[Congressional Record Volume 155, Number 2 (Wednesday, January 7, 2009)]
[Senate]
[Pages S173-S174]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON, of Florida (for himself, Ms. Snowe, Mrs. 
        McCaskill, and Ms. Klobuchar):
  S. 30. A bill to amend the Communications Act of 1934 to prohibit 
manipulation of caller identification information; to the Committee on 
Commerce, Science, and Transportation.
  Mr. NELSON of Florida. Mr. President, American consumers and public 
safety officials increasingly find themselves confronted by scams in 
the digital age. One of the most recent scams is known as caller I.D. 
``spoofing.'' Today, I am introducing a bipartisan bill with Senators 
Snowe, McCaskill and Klobuchar--The Truth in Caller I.D. Act of 2009--
to put an end to fraudulent caller I.D. spoofing.
  What is caller I.D. spoofing? It's a technique that allows a 
telephone caller to alter the phone number that appears on the 
recipient's caller I.D. system. In other words, spoofing allows someone 
to hide behind a misleading telephone number to try to scam consumers 
or trick law enforcement officers.
  Let me give you a few shocking examples of how caller I.D. spoofing 
has been exploited during the past 4 years:
  In one very dangerous hoax, a sharp-shooting SWAT team was forced to 
shut down a neighborhood in New Brunswick, NJ, after receiving what 
they believed was a legitimate distress call. But what really happened 
was a caller used spoofing to trick law enforcement into thinking that 
the emergency call was coming from a certain apartment in that 
neighborhood. It was all a cruel trick perpetrated with a deceptive 
telephone number.
  In another example, identity thieves bought a number of stolen credit 
card numbers. They then called Western Union, set up caller I.D. 
information to make it look like the call originated from the credit 
card holder's phone line, and used the credit card numbers to order 
cash transfers, which the thieves then picked up.
  In other instances, callers have used spoofing to pose as Government 
officials. In the past year, there have been several instances of 
fraudsters using caller I.D. fraud to pose as court officers calling to 
say that a person has missed jury duty. The caller then says that a 
warrant will be issued for their arrest, unless a fine is paid during 
the call. The victim is then induced to provide credit card or bank 
information over the phone to pay the ``fine.''
  Furthermore, while these examples are serious enough, think about 
what would happen if a stalker used caller I.D. spoofing to trick his 
victim into answering the telephone, giving out personal information, 
or telling the person on the other end of the line about their current 
whereabouts. The results could be tragic.
  There are a number of Internet Web sites--with names like 
Tricktel.com and Spooftel.com--that sell their services to criminals 
and identity thieves. Any person can go to one of these Web sites, pay 
money to order a spoofed telephone number, tell the Web site which 
phone number to reach, and then place the call through a toll-free 
line. The recipient is then tricked when he or she sees the misleading 
phone number on his or her caller I.D. screen.
  A new Web site--Dramatel.com--even offers a prepaid calling card 
platform that combines a caller I.D. spoofing service with other 
features that allow a fraudster to disguise their voice and record the 
entire call. It's hard to imagine what legitimate purpose this service 
could possibly offer--other than providing a tailor-made mechanism for 
criminals to prey on innocent victims.
  In essence, these Web sites provide the high-tech tools that 
criminals need to do their dirty work. Armed with a misleading phone 
number, an identity thief can call a consumer pretending to be a 
representative of the consumer's credit card company or bank. The thief 
can then ask the consumer to authenticate a request for personal 
account information. Once a thief gets hold of this sensitive personal 
information, he can access a consumer's bank account, credit card 
account, health information, and who knows what else.
  Furthermore, even if a consumer does not become a victim of stalking 
or identity theft, there is a simple concept at work here. Consumers 
pay money for their caller I.D. service. Consumers expect caller I.D. 
to be accurate because it helps them decide whether to answer a phone 
call and trust the person on the other end of the line.
  In June 2007, I chaired a Senate Commerce Committee hearing on caller 
I.D. spoofing. At that hearing, there was broad consensus that caller 
I.D. spoofing was quickly developing into a major area of consumer 
abuse and criminal fraud. Unfortunately, the Federal Communications 
Commission and the Federal Trade Commission have been slow to act on 
this latest scam. In the meantime, many spoofing companies and the 
fraudsters that use them believe their activities are, in fact, legal. 
Well, it's time to make it crystal clear that spoofing is a scam and is 
not legal.
  How does the bipartisan Truth in Caller I.D. Act of 2009 address the 
problem of caller I.D. spoofing?
  Quite simply, this bill plugs the hole in the current law and 
prohibits fraudsters from using caller identification services to 
transmit misleading or inaccurate caller I.D. information with the 
intend to defraud, cause harm, or wrongfully obtain anything of value. 
This prohibition covers both traditional telephone calls and calls made

[[Page S174]]

using Voice-Over-Internet, VoIP, service.
  Anyone who violates this anti-spoofing law would be subject to a 
penalty of $10,000 per violation or up to one year in jail, as set out 
in the Communications Act. Additionally, this bill empowers States to 
help the Federal Government track down and punish these fraudsters.
  I invite my colleagues to join Senators Snowe, McCaskill, Klobuchar 
and myself in supporting the Truth in Caller I.D. Act of 2009. We 
should not waste any more time in protecting consumers and law 
enforcement authorities against caller I.D. spoofing.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 30

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Truth in Caller ID Act of 
     2009''.

     SEC. 2. PROHIBITION REGARDING MANIPULATION OF CALLER 
                   IDENTIFICATION INFORMATION.

       Section 227 of the Communications Act of 1934 (47 U.S.C. 
     227) is amended--
       (1) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Prohibition on Provision of Inaccurate Caller 
     Identification Information.--
       ``(1) In general.--It shall be unlawful for any person 
     within the United States, in connection with any 
     telecommunications service or IP-enabled voice service, to 
     cause any caller identification service to knowingly transmit 
     misleading or inaccurate caller identification information 
     with the intent to defraud, cause harm, or wrongfully obtain 
     anything of value, unless such transmission is exempted 
     pursuant to paragraph (3)(B).
       ``(2) Protection for blocking caller identification 
     information.--Nothing in this subsection may be construed to 
     prevent or restrict any person from blocking the capability 
     of any caller identification service to transmit caller 
     identification information.
       ``(3) Regulations.--
       ``(A) In general.--Not later than 6 months after the date 
     of enactment of the Truth in Caller ID Act of 2009, the 
     Commission shall prescribe regulations to implement this 
     subsection.
       ``(B) Content of regulations.--
       ``(i) In general.--The regulations required under 
     subparagraph (A) shall include such exemptions from the 
     prohibition under paragraph (1) as the Commission determines 
     is appropriate.
       ``(ii) Specific exemption for law enforcement agencies or 
     court orders.--The regulations required under subparagraph 
     (A) shall exempt from the prohibition under paragraph (1) 
     transmissions in connection with--

       ``(I) any authorized activity of a law enforcement agency; 
     or
       ``(II) a court order that specifically authorizes the use 
     of caller identification manipulation.

       ``(iii) Effect on other laws.--Nothing in this subsection 
     shall be construed to authorize or prohibit any 
     investigative, protective, or intelligence activities 
     performed in connection with official duties and in 
     accordance with all applicable laws, by a law enforcement 
     agency of the United States, a State, or a political 
     subdivision of a State, or by an intelligence agency of the 
     United States.
       ``(4) Report.--Not later than 6 months after the enactment 
     of the Truth in Caller ID Act of 2009, the Commission shall 
     report to Congress whether additional legislation is 
     necessary to prohibit the provision of inaccurate caller 
     identification information in technologies that are successor 
     or replacement technologies to telecommunications service or 
     IP-enabled voice service.
       ``(5) Penalties.--
       ``(A) Civil forfeiture.--
       ``(i) In general.--Any person that is determined by the 
     Commission, in accordance with paragraphs (3) and (4) of 
     section 503(b), to have violated this subsection shall be 
     liable to the United States for a forfeiture penalty. A 
     forfeiture penalty under this paragraph shall be in addition 
     to any other penalty provided for by this Act. The amount of 
     the forfeiture penalty determined under this paragraph shall 
     not exceed $10,000 for each violation, or 3 times that amount 
     for each day of a continuing violation, except that the 
     amount assessed for any continuing violation shall not exceed 
     a total of $1,000,000 for any single act or failure to act.
       ``(ii) Recovery.--Any forfeiture penalty determined under 
     clause (i) shall be recoverable pursuant to section 504(a).
       ``(iii) Procedure.--No forfeiture liability shall be 
     determined under clause (i) against any person unless such 
     person receives the notice required by section 503(b)(3) or 
     section 503(b)(4).
       ``(iv) 2-year statute of limitations.--No forfeiture 
     penalty shall be determined or imposed against any person 
     under clause (i) if the violation charged occurred more than 
     2 years prior to the date of issuance of the required notice 
     or notice or apparent liability.
       ``(B) Criminal fine.--Any person who willfully and 
     knowingly violates this subsection shall upon conviction 
     thereof be fined not more than $10,000 for each violation, or 
     3 times that amount for each day of a continuing violation, 
     in lieu of the fine provided by section 501 for such a 
     violation. This subparagraph does not supersede the 
     provisions of section 501 relating to imprisonment or the 
     imposition of a penalty of both fine and imprisonment.
       ``(6) Enforcement by states.--
       ``(A) In general.--The chief legal officer of a State, or 
     any other State officer authorized by law to bring actions on 
     behalf of the residents of a State, may bring a civil action, 
     as parens patriae, on behalf of the residents of that State 
     in an appropriate district court of the United States to 
     enforce this subsection or to impose the civil penalties for 
     violation of this subsection, whenever the chief legal 
     officer or other State officer has reason to believe that the 
     interests of the residents of the State have been or are 
     being threatened or adversely affected by a violation of this 
     subsection or a regulation under this subsection.
       ``(B) Notice.--The chief legal officer or other State 
     officer shall serve written notice on the Commission of any 
     civil action under subparagraph (A) prior to initiating such 
     civil action. The notice shall include a copy of the 
     complaint to be filed to initiate such civil action, except 
     that if it is not feasible for the State to provide such 
     prior notice, the State shall provide such notice immediately 
     upon instituting such civil action.
       ``(C) Authority to intervene.--Upon receiving the notice 
     required by subparagraph (B), the Commission shall have the 
     right--
       ``(i) to intervene in the action;
       ``(ii) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(iii) to file petitions for appeal.
       ``(D) Construction.--For purposes of bringing any civil 
     action under subparagraph (A), nothing in this paragraph 
     shall prevent the chief legal officer or other State officer 
     from exercising the powers conferred on that officer by the 
     laws of such State to conduct investigations or to administer 
     oaths or affirmations or to compel the attendance of 
     witnesses or the production of documentary and other 
     evidence.
       ``(E) Venue; service or process.--
       ``(i) Venue.--An action brought under subparagraph (A) 
     shall be brought in a district court of the United States 
     that meets applicable requirements relating to venue under 
     section 1391 of title 28, United States Code.
       ``(ii) Service of process.--In an action brought under 
     subparagraph (A)--

       ``(I) process may be served without regard to the 
     territorial limits of the district or of the State in which 
     the action is instituted; and
       ``(II) a person who participated in an alleged violation 
     that is being litigated in the civil action may be joined in 
     the civil action without regard to the residence of the 
     person.

       ``(7) Definitions.--For purposes of this subsection:
       ``(A) Caller identification information.--The term `caller 
     identification information' means information provided by a 
     caller identification service regarding the telephone number 
     of, or other information regarding the origination of, a call 
     made using a telecommunications service or IP-enabled voice 
     service.
       ``(B) Caller identification service.--The term `caller 
     identification service' means any service or device designed 
     to provide the user of the service or device with the 
     telephone number of, or other information regarding the 
     origination of, a call made using a telecommunications 
     service or IP-enabled voice service. Such term includes 
     automatic number identification services.
       ``(C) IP-enabled voice service.--The term `IP-enabled voice 
     service' has the meaning given that term by section 9.3 of 
     the Commission's regulations (47 C.F.R. 9.3), as those 
     regulations may be amended by the Commission from time to 
     time.
       ``(8) Limitation.--Notwithstanding any other provision of 
     this section, subsection (f) shall not apply to this 
     subsection or to the regulations under this subsection.''.
                                 ______