Recap of Hearing on Stopping Fraudulent Robocall Scams

The Senate Subcommittee on Consumer Protection, Product Safety and Insurance held a hearing to examine the consumer harm associated with fraudulent robocalls; the effectiveness of regulations and law enforcement in stopping these calls; and the feasibility of technological solutions aimed at preventing fraudulent robocalls from reaching vulnerable consumers.

When it comes to stopping pesky robocalls, Sen. Claire McCaskill (D-MO) likens the process to playing Whack-a-Mole in a space that has become a “criminal sandbox” for phone scammers. She played excerpts from two of the most infamous such recorded phone calls – the “Rachel from cardholder services” and the “your auto warranty is about to expire” messages – in calling on telecommunications carriers to offer technical solutions to help consumers block such calls. At the hearing, officials at the Federal Trade Commission and the Federal Communications Commission said they had stepped up their efforts but might need more authority from Congress to pursue some of the fraudulent robocallers that are based overseas. Saying that the FTC “is using every tool at its disposal to fight” robocall scammers, Lois Griesman – the agency’s associate director for marketing practices – told senators that “illegal robocalls are still a significant consumer protection problem today, because they repeatedly disturb consumers’ privacy and many of them peddle fraudulent goods and services that cause significant economic harm.” So far, the FTC has brought 34 cases involving illegal prerecorded calls against 97 companies and 77 individuals, including firms in Arizona and Florida that allegedly were involved in the “Rachel from cardholder services” calls.