Truth In Caller ID Act Would Stop Use of Fraudulent Caller ID’s

Washington, DC--Congressman Eliot Engel’s bipartisan legislation to stop the use of fake Caller IDs, which are often used to swindle people, the Truth in Caller ID Act (H.R. 1258), passed the full House today by voice vote. (View Rep. Engel’s House floor comments here - http://www.youtube.com/watch?v=BZ1ICJTQFTM )

‘Spoofing’ is the term describing technology to falsify the name and phone number appearing on Caller ID. For example, a spoofer’s call can show the call to be from a bank to persuade a person to give their Social Security and/or credit card numbers or other personal information. This information is then used to fraudulently obtain credit cards or withdraw money from a person’s bank account.

Rep. Engel, a senior member of the House Energy & Commerce committee, called identity theft a growing problem across the United States. “I am very pleased that my colleagues agreed with me, that this is another example of technology being misused by the unscrupulous to scam the unsuspecting,” he said. “Last year, the New York City Police Department uncovered an identity theft ring, using Caller ID Spoofing to victimize over 6,000 people out of more than $15 million, ruining the credit of thousands of hard-working Americans. The scariest part is this weapon is available to anybody with a web browser.”

Rep. Engel’s legislation would amend the Communications Act of 1934 making it illegal to alter Caller ID with “intent to defraud or cause harm,” and gives the Federal Communications Commission (FCC) authority to develop regulations to enforce the new law.

To ‘spoof’, a person need only to log onto a website, put in his or her phone number, the number they are calling, and the number they want to appear on the Caller ID. The website calls back – connects to the person they are calling and masks their true identity. Even the sound of his or her voice can be altered. Rep. Engel reminds everyone to not provide personal information over the phone.

Rep. Engel added, “If spoofers are able to get your information and do the cyber equivalent of ransacking your house, it can literally take years to correct the damage. Even worse, such technology can be used by stalkers and potentially violent criminals as well. We must act because lives could be lost and more people are potentially ruined. Last year, a person in New York called a pregnant woman she viewed as a romantic rival, spoofing the phone number of the woman’s pharmacist. She tricked her into taking a drug which causes abortions.”

The bill was introduced along with Congressman Joe Barton (R-TX), the ranking member of the House Energy and Commerce Committee. It had previously passed the House in both the 109th and 110th Congress. It now awaits conference with the Senate to combine with S. 30, sponsored by Sen. Bill Nelson (D-FL), which had previously passed the full Senate.

A full text of Rep. Engel’s remarks follows:

April 14, 2010

Madame Speaker--

I stand today in strong support of my legislation, the Truth in Caller ID Act. But before I begin, I first want to thank my friend and the lead Republican on this bill, Ranking Member Joe Barton. I also want to thank the chairman of the Energy & Commerce Committee Henry Waxman, as well as his staff for being so accommodating in getting this bill to the Floor today. This legislation has been developed in an extremely bipartisan manner, and I want to thank and commend everybody who worked on it.

I introduced this bill because we need an immediate change in our laws to help prevent identity theft, to crack down on fraudulent phone calls, and to protect legitimate uses of caller ID technology.

Last year, over 6,000 people were victimized by credit card fraud and identity theft. Criminals stole over $15 million from banks, and ruined the credit of thousands of victims. They were able to perpetrate this fraud in some instances by using Caller ID spoofing.

The disturbing fact about spoofing is not just that it’s legal, but how easy it is to carry out. Criminals use a tool called a spoof card to change their outgoing Caller ID, and even to disguise their voice in order to trick banks into giving them access to their victims’ accounts. This tool is available to anyone with access to a web browser.

Nobody can dispute that this legislation is necessary. Last year, a person in New York called a pregnant woman who she viewed as a romantic rival, spoofing the phone number of the woman’s pharmacist. She tricked the woman into taking a drug used to cause abortions.

Caller ID fraud has even been used to prank call the constituents of a Member of this body, with the Caller ID readout saying it came from that Member’s office. Just imagine if people committed this fraud in the days leading up to a close election.

In response to this problem, I, along with Mr. Barton, have introduced the Truth in Caller ID Act. This bill outlaws the deceptive use of caller ID spoofing technology if the intention of the caller is to deceive and harm the recipient of the call. This bill does NOT change the rules for legitimate uses of the technology. For example, a domestic abuse shelter will still be able to change their number on caller ID to protect the occupants of the shelter.

I am pleased this bill passed the House in the 109th and 110th Congresses. And I look forward to its passage again today.

I strongly urge my colleagues to support the Truth in Caller ID Act, and outlaw this type of fraud once and for all.