A robocall is an automated phone call containing a recorded message transmitted automatically to multiple phone numbers through auto-dialer software. It can be used for telemarketing campaigns and announcements like flight cancellations or appointment reminders. However, they have become easily exploitable by spammers trying to sell something illegal. Read further to understand what robocalls are, how they impact your business, and ways to avoid them.
How Robocalls Work
So, how do robocalls work? First, there’s no clear definition of what a robocall is, but note that not all robocalls are inherently illegal. A robocall is considered lawful if the consumer provides a company with written permission to call them that way. An illegal robocall is deployed if the calling party’s phone number is altered electronically with the purpose of convincing the caller to disclose personal or payment information over the phone.
Robocalls are set up using outbound dialing systems to make a large number of calls and transmit prerecorded messages in a short period. To get these phone numbers, most companies use lead lists, search through public records, or purchase from brokers selling phone numbers.
Many illegal robocallers pay a small phone company to place the calls into their phone network. From there, the phone company uses an automated system to contact each number on the lead list. To encourage callers to answer the call, robocallers use a tactic called “caller ID spoofing” to alter caller ID information and use local area codes to target specific regions.
Aside from a robo-dialer, spammers use voice broadcasting to deliver recorded messages to several numbers at the same time. Today, robocalling has become more sophisticated as it can generate millions of calls in an hour due to emerging technologies, making it a challenge for regulators to track down scammers.
Types of Robocalls & Their Warning Signs
According to the Federal Communications Commission (FCC), the top robocall complaints include auto warranty, credit card, and insurance. Learning the different types of robocalls is one way to protect your business from various threats. To help you recognize the warning signs, below we listed the types of illegal robocalls you might receive.
Nature of Robocall | Warning Signs |
|---|---|
Credit Card | A bank or credit card company requests your account information to sign you up for a new card or warn you that your account has been breached. |
Internal Revenue Service (IRS) | A person pretending to work at a government agency requires you to pay your tax at an anonymous account number or ask for financial information. |
Tech Support | Scammers pretend to be computer technicians from a popular tech company and claim there’s an issue with your device or software. They may ask you to pay for tech support service or download an unknown app that can be used to infiltrate your company’s network. |
Debt Collection | Fake creditors or debt collectors use aggressive tactics like intimidation to collect an overdue payment. Although legitimate debt collectors can make robocalls, debtors have the option to opt out of these calls. |
Google SEO Service | This robocall type primarily targets small businesses. A person claiming to work for Google tells you that your listing is about to disappear unless you provide additional information or pay for SEO services so it stays on the site. |
Telemarketing | Although telemarketing calls exist, scammers pretend to be legitimate telemarketers and sell fake products or services to get the victim’s money. |
Local Map Verification | You are asked to confirm your business location to update the online map. Although it may seem harmless, the caller may trick you into providing sensitive information for fraudulent purposes. |
Loan Scams | Target people needing financial assistance or with poor credit history. You may receive a call from a financial company offering a low-interest loan or credit card in exchange for personal information or an upfront fee. |
Insurance | A fake insurance firm offers to switch over to their plan to better accommodate your needs and budget. In exchange, you need to provide personal information. |
Free Trial | You get a call promoting a free trial of a product or service while asking for your credit card to cover the shipping or handling fee. Once the payment is made, your account is charged without receiving anything of value in return. |
Charity Donations | While some charity calls are legal, some may piggyback off on popular charity organizations and national disasters to attract donors. They may cause you to feel a great deal of pity for their cause, prompting you to provide your credit card details to donate. |
Auto Warranty | This is one of the most common robocall scams in the U.S. that targets car owners. A scammer will make you think you need to extend your auto warranty, which can only be availed by providing your payment details. |
Understanding STIR/SHAKEN (How It’s Affecting Robocalls)
Based on recent robocall statistics, a robocall-blocking app found a downward trend in the number of scam calls in 2022. This is partly because of the FCC’s implementation of a robocall defense standard called STIR/SHAKEN.
Secure Telephony Identity Revisited and Secure Handling of Asserted Information Using Tokens, also known as STIR/SHAKEN, is a critical framework to address caller ID spoofing. It is a set of protocols and procedures that help phone networks and voice-over-internet-protocol (VoIP) phone systems to verify caller ID information. The process itself is a bit complicated, but it relies on digital signatures to verify if the caller is exactly who they are.
In a STIR/SHAKEN process, the originating VoIP provider checks the phone number and source to determine the right attestation level of the caller. Here are the following attestation levels to identify the validity of a calling number:
- Full attestation (Level A): The service provider fully authorizes the caller to use the number.
- Partial attestation (Level B): The service provider can verify the source of the call but cannot confirm if the caller is authorized to make calls from that number.
- Gateway attestation (Level C): The service provider authenticates where the call was received from but cannot verify the originating point.
While the number of robocalls signed with STIR/SHAKEN authentication remains high, experts found calls signed with Level C were over five times more likely to be robocalls. This trend shows that although STIR/SHAKEN protocols offer an additional layer of protection to businesses, it is still necessary to implement the right measures to avoid falling into the traps of robocall scammers.
Tips on How to Avoid Robocalls
Although robocalls have continued to decline slightly over the past years, the government’s mitigation measures can only do as much. Robocalls aren’t just going to magically go away, which means businesses must continue protecting themselves from these scams. Learn the steps you can take to eliminate these unwanted calls:
- Download a robocall blocker app: Installing a call blocker app is your best defense against robocalls due to its spam-blocking measures. These apps use a massive contact database that allows them to differentiate a real caller from a scammer.
- Identify the warning signs: Robocallers use various tactics to get hold of your information. These include intimidation, the use of trusted names/organizations, the illusion of scarcity, and time-sensitive prompts. If you get a call that displays all these signs, end the call right away.
- Verify the caller and perform due diligence: Do not judge a caller by its caller ID alone. If the caller claims to represent a company or government agency, hang up and look up the real phone number of that entity and then call them to inquire if it contacted you.
- Sign up for the Do Not Call (DNC) registry: Registering your number at the DNC registry will opt you out of receiving robocalls from telemarketers. However, it only applies to companies that follow the law and doesn’t include scammers.
- Report robocalls: If you’re a frequent receiver of robocalls, reach out to your phone service provider and give all the details about the contact. The Federal Trade Commission (FTC) also encourages consumers to report unwanted callers at their website donotcall.gov.
- Activate call blocking: Spam-blocking options often come free with mobile carriers and VoIP services. For example, call screening includes caller ID, do-not-disturb (DND), and call blocking—features that help filter unwanted calls.
- Avoid giving out your phone number: If you have ever wondered why you’re suddenly receiving robocalls, this is because you may have posted your phone number online. If you’re going to share your contact information, make sure it is a trusted entity.
- Choose a reliable VoIP provider: Modern VoIP providers are equipped with robust network security tools to eliminate cybercrime risks. RingCentral, one of the leading business phone systems, has strengthened its capability to detect incoming calls as suspected robocalls.
RingCentral lets you avoid incoming calls and text messages from a specific number. (Source: RingCentral)
Frequently Asked Questions (FAQs)
Hang up the call and never press any button or provide personal information. Also, do not reply with “yes” if the caller prompts you with a yes-no question at the beginning of the call because they may use your voice information for fraudulent activities.
Robocalls are programmed to play a prerecorded voice message without interacting with the receiving party. Spam calls, on the other hand, are unsolicited calls for marketing or advertising a particular product or service.
There are several reasons you’ve been getting a lot of robocalls. One potential cause is that you accidentally answered a robocall in the past, alerting scammers that your phone number is active. Another reason is your phone number may have been posted on your social media account or submitted to a company or website. Once your number is publicly available, data brokers will sell it to scammers.
Bottom Line
New technology has made it cheap and easy for scammers to use robocalls for fraudulent activities. While you cannot block unwanted calls altogether, a few simple precautions can protect your business from all sorts of robocall scams.
Now that you know what robocalls are, use a security-driven VoIP provider like RingCentral, which uses advanced tools to prevent robocalls from entering your phone line. Sign up for a 14-day free trial to test its call blocking capabilities.
