FCC issues historic $300 million fine against the largest robocall scam it has ever investigated [View all]

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Source: CNN Business

CNN — The Federal Communications Commission on Thursday cracked down on a massive illegal robocall operation responsible for billions of auto-warranty scam calls in recent years, with regulators imposing a record $300 million fine on what authorities said is the largest such network it has ever investigated.

The globe-spanning illegal operation violated US telecom laws by making more than five billion robocalls to more than half a billion phone numbers over the course of just three months in 2021, the FCC said in a release Wednesday. But the campaign had been in existence for even longer, the FCC added.

Using a multitude of shell companies, aliases and fly-by-night phone providers allegedly under their control, the people behind the network — which CNN has previously reported on — had sought to dupe unwitting consumers into buying shoddy service contracts for their vehicles since 2018. The ringleaders of the operation, Roy Melvin Cox Jr. and Aaron Michael Jones, were repeat offenders who had already been under judicial orders not to engage in telemarketing.

A breakthrough in enforcement came last July, when Ohio Attorney General Dave Yost filed a lawsuit against the network that outlined many of the operation’s details, including its organizational structure. At the same time, the FCC directed US voice providers to stop carrying calls originating from providers used by the network. Within weeks, third-party industry estimates showed an 80% reduction in the volume of auto-warranty spam calls in the United States, and on Thursday, the FCC said the move ultimately led to a 99% reduction in such calls.

Read more: https://www.cnn.com/2023/08/04/tech/fcc-robocall-scam-biggest-fine/index.html