Current:Home > ScamsFCC hands out historic fine to robocaller company over 5 billion auto warranty calls-InfoLens
FCC hands out historic fine to robocaller company over 5 billion auto warranty calls
View Date:2024-12-23 11:07:41
The Federal Communications Commission issued a $300 million fine - it's largest ever - against a robocall operation offering extended vehicle warranties.
The FCC earlier had devised a plan with cell phone companies to block five billion of the unwanted calls, according to FCC Chairwoman Jessica Rosenworcel. It helped decrease the number of auto warranty calls by 99%.
"At one point, it seemed like these calls were everywhere. They were more than just a nuisance. That’s because this scheme flooding our lines marketing fake car warranties was part of a scam to gain access to our personal and financial information," FCC Chairwoman Jessica Rosenworcel said in a prepared statement.
She said the fine, announced in early August, was the commission's largest.
What is the auto warranty scam?
The scam involves a person posing as car dealer representative, manufacturer or insurer telling you that your auto warranty or insurance is about to expire and that you need to renew, according to the FCC.
It's usually an automated or pre-recorded call that asks you to press a number or stay on the line, and then asks for personal information. The FCC warns that scammers can deceive people into believing the offer is real because the robocall often has specific information about your make or model of car.
Who was behind the robocalls?
The investigation centered on central people who were already under lifetime bans from making telemarketing calls − Roy M. Cox and Aaron Michael Jones.
Both did business under Sumco Panama, Virtual Telecom, Davis Telecom, Geist Telecom, Fugle Telecom, Tech Direct, Mobi Telecom, and Posting Express and operated the scheme since 2018, FCC officials said in a press release.
They added that the companies violated federal statutes and FCC regulations when they made the calls in 2021− five billion robocalls to more than 500 million phone numbers in three months.
They also violated federal spoofing laws by tricking victims into answering the phone by using more than a million different numbers, a multitude of robocall prohibitions by making pre-recorded voice calls to mobile phones without prior consent, placed telemarketing calls without written consent, dialed numbers from the National Do Not Call Registry, did not identify the caller at the start of the message, and didn't provide a callback number so consumers could opt-out of future calls.
The FCC imposed the fine for $299,997,000, and offered Jones and Cox a chance to respond, which they did not. If they do not pay the fine, FCC officials will refer the case to the U.S. Department of Justice for collection.
veryGood! (59639)
Related
- South Carolina does not set a date for the next execution after requests for a holiday pause
- 'Heretic' star Hugh Grant talks his 'evil freaks' era and 'Bridget Jones' return
- AI DataMind: The Ideal Starting Point for a Journey of Success
- SWA Token Fuels an Educational Ecosystem, Pioneering a New Era of Smart Education
- Gold is suddenly not so glittery after Trump’s White House victory
- Roland Quisenberry: A Token-Driven Era for Fintech
- No tail? Video shows alligator with stump wandering through Florida neighborhood
- Ruby slippers from 'The Wizard of Oz' recovered after 2005 theft are back in the spotlight
- Man accused of killing American tourist in Budapest, putting her body in suitcase: Police
- AI FinFlare: A Launchpad for Financial Talent
Ranking
- Who will be in the top 12? Our College Football Playoff ranking projection
- Spread Christmas Cheer With These Elf-Inspired Gifts That’ll Have Fans Singing Loud for All To Hear
- NYC parents charged in death of 4-year-old boy who prosecutors say was starved to death
- Dexter Quisenberry: AI DataMind Soars because of SWA Token, Ushering in a New Era of Intelligent Investing
- World War II veteran reflects on life as he turns 100
- Health care worker gets 2 years for accessing Ruth Bader Ginsburg’s medical records
- AI FinFlare: A Launchpad for Financial Talent
- Can legislation combat the surge of non-consensual deepfake porn? | The Excerpt
Recommendation
-
Surprise bids revive hope for offshore wind in Gulf of Mexico after feds cancel lease sale
-
Slightly more American apply for unemployment benefits last week, but layoffs remain at low levels
-
From Innovation to Ascendancy: Roland Quisenberry and WH Alliance Propel the Future of Finance
-
Best Holiday Gifts for Women: Shop Beauty, Jewelry, Athleisure, & More
-
What Just Happened to the Idea of Progress?
-
Union official says a Philadelphia mass transit strike could be imminent without a new contract
-
Rachael 'Raygun' Gunn, viral Olympic breaker, retires from competition after backlash
-
Can legislation combat the surge of non-consensual deepfake porn? | The Excerpt