Regulatory Efforts to Combat Spam and Scam Calls: Are They Enough?

Regulatory Efforts to Combat Spam and Scam Calls: Are They Enough?

Spam and scam calls are a major issue in the US, causing frustration and financial harm to millions each year. According to the Federal Communications Commission (FCC), US consumers receive approximately 4 billion robocalls per month, highlighting the widespread challenge of combating illegal robocalls and caller ID spoofing.

While regulatory actions have been taken, they haven't been enough to stop the flood of unwanted calls. So, are these efforts enough to protect consumers, or is more needed?

In this blog, we’ll explore the current regulations, the role of technology in combating spam and scam calls, and practical tools like the CPR Call Blocker that help consumers control their own protection.

Regulatory Efforts to Combat Spam and Scam Calls: Are They Enough?

The Impact of Spam and Scam Calls on Americans

Spam and scam calls are more than just an inconvenience—they can have serious consequences for individuals and communities. These calls not only cause widespread frustration but also lead to significant financial losses and emotional distress. As the number of robocalls continues to rise, the toll on American consumers has never been higher.

Financial Losses

Scam calls are a direct route to financial theft, with Americans losing over $19 billion annually to phone fraud, according to the Federal Trade Commission (FTC). Scammers often trick victims into revealing sensitive financial information, leading to identity theft and unauthorized transactions.

Emotional Distress

Many scam calls prey on vulnerable individuals, such as the elderly, causing stress and anxiety. Victims often feel violated and fearful of their personal information being exploited, leading to long-lasting emotional effects.

Time Wasted

Dealing with unwanted spam calls wastes valuable time. According to YouMail’s robocall report, the average American spends 11 hours annually dealing with spam calls, which could otherwise be spent on productive tasks or spending time with family.

Erosion of Trust in Communications

As scam and spam calls become more frequent, people grow increasingly distrustful of legitimate calls, including from businesses, healthcare providers, and government agencies. This erosion of trust can lead to missed important communications or appointments.

Increased Costs for Service Providers

Telecom companies are often left to bear the costs of combating robocalls, including implementing blocking systems and responding to consumer complaints. These efforts can drive up operating costs, which may be passed on to consumers in the form of higher service fees.

Regulatory Efforts to Combat Spam and Scam Calls: Are They Enough?

Current Regulatory Efforts to Combat Spam and Scam Calls

To address the growing issue of spam and scam calls, several laws and regulations have been enacted to provide consumer protections and target the perpetrators. While these efforts have made strides in reducing unwanted calls, challenges remain in enforcement and keeping pace with rapidly evolving tactics used by scammers.

Truth in Caller Identification Act

The Truth in Caller Identification Act, passed in 2009, targets one of the most common tactics used by scammers—caller ID spoofing. This law makes it illegal for telemarketers or scammers to falsify their phone numbers in order to deceive or defraud consumers.

While the Act has been effective in curbing spoofing, its enforcement has been difficult due to the international nature of many scam operations and the challenge of tracing fraudulent calls back to their origins.

Telephone Consumer Protection Act

Enacted in 1991, the Telephone Consumer Protection Act (TCPA) restricts telemarketing calls, including robocalls, and requires businesses to obtain prior consent before making automated or prerecorded calls to consumers' phones.

The law has been updated by the FCC over the years to address new forms of robocalls, but some loopholes remain. For example, certain types of robocalls, such as those related to political campaigns or charities, are often exempt from the regulations.

Telephone Robocall Abuse Criminal Enforcement and Deterrence Act

The Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (TRACED Act), passed in 2019, introduced more stringent measures to combat robocalls. One key provision is the requirement for all phone carriers to implement Secure Telephony Identity Revisited/Signature-based Handling of Asserted Information Using Tokens (STIR/SHAKEN) technology, which authenticates the caller’s ID and helps prevent spoofing.

The law also empowers the FCC to impose higher fines for violations and provides consumers with greater recourse in disputing unwanted calls. However, while the TRACED Act has made significant progress in reducing robocalls, scammers continue to adapt, and enforcement remains a challenge.

Robocall Blocking Regulations

In 2021, the FCC introduced new rules to make it easier for phone companies to block illegal robocalls. Under these rules, carriers are required to block calls that appear to be fraudulent or originate from sources that are known to engage in illegal activities. The regulation mandates that phone providers implement call-blocking tools for consumers and take action against high-risk robocallers. 

State-Level Efforts and Legislation

In addition to federal regulations, many US states have passed their own laws to combat spam and scam calls. For example, several states have introduced stricter telemarketing regulations, including bans on robocalls, and enhanced penalties for fraudsters. Some states have also partnered with theFCC and FTC to launch public awareness campaigns to educate consumers on how to recognize and avoid scam calls. 

Regulatory Efforts to Combat Spam and Scam Calls: Are They Enough?

Are These Efforts Enough?

Although these regulatory efforts are important, they have not been enough to eliminate the flood of spam and scam calls entirely. Several challenges remain that prevent these efforts from fully protecting consumers.

Technological Challenges

One of the biggest obstacles is the pace at which scammers adopt new technologies. VoIP systems and other communication technologies make it simple for fraudsters to spoof numbers and hide their true identity. The STIR/SHAKEN technology introduced by the TRACED Act helps prevent some types of spoofing, but scammers are constantly developing new ways to circumvent detection.

Enforcement Difficulties

Enforcing anti-robocall regulations is especially difficult because many scammers operate outside the US. They often use international call centers and call-routing systems that make it challenging for US authorities to trace and penalize the offenders. This gap in enforcement allows scammers to continue operating with relative impunity.

Consumer Awareness and Education

Although consumers are becoming more aware of the risks associated with spam and scam calls, many still fall victim to these schemes. A lack of awareness regarding how to protect oneself—such as through using call-blocking technology or registering with the National Do Not Call Registry—leaves many individuals vulnerable. Furthermore, some consumers may not even realize they are being targeted until it's too late.

Conclusion 

Although current regulatory efforts, such as the TRACED Act, TCPA, and Truth in Caller ID Act, have made strides in reducing spam and scam calls, they are not enough on their own. As technology continues to evolve, so too do the methods used by scammers. 

The fight against spam and scam calls requires a multi-pronged approach, including better enforcement, consumer education, and the adoption of effective call-blocking technologies. Until scammers can be fully deterred, consumers will need to rely on a combination of government regulations and consumer-driven solutions to safeguard their privacy and security.

Regulatory Efforts to Combat Spam and Scam Calls: Are They Enough?

The CPR Call Blocker Solution

One of the most effective tools available for preventing scam calls is the CPR Call Blocker. Designed to protect both households and businesses, this innovative device can block thousands of scam numbers with the push of a button.

Unlike many other call-blocking solutions, CPR Call Blocker allows users to manually block unwanted numbers, giving them full control over their phone lines. It also comes pre-programmed with thousands of known scam numbers, ensuring that users are protected from day one.

For households, CPR Call Blocker offers peace of mind, particularly for elderly individuals who are often prime targets for phone scams. Businesses benefit from reduced disruptions and improved productivity, as fewer scam calls reach their phone lines.

Please browse our selection of products or contact us so we can assist you.