The agency is proposing a new system for fining providers who fail to do enough to verify their customers by changing penalties for KYC violations so that they are assessed on a per-call basis to “best correlate penalties to the volume of illegal calls made, and thus the harm caused by any one caller.”

Other proposed rule changes include requiring originating providers to obtain the name, physical address, government issued identification number and alternative telephone number of any new and renewing customers before allowing use of their services. High volume customers would need to provide information about why they want to use the service — for example, for marketing — and the IP address from which calls will be placed, according to the fact sheet.

If the proposed rulemaking is approved, originating providers also will be mandated to collect records — such as a copy of government issued identification — verifying the customer’s identity. 

The FCC said it is also asking for public comment on a proposed new requirement that would mandate that providers store relevant records for at least four years after a relationship with a customer has ended.

Other proposed measures include potentially requiring providers to reverify KYC customer data if unusual activity occurs; forcing them to collect more information from customers deemed to have more risk factors; and maintaining different standards for prepaid versus postpaid services,

The FCC portrayed the proposed rulemaking as vital not only to block consumer fraud, but also as an imperative for law enforcement investigating serious crimes.

“Beyond allowing illegal calling, this lack of diligence on the part of some originating providers can make it difficult for law enforcement to identify criminals that use the telephone network to perpetrate drug deals, violent crimes, and human trafficking,” the fact sheet said.

The FCC has long battled illegal robocalls and yet they continue to be an entrenched problem.

On April 2nd, the agency proposed fining the voice service provider Voxbeam Telecommunications $4.5 million for allegedly taking call traffic from an unauthorized foreign provider.

The agency said that by allowing the “suspicious” call traffic, Voxbeam facilitated “financial impersonation robocalls” that were made to American consumers using non-compliant accounts.

The fine will not be finalized until Voxbeam is given the chance to explain its actions, the FCC said.

Voxbeam did not respond to a request for comment.