Ten-million fine for spam: the American fraudster faced a tough court decision

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Will the life of a phone bully be enough to pay off a debt to the state?

A U.S. federal court has imposed a $ 9,918,000 fine and issued an activity ban to an individual named Scott Rhodes for making thousands of fake automated robocalls to residents of the United States.

Robocalls are automated phone calls that use software to automatically dial numbers and deliver a pre-recorded message to multiple recipients.

Despite the legality of this technology and its widespread use, including sales, public service announcements, charity requests, and political campaigns, cybercriminals use robocalls, among other things, to spread misinformation and various kinds of fraud, which leads to financial losses and distress on the part of the population.

Back in 1991, the US government passed the Consumer Protection from Phone Calls Act (TCPA), which also restricts the use of robocall technology without the recipient's consent or in cases of abuse, such as fake tax collection alerts.

The "spoofing" technique, often used in conjunction with robocalls, allows you to fake the caller ID on the recipient's device, hiding the real identity of the caller and making the call appear to be local or originating from a reputable or government organization.

The US Department of Justice called the actions of Scott Rhodes "illegal and malicious," emphasizing that he preferred to launch robocall campaigns against specific regions with provocative and disturbing messages.

As an example, hundreds of fake robocalls made by Rhodes were targeted at Brooklyn residents after the murder of a local woman. Similarly, more than 2,000 fake robocalls were sent to residents of Charlottesville, Virginia, during the investigation and prosecution of James Alex Fields Jr. for killing one woman and injuring dozens during a "Unite the Right" rally in August 2017.

Residents who received these calls reported them to the Federal Communications Commission( FCC), thanks to which the authorities were able to track this malicious activity all the way back to Rhodes, a resident of Idaho and Montana.

The U.S. Department of Justice filed a lawsuit against Rhodes in September 2021, and a no-trial ruling was issued in October 2023.

A few days ago, the story finally reached its climax: on March 22, a federal court in Montana imposed a fine of $ 9.9 million on Rhodes and a ban on future violations of the Caller Identification Truth Act and the Consumer Protection from Phone Calls Act.

In recent years, the US authorities have already imposed very large fines on the organizers of robocalls. For example, in August 2023, the FCC announced a record $ 300 million fine against an international network of companies that made more than five billion fraudulent robocalls. And in February 2022, the FCC proposed imposing a $ 45 million fine on a health insurance company for more than 500,000 illegal robocalls.

This decision underscores the determination of the US authorities to combat the illegal use of robocall technology and spoofing, protecting citizens from fraudulent activities and intrusive advertising.
 
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