Note to self … if you are going to try to scam individuals by pretending to be someone from the Federal Communications Commission, don’t call people who work at the Federal Communications Commission.
The FCC has proposed a $4.5 million fine against Telnyx LLC for its role in enabling scam robocalls. The calls, which targeted both FCC employees and their family members, lasted one day in February 2024. These calls, made by individuals posing as FCC officials, used a robocall system to impersonate the agency’s fraud prevention team and demanded that recipients pay $1,000 in Google gift cards to avoid jail time.
FCC staff, who received these scam calls, reported hearing an automated message that falsely claimed they were being contacted by the “Fraud Prevention Team,” a department that does not exist at the FCC. The calls instructed recipients to either speak with a representative or schedule a callback, further compounding the deception.
The scheme was discovered when the FCC began its investigation into Telnyx, the voice service provider that facilitated the calls. Telnyx reportedly violated the FCC’s “Know Your Customer” (KYC) rules, which require telecom providers to verify the identities of their customers. According to the FCC, Telnyx allowed customers using fake identities to gain access to calling services. These individuals used the alias “Christian Mitchell” and “Henry Walker” and paid with Bitcoin.
While Telnyx flagged and shut down the accounts the day after detecting the fraudulent activity, the FCC asserts that Telnyx failed to perform due diligence when onboarding customers. The service provider accepted minimal and fraudulent customer information, including fake physical addresses and email domains. In response, Telnyx has denied the allegations and expressed plans to contest the fine.
The FCC’s proposal to fine Telnyx was approved in a 3-1 vote, with Chairman Brendan Carr and two Democratic commissioners backing the decision. However, Commissioner Nathan Simington, a Republican, dissented, citing concerns over a recent Supreme Court ruling that limits the power of federal agencies to impose fines in favor of jury trials.
As this case unfolds, Telnyx will have the opportunity to contest the fine, and the FCC will review its response before making a final determination.
