Fcc proposes tougher rules to stop scammers activating phone service

The Federal Communications Commission (fcc) is cracking down on scammers by proposing stricter rules for how phone carriers verify customers. The 'Know Your Customer' (KYC) regulations would require carriers like AT&T, T-Mobile and Verizon to conduct more rigorous screenings of new and renewing customers.

Fcc seeks to cut off scammers at the source

The FCC wants to strengthen customer assessment standards by requiring carriers to verify names, addresses, government IDs and alternative phone numbers before enabling service. Without these checks, scammers would be locked out.

Carriers currently have a lenient enforcement of rules aimed at preventing illegal calls, allowing scammers to continue defrauding citizens with little accountability. The new proposal ties fines to call volume, incentivizing better vetting by originating providers.

However, critics argue that carriers have a poor security track record, introducing more friction may hinder innocent customers from getting service, and forcing carriers to handle more personal data could lead to new breaches. The rules' application to both postpaid and prepaid accounts also remains unclear.