(DailyVantage.com) – The Federal Communications Commission (FCC) is proposing a hefty fine of $4.492 million on Telnyx after a shocking robocall scam implicated the company in a violation of regulatory standards.
At a Glance
- The FCC proposes a $4.492 million fine against Telnyx for alleged Know Your Customer violations.
- Robocall scam impersonated FCC officials, targeting staff and families.
- Scam executed by two customers using fake identities and Bitcoin.
- Telnyx claims compliance but FCC argues insufficient verification.
FCC’s Allegations Against Telnyx
The FCC accused Telnyx of failing to prevent a robocall scam that targeted its own employees through fraudulent communication. Allegedly, two of Telnyx’s customers engaged in the scam, using fabricated identities and Bitcoin transactions to evade detection. Over two days, these individuals carried out the scheme, exploiting Telnyx’s network without adequate customer verification measures in place.
The fraudulent calls were made by an artificial voice falsely claiming to be from a non-existent “FCC Fraud Prevention Team.” Victims were told they could connect with representatives by pressing certain keys, a ploy that included demands for $1,000 in Google gift cards from at least one victim. This scenario exposed gaps in Telnyx’s verification process, as claimed by the FCC.
FCC proposes a ~$4.5 million fine against Telnyx related to government imposter robocalls made on its network. Among other potential victims, the calls were made to FCC staff and their family members and purported to be from a fictitious FCC “Fraud Preve… https://t.co/UjMHRSKueq
— Steve Herman (@W7VOA) February 4, 2025
Know Your Customer Violations
The “Know Your Customer” (KYC) protocol violations are central to the FCC’s argument against Telnyx. The commission contended that Telnyx failed to verify the authenticity of the customers’ information, including address and IP address verifications. This allowed the perpetrators to bypass security measures unnoticed.
Telnyx CEO David Casem responded to these allegations by stating that Telnyx adhered to existing FCC guidelines. He strongly denied any intentional negligence on the company’s part and claimed that Telnyx acted swiftly to block the illegal activities once they were identified.
https://t.co/rPs5nxfLQR KYC isn’t a Thing, claims telco: Commissioner Brendan Carr (pictured) wants $4.5 million fine on Telnyx, for enabling “illegal robocall scheme.” #alternativepaymentfraud #brendancarr #fcc #fccfailures #fccfollies #federalcommunicationscommission #fraud…
— Security Boulevard (@securityblvd) February 7, 2025
Telnyx’s Response
David Casem reiterated that Telnyx implemented the necessary actions to prevent any potential damage caused by the scam. While the FCC argues against the efficacy of these measures, Casem maintains that Telnyx promptly mitigated risk by preventing further fraudulent activities.
This case underscores the ongoing need for strict enforcement and adherence to verification protocols across the telecommunications industry to safeguard against manipulative scams and protect businesses and individuals alike.
The FCC proposes a $4.5 million fine against Telnyx for allowing robocalls impersonating its "Fraud Prevention Team," citing non-compliance with KYC rules. Telnyx disputes these allegations, claiming the FCC has it wrong. Explore the full story here: https://t.co/R1LDE4QcOk
— Brandon M. Trube (@trubetech) February 5, 2025
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