Why spam robocalls are increasing and what's being done about it

Spam phone calls are getting worse. But they could get better soon. Source: Reuters
Spam phone calls are getting worse. But they could get better soon. Source: Reuters

Robots and computers aren’t just taking people’s jobs, they’re also calling everybody and leaving messages about sweet business loan opportunities that you have been chosen for. Recently, these annoying spam calls have been on the rise, leaving people increasingly frustrated.

It’s hard to measure robocall volume directly. Ajit Pai, the new chairman of the Federal Communications Commission, put the figure at 2.4 billion calls each month. If there isn’t great data about the number of unwanted calls which feature a recorded message instead of a live person, a good proxy is the number of consumer complaints.

Both the FCC and Federal Trade Commission work to fight robocalls. Janice Kopek, the coordinator of the FTC’s Do Not Call program, told Yahoo Finance the agency typically receives about 5 million complaints and about 3.4 million of those come from robocalls.

The robocall epidemic has a very simple cause: Moore’s law and technological advances. “The tech to make these calls is readily accessible and inexpensive, so years ago it would cost you to pay telemarketers to sit and make the calls, and the calls themselves would expensive,” Kopek said. “Now through voice and internet technology you can blast out billions of calls with prerecorded messages from anywhere in the world and that can cost you pennies.”

The ever-growing flood of robocall puts the FTC’s robocall enforcement division at an incredible disadvantage. It’s a small US government agency against a pest that can be outside the commission’s jurisdiction. Many of the robocalls — the free cruises, IRS scams, and business financing — come from beyond US borders, from far-flung locals in Eastern Europe, Asia, or pretty much wherever there is internet.

It’s not just annoying, it’s expensive

Robocalls aren’t just prank calls on an industrial level. They cost people in the US hundreds of millions each year due to scams. “The first type is a telemarketing call that’s trying to get you to buy something or assess your interest,” said Kopek. And even if you’re not on the Do Not Call list, Kopek says that call is illegal.

The second type is pure scam, trying to lure people using fear or a tantalizing opportunity. “We see all sorts of impostor scams where people are calling and pretending to be a [legitimate] government [agency], corporation, relative and try to get you to send money,” said Kopek. “Microsoft technical support,” IRS scams, lottery scams, elderly grandparents scams are all popular – and malicious – options that unfortunately succeed.

Fighting the good fight

Though you’d never notice due to the deluge of calls, the FTC has been tracking down robocallers and slapping them with lawsuits. Kopek told Yahoo Finance that the agency has made 131 law enforcement actions going after over 700 companies and individuals who it has alleged are responsible for illegal calls to consumers.