FCC Enters Consent Decree with Lingo Telecom

The FCC recently published a Consent Order that it entered into with Lingo Telecom.

Lingo Telecom was one of the carriers that carried spoofed robocalls with a deepfake voice message, falsely claiming to be from President Biden to New Hampshire voters.

The claims against Lingo involved alleged violations of STIR/SHAKEN requirements regarding attestations. To resolve the matter, Lingo Telecom agreed to implement a comprehensive compliance plan and pay a $1,000,000 civil penalty. The compliance plan includes:

• Establishing operating procedures for its employees to ensure compliance with STIR/SHAKEN rules.

• Developing and distributing a compliance manual.

• Implementing a compliance training program.

• Reporting any noncompliance within 15 calendar days.

• Filing compliance reports with the FCC.

• Lingo Telecom can only apply an A-level attestation (the highest level of validation indicating a high degree of confidence in the caller ID information) if it has directly provided the Caller Identity to the calling party associated with the call.

The Order is particularly instructive in that it requires Lingo Telecom to implement specific requirements regarding its KYC obligations. Carriers are now able to get a sense of the specific information regarding a potential wholesale or retain customer the FCC believes it should obtain during the KYC process. All carriers should consider seeking this information during the onboarding process. The following is a summary of these requirements:

Enhanced Know Your Customer (KYC) Measures for Customers:

Lingo Telecom must comply with existing FCC regulations regarding KYC for customers.
For customers who purchase SIP Trunking Products, Lingo Telecom must obtain:
Legal business name and supporting records.
Place of formation and supporting records.
Proof of good standing in the place of formation (within the past six months).
U.S. federal Employer Identification Number or Business Registration Number.
Physical business address and supporting records.
Active telephone number and supporting records.
Type of goods or services offered and supporting documentation.
Name of the authorized individual acting on behalf of the customer.
Confirmation that the individual has the authority to represent the customer.
Confirmation that the customer has not been subject to any adverse final determinations related to robocall violations.
For individual customers, Lingo Telecom must obtain:
Name and supporting records.
Physical address and supporting records.
Active telephone number and supporting records.
Type of goods or services offered and supporting documentation.
Confirmation that the customer has not been subject to any adverse final determinations related to robocall violations.

Enhanced Know Your Customer Measures for Upstream Providers:

Lingo Telecom must comply with existing FCC regulations regarding KYC for immediate upstream providers (those providing calls to Lingo Telecom).
For each upstream provider, Lingo Telecom must obtain:
All information detailed in section III(3)(a) (regarding KYC for customers). o The upstream provider’s active Robocall Mitigation Database filing.
Confirmation from the Industry Traceback Consortium that the upstream provider has not failed to respond to traceback requests within the past 12 months.
Confirmation that the upstream provider imposes contractual obligations on its customers to prohibit unlawful traffic.
Confirmation that the upstream provider has mechanisms in place to ensure its clients, employees, and/or contractors comply with robocalling restrictions.