FCC increases penalties for caller ID 'spoofing'

The Federal Communications Commission adopted new rules Thursday that increase the penalties for faking caller ID information in order to commit fraud or harm consumers.

The practice, known as caller ID "spoofing," can still be used for legal purposes such as safeguarding the privacy of individuals. But the commission argues spoofing is increasingly used for malicious purposes such as identity theft or placing false emergency calls to police.

"Far too often, though, fake caller IDs are used by bad actors to get money from consumers, steal consumers' identities, or stalk or harass," said Joel Gurin and Sharon Gillett, the chiefs of the FCC's Consumer and Wireline bureaus, respectively, in a statement.

"We believe our rules will take an important step toward thwarting these scammers and protecting consumers."

In compliance with the Truth in Caller ID Act signed into law by President Obama last year, the FCC rules would fine violators up to $10,000 every time they change their caller ID information with the intent to commit harm. The fine increases every day the violation continues up to a limit of $1 million.

The FCC would be able to impose fines more regularly than for other portions of the Communications Act, even against entities it does not traditionally regulate. The commission will also issue a report to Congress on where the new rules may fall short in protecting consumers from spoofing.

The report identifies several new areas of digital communications where spoofing could pose a threat, including text messaging and social media.

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