The Federal Communications Commission (FCC) has proposed a $4.49 million fine against VoIP provider Telnyx for allegedly failing to prevent fraudulent robocalls impersonating a fictitious FCC “Fraud Prevention Team.”

The calls, made between February 6-7, 2024, originated from two accounts registered under the names “Christian Mitchell” and “Henry Walker,” using email addresses from the mariocop123.com domain. These “MarioCop” accounts made 1,797 calls, including to FCC staff and their families, before being terminated.

The scam involved automated messages claiming to be from the FCC’s non-existent Fraud Prevention Team, with at least one recipient being pressured to pay $1,000 in Google gift cards to avoid alleged criminal charges.

The FCC claims Telnyx violated Know Your Customer (KYC) rules by not properly verifying customer identities, accepting basic information without corroboration. Required verification measures include government-issued IDs, corporate records, and third-party address verification.

Telnyx, a global cloud-based voice service provider operating in over 30 countries, strongly denies the allegations. The company states it has exceeded FCC’s KYC requirements and claims the commission is mistaken about applicable industry standards.

FCC Chairman Brendan Carr emphasized that combating illegal robocalls remains a top priority, while Acting Enforcement Bureau Chief Patrick Webre stressed providers’ responsibility to secure their networks against fraudulent activities.