FCC fines illegal robocalling company record $300 MILLION after making more than five billion calls to more than 500 million phone numbers in three months
The Federal Communications Commission (FCC) has imposed a record $299,997,000 million fine for a car warranty scam operation.
The fine hit an “international network of companies” after more than five billion robocalls were made to more than 500 million phone numbers in three months in 2021.
The companies allegedly violated federal statutes, FCC regulations and federal spoofing laws by using more than a million different caller IDs to deceive people.
They have also been accused of calling numbers on the National Do Not Call Registry, making pre-recorded voice calls and not providing a call back number so people can block the unwanted callers.
The Federal Communications Commission (FCC) has imposed a record $299,997,000 million fine for a car warranty scam operation
One of the most common calls contained the following message:
“We’ve been trying to reach out to you about your car’s extended warranty.
“You should have received something in the mail about your car’s extended warranty. Since we have not received a response, we will give you one last courtesy call before closing your file.
“Press 2 to be removed and put on our do not call list. Press 1 to speak to someone about extending or repairing your car’s warranty.
“Again, press 1 to speak to a warranty specialist. (Pause) Or call our 800 number at 833-304-1447.”
The months-long investigation culminated in what the FCC described as the “largest illegal robocall operation” the agency has encountered to date.
The fine was proposed in December 2022, with the FCC noting that it would provide the parties with an “opportunity to respond, which they did not, resulting in today’s unprecedented fine.”
The fine was proposed in December 2022, with the FCC noting that it would provide the parties with an “opportunity to respond, which they did not, resulting in today’s unprecedented fine.”
The FCC has had little success in the past collecting fines issued against robocallers and will refer unpaid fines to the Justice Department for enforcement.
Under the guise of multiple companies including Sumco Panama, Virtual Telecom, Davis Telecom, Geist Telecom, Fugle Telecom, Tech Direct, Mobi Telecom and Posting Express, millions hoped to be duped.
“Since 2018, this company has operated a complex arrangement designed to facilitate the sale of vehicle service contracts under the false and misleading claim of selling auto warranties,” the FCC said.
“Two of the operation’s central players, Roy M. Cox and Aaron Michael Jones, were given lifetime suspensions for making telemarketing calls following lawsuits from the Federal Trade Commission and the state of Texas.”
The FCC took action last year to block the robocalling scheme, which ordered “all US-based voice service providers to stop carrying traffic associated with certain numbers.”
As a result, the FCC claims that 99 percent of these illegal car warranty robocalls have dropped.
The company made a staggering 5 billion scam calls over the course of three months in 2021, which the FCC says is enough to have “called every person in the United States 15 times”
The FCC coordinated efforts last year with the Ohio Attorney General’s office, which filed a lawsuit against Jones, Cox and others involved in the plan
The FCC coordinated efforts last year with the Ohio Attorney General’s office, which filed a lawsuit against Jones, Cox and others involved in the scheme.
Previously, Cox was banned from telemarketing in a 2013 settlement with the Federal Trade Commission.
The operation allegedly distributed illegal robocalls offering credit card interest rate reduction programs, extended car warranties and home security systems.
At the time, Cox was handed a “civil fine of $1.1 million which will be suspended for his inability to pay.”
While the relentless calls hurt some, one man took the opportunity to turn the tables on scammers who recorded the results and posted them online.
The video posted last year titled “Messing with the Car Warranty Scammers – 2021 Compilation” was viewed 3.2 thousand times and lasted almost 20 minutes – illustrating the number of times this person was called.
The YouTube video’s caption reads, “If you’re watching this, chances are you’ve gotten one of those robocalls saying your car’s warranty is about to expire or has expired, and to take action now to get coverage.” to recover.
“Here is a collection of the vast majority of these calls I received in 2021.
While the relentless calls were detrimental to some, one man took the opportunity to turn the tables on scammers who recorded the results and posted them online
“These calls are trying to sell you fake warranty coverage that doesn’t actually cover expensive repairs.”
The person who filmed the video goes on to explain that there is a catch, however.
“To qualify for this false coverage, you must have a car manufactured in 2006 or later, 10 years newer than the vehicle I’m driving,” he continued.
“Even though I don’t own a vehicle new enough to be appropriate for this scam coverage, I still like to throw curveballs at these callers and make them a little nervous when I address them on their script questions.”