FCC Strengthens Telecom KYC Rules to Combat Robocalls and Foreign Threats

The Federal Communications Commission (FCC) unanimously approved new regulations on Wednesday to strengthen telecom companies’ Know Your Customer (KYC) requirements, targeting illegal robocalls, cybersecurity threats, and vulnerabilities in overseas equipment-testing labs.

The measures, passed by all five commissioners, aim to close loopholes that have allowed banned foreign entities to exploit U.S. telecom networks. FCC Chair Brendan Carr highlighted the urgency of the issue, stating that some telecoms currently "do the bare minimum" to verify callers, enabling illegal robocalling schemes.

"As we have continued to investigate the problem of illegal robocalls over the last year, it has become clear that some originating providers are not doing enough to vet their customers, allowing bad actors to infiltrate our U.S. phone networks."

Under the new rules, telecoms may be required to verify a customer’s name, address, government ID, and alternative phone numbers before activating their service. The FCC also plans to tie penalties to the volume of illegal calls placed, addressing gaps in enforcement where carriers relied on self-attestation or third-party verification.

One notable case involved a telecom that transmitted thousands of fraudulent robocalls mimicking President Joe Biden during the 2024 New Hampshire presidential primary. Initially, the carrier reported to the FCC that it had "the highest level of confidence" in the caller’s identity—only for the claim to be debunked when the robocalls were traced to spoofed numbers linked to a former state Democratic Party official.

The FCC also took aim at foreign entities on its covered entity list, which bans companies from Russia and China from selling equipment in the U.S. due to national security concerns. Commissioner Olivia Trusty, who spearheaded the rule, emphasized the growing cybersecurity threats facing telecom networks:

"In response to these growing hostilities, it is imperative that we re-examine policies that permit access to U.S. networks to ensure that frameworks originally designed to promote economic growth are not exploited in ways that jeopardize our national and economic security."

Additionally, the FCC passed a rule to refuse recognition of any overseas testing or equipment lab that lacks a reciprocity agreement with U.S.-based labs. This builds on efforts from last year to prohibit telecoms from relying on unapproved foreign testing facilities.