New Attempt to Stop the Robocall Epidemic
Last updated October 9, 20225
Despite stricter regulations and improved call-blocking technology, each year Americans are still bombarded with billions of illegal robocalls—automated phone calls with prerecorded messages from scammers and unscrupulous businesses. Unwanted calls and scam texts remain the top consumer complaint at the Federal Communications Commission.
Fraudsters use robocalls because they work. Americans lost about $25 billion to scam and spam robocalls in 2023, according to Truecaller, a spam-blocking service. The average loss per victim was approximately $452.
Anyone who receives an illegal robocall can sue the company responsible. Under the Telephone Consumer Protection Act (TCPA), the penalty is a $500 fine per call. But who has the time or money to do that? So, we just hang up or maybe file a complaint.
“Illegal robocallers are very clever, constantly changing their tactics,” said John Breyault, who runs the National Consumers League’s Fraud.org website. “Our telephone system has many layers, so it’s not exactly easy to go after these guys, and frankly, our enforcement agencies are not getting the funding they need to enforce the law.”
Checkbook previously reported on the ongoing attempts to thwart robocallers.
A Different Approach
Nomorobo, a robocall blocking service launched in 2013, believes more can be done to combat the robocall epidemic. It has taken the unusual step of suing four companies—all debt collectors—it claims are “significant violators” of the TCPA.
These companies were identified through Nomorobo’s “honeypot” monitoring system, which records, transcribes, and analyzes calls it receives. The honeypot consists of 290,000 phone numbers that have not been active for nearly a decade; therefore, any calls or texts to those numbers are automatically considered unwanted and a violation of the TCPA.
“Because we have this data set, and the fact that no one else is doing this— and that it’s our mission to protect consumers—we thought this would be a great time to file these lawsuits,” said Matt Mizenko, Nomorobo’s general manager. “At the end of the day, this affects more than just us. It potentially affects our customers and others as well, who don’t have our service.”
Nomorobo is seeking treble damages of $1,500 per call, as permitted under the TCPA, in cases where the violations are deemed “willful.”
Does Nomorobo Have the Right to Sue?
Consumer advocates are eager to see if Nomorobo’s new legal approach will be successful.
“For years, consumers have benefited when class action lawyers use the TCPA to get restitution for those who are harmed by illegal robocalls,” Breyault told Checkbook. “Now, we’re going to find out whether a company can get restitution for violations of the TCPA.”
The lawsuit will hinge on whether the court decides Nomorobo has legal standing to bring this action. The big question: Was the company harmed by receiving those robocalls?
Jason Harrow, Nomorobo’s lawyer, argues that “Congress was very clear… These calls are bad; they cost money for consumers and businesses, and anyone can sue.”
Harrow acknowledges that Nomorobo’s business model requires it to receive robocalls. But, he said, the company is not “fishing” for TCPA violators by encouraging them. In its lawsuit, Nomorobo claims it was harmed by the flood of robocalls from these companies because the phone company charges for every call that comes into its honeypot.
“There’s a big difference between three or four calls from a local vendor, like a solar company that’s making calls they shouldn’t, versus a debt collector who should really know better and is making 5,000, 10,000, or 15,000 calls,” Mizenko told Checkbook.
Mizenko hopes that a successful court case, resulting in sizable fines, will encourage these companies and others “to think twice” before making illegal robocalls.
Checkbook contacted the four plaintiffs: Harris & Harris, Linebarger Goggan Blair & Samps, RSI Enterprises, and Synchrony Financial. Synchrony said it could not comment on pending litigation. The other three companies did not respond to our email requests for comments.
Hope On the Horizon?
Preventing robocalls has for years been a game of whack-a-mole. Now, artificial intelligence is making it easier for phone crooks to trick people by allowing criminals to create bogus calls with artificial voices that sound incredibly realistic.
Google, Apple, and other major tech companies are starting to utilize AI to prevent robocalls from bypassing their filters. While this should help reduce the problem, robocallers are sophisticated criminals, so a lot needs to be done on many fronts.
“In the short term, we all need to remain cautious about which calls we answer and remember to hang up whenever someone we don’t know requests money or sensitive personal information,” said Adam Levin, author of Swiped. “When in doubt, let it go to voicemail and listen to the message later.”
Protect Yourself from Robocalls Scams
Not all robocalls are illegal or unwelcome. Many are helpful, such as weather alerts, school closures, reminders about doctor appointments, and prescription pick-up notices. But you must be on guard:
Don’t trust caller ID: Fraudsters can use “spoofing” technology to display any number they want on your Caller ID, such as a bank or government agency. Spoofing can make a call from another city or country appear to be a “local” number. Remember, Social Security, Medicare, and the IRS will never call you out of the blue.
Don’t answer. If you don’t recognize the number, let the call go to voicemail and listen to it later. If the caller leaves a message claiming to be from your bank, credit card issuer, or other trusted company, do not call the number provided. Use a verified number from the company’s website, a billing statement, or your credit card.
Don’t share. Never disclose personal information, such as account numbers, Social Security numbers, your mother’s maiden name, passwords, or other identifying details, in response to unexpected calls.
Don’t pay up. Banks, retailers, and the federal government won’t insist you pay via Bitcoin (other cryptocurrency), use a peer-to-peer app (such as Venmo or Zelle), or ask you to buy gift cards.
Use available tools. Most phone companies offer apps for your mobile phone or VoIP devices that can help block unwanted calls. The FCC has a list of call blocking resources available from phone companies, phone manufacturers, and third-party screening services.
Not sure? Call for help. If you receive a call and are unsure about what to do, call the AARP Fraud Watch Network Helpline at 877-908-3360 for guidance. You do not need to be an AARP member to use this service.
More from Checkbook:
More Info:
- ARRP: How Can You Stop Illegal Robocalls
- FCC: Stop Unwanted Robocalls and Texts
- FTC: Robocall Scam Examples
- Nomorobo: What Fraud Really Sounds Like
Contributing editor Herb Weisbaum (“The ConsumerMan”) is an Emmy award-winning broadcaster and one of America's top consumer experts. He has been protecting consumers for more than 40 years, having covered the consumer beat for CBS News, The Today Show, and NBCNews.com. You can also find him on Facebook, Blue Sky, X, Instagram, and at ConsumerMan.com.