The Federal Communications Commission has implemented several significant changes to caller identity verification systems and related telecommunications regulations, marking a new phase in the agency’s efforts to combat fraudulent calling practices. The changes come amid a global surge in telecommunications fraud, including high-profile SIM swap attacks and sophisticated robocall schemes.
The FCC recently levied a $4.5 million fine against telecommunications provider Telnyx for failing to properly implement “Know Your Customer” (KYC) procedures. The enforcement action, the FCC’s first regarding KYC practices, came after a Telnyx customer made approximately 1,800 prerecorded scam calls during their first day of service. While the FCC referenced the August 2024 Lingo Consent Decree as an example of acceptable KYC measures, the agency has not explicitly defined specific required practices. The enforcement follows similar initiatives worldwide, including Vietnam’s enhanced telecommunications verification requirements and India’s stricter caller identification protocols.
New rules under the Telephone Consumer Protection Act (TCPA) Consent Order will take effect on April 11, 2025. Telecommunications carriers and interconnected Voice over Internet Protocol (VoIP) providers must submit annual certifications documenting their compliance with Customer Proprietary Network Information (CPNI) rules by March 1, 2025. Additionally, the FCC has adopted new Robocall Mitigation Database rules, which will become effective 30 days after Federal Register publication. The measures build upon the FCC’s previous STIR/SHAKEN implementation requirements, which have been crucial in combating caller ID spoofing.
The commission has also addressed SIM swap and port-out fraud through regulations adopted on November 15, 2023. The rules require wireless providers to enhance their customer authentication procedures, notification policies, and record retention practices. Implementation will begin following the Federal Register’s publication of the Office of Management and Budget’s approval, which was issued on January 15, 2025. The regulations come in response to increasing incidents of SIM swap fraud, including nationwide criminal schemes that have resulted in significant financial losses.
The new requirements establish a comprehensive approach to addressing various forms of telecommunications fraud and unauthorized access, creating more stringent verification requirements across multiple aspects of carrier operations. The measures complement recent industry innovations such as enhanced caller identification services that provide additional visual verification elements for legitimate business calls.
Sources: Mondaq, Nelson Mullins, TCPA World, Law360
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