June 21, 2023

AGs Sue Avid Telecom For Providing Services to Robocallers

Government legislation has done much to counter illegal robocaller practices but has not shut down industry players determined to flout the law. One recent example is Avid Telecom, which stands accused of deliberately aiding illegal robocallers. The company allegedly created services aimed at reaching consumers through deceptive practices. 

Avid is currently facing severe repercussions for its behavior. Recently, Attorney Generals from 48 US states, excluding Alaska and South Dakota, have filed a lawsuit against Avid Telecom for actively facilitating and providing services for robocallers. The company has allegedly routed billions of illegal calls despite warnings from federal and state authorities. 

Avid Telecom Provided Services for Robocallers

The scope of Avid’s illegal behavior is shocking. Arizona’s AG states that Avid Telecom used spoofed and invalid caller ID numbers to reach consumers on the National Do Not Call Registry. Of the 7.5 billion illicit calls placed, 8.4 million were presented as coming from law enforcement and other government agencies as well as some private companies. 

Avid reportedly customized its services to aid robocallers in placing these illegal calls. The company allowed customers to place a huge number of calls rapidly and only billed them for the “duration of completed calls.” Many of these calls lasted only a few seconds, which clearly indicated they were illegal calls placed by robocallers.

Avid created a welcoming environment for robocallers by deliberately ignoring the signs of illegal activity. In fact, they appear to have courted these FCC violations for profit. 

Downstream Providers Restricted Traffic

The scheme was revealed when some downstream providers noticed the suspicious traffic and restricted it. The Industry Traceback Group sent over 300 notices to Avid Telecom about illegal robocalls in addition to other correspondence about these communications. 

Other telecom providers also complained to Avid about the apparent illegal robocalls. In fact, Verizon complained in a December 2020 letter that Avid was routing a large number of robocalls to the company. Later, Verizon began blocking Avid’s traffic due to the high level of “illegal or unwanted robocalls.” 

Despite these and other specific warnings about illegal operations, the lawsuit alleges Avid Telecom continued with its questionable practices including auto warranty robocalls and toll-free pumping/spoofing calls.

FCC Actions Against Avid Telecom and Customers

The FCC has already taken action against robocallers that worked with Avid. In March 2021, the FCC issued a record $225 million fine against John Spiller and JSquared Telecom LLC, a customer of Avid Telecom. 

In addition, the FCC sent cease-and-desist letters to seven other providers that routed illegal robocalls through Avid. Despite the company knowing about these FCC actions, Avid continued with its robocall-friendly services.

Bypassing STIR/SHAKEN Caller ID Authentication

One of Avid Telecom’s most egregious alleged actions was deliberately evading STIR/SHAKEN authentication practices. This technology uses digital tokens to verify the origins of phone calls. Avid develop methods to deliver spoofed calls despite this cornerstone of FCC regulation. 

Avid is accused of giving its customers Direct Inward Dialing numbers (DIDs) that would deliver seemingly valid caller IDs to call recipients. Wary consumers would be more likely to answer calls with a caller ID that appeared legitimate. If the proper dialing practices had been followed, many of the calls would have been blocked because their source was unverified. This alleged Avid Telecom practice would make current safeguards ineffective. 

Maintaining Consumer Trust in the Industry

Consumers are fed up with unwanted robocalls and have hoped that telecoms and the FCC would work together to minimize these scams. However, some telecom organizations still actively facilitate illegal and unwanted traffic. Consumers remain disillusioned for good reason. They are still dealing with illegal robocalls, sometimes on a daily basis. 

These continual violations mean legitimate companies must stay compliant and abide by ethical dialing practices. It’s the only way to restore consumer trust in the telecommunication industry.

Your company can take steps to improve its dialing reputation by engaging in the following practices:

• Scan newly purchased numbers for flags and avoid buying discount numbers.
• Work with trusted providers and avoid those with a history of FCC problems.
• Strive for an A-Attestation rating to ensure calls are completely authenticated.
• Stay current with and follow compliance standards.
• Train agents to use empathy in calls to avoid consumer complaints.
• Scan your numbers frequently for flags.

When businesses work to clean up their reputation in the dialing ecosystem, it helps to re-instill trust with consumers.

The Ongoing Battle Against Robocalls

Consumers and legitimate telecommunication companies are discouraged by the actions of bad actors in the industry. Some of these businesses openly flout FCC regulations and help robocallers to evade STIR/SHAKEN and other industry safeguards. They are harming the entire industry by their actions and reigniting consumer distrust. 

Improved practices and increased enforcement of current laws will help restore consumer confidence, but you need to ensure that your company is doing everything possible to stay compliant and embrace best practices. Eliminating robocalls is a long-term fight that will require constant vigilance.