On Wednesday, the Federal Communications Commission (FCC) revealed that Lingo Telecom will pay a $1 million penalty for transmitting fraudulent robocalls. These calls, which mimicked President Biden’s voice using advanced AI technology, aimed to dissuade voters from supporting him in the New Hampshire primary.
Political consultant Steve Kramer orchestrated the robocall scheme. He used sophisticated AI voice-cloning technology to produce calls that sounded like Biden, falsely urging voters not to cast their ballots for him. The deception led to a state investigation in New Hampshire, and Kramer now faces legal charges.
Kramer’s Role in the Controversy
The incident traces back to Steve Kramer, hired by Dean Phillips’ presidential campaign. Phillips, a Minnesota congressman, challenged Biden for the Democratic nomination but did not succeed. Kramer, using AI technology, created robocalls designed to confuse and deter Biden’s supporters in New Hampshire.
The calls surfaced in January, causing backlash. Phillips quickly distanced himself from the scheme, stating Kramer acted without authorization. Despite Phillips’ denouncement, the FCC’s intervention was necessary to address the breach of trust.
FCC’s Action Against Lingo Telecom
Although Lingo Telecom did not produce the robocalls, it allowed their transmission through its network, violating FCC regulations. The agency’s “Know Your Customer” (KYC) and “Know Your Upstream Provider” (KYUP) rules require telecom companies to verify their customers’ identities and business practices.
Initially, the FCC proposed a $2 million fine against Lingo. However, a settlement reduced the penalty to $1 million. Lingo must now adhere to stricter compliance measures, including implementing robust caller ID authentication procedures.
“This settlement emphasizes that communications providers are crucial in safeguarding against such threats and must ensure they protect the public,” said FCC Enforcement Bureau Chief Loyaan Egal.
Legal Consequences for Steve Kramer
Steve Kramer faces severe legal repercussions for his role in the robocall scandal. After the calls were exposed, Kramer admitted to spending $500 on the scheme, claiming it was meant to highlight issues in the New Hampshire primary. However, his actions have led to charges and a proposed $6 million fine from the FCC.
Despite Kramer’s efforts, the calls had little effect on the election results. Biden secured nearly 64% of the vote in New Hampshire, while Phillips received under 20%. The scheme’s failure and ensuing legal consequences highlight the risks of using deceptive tactics in political campaigns.
Impact of AI on Political Campaigns
The misuse of AI in political campaigns has raised significant concerns. The FCC’s response to the Lingo Telecom case reflects growing apprehension about AI’s potential to deceive voters. FCC Chairwoman Jessica Rosenworcel stressed the need for transparency when AI is used in communications.
“Voters must be assured that the voice they hear is genuinely who it claims to be,” Rosenworcel stated. “The FCC is committed to addressing issues that undermine trust in our communications systems.”
In response to these concerns, the FCC has proposed new rules for political ads on broadcast media, requiring disclosures about AI-generated content. However, these rules will not extend to internet or social media ads, where similar issues persist.
Lingo Telecom’s Future Compliance
Under its settlement with the FCC, Lingo Telecom will implement several measures to improve its network security. The company will only apply the highest trust level, A-level attestation, to calls where it provides the caller ID number. It will also verify the identity of its customers and upstream providers through independent records and ensure traffic comes only from providers with effective robocall mitigation strategies.
While this case was a domestic issue, the FCC has noted the broader risks posed by AI and caller ID spoofing, including potential threats from foreign actors.
“This settlement sends a strong message that communications providers must be vigilant against both domestic and international threats,” Egal added.
