Here's how robocallers use the house next door to get to your phone
When you receive a robocall, chances are someone like Nick Palumbo collects roughly $0.0024 a minute. Those fractions of a cent can add up to millions of dollars. Mr. Palumbo accumulated more than $3.2 million on the hundreds of millions of calls routed through a telecom operation based in his Paradise Valley, Ariz., home last year.that serve as key conduits in America’s telecom system.
In the span of a few years, one of Mr. Palumbo’s carriers became the largest conduit for Social Security impostor calls coming into the U.S. from overseas, according to authorities. It connected swindlers posing as officials from the Social Security Administration with victims who relinquished their money or personal information.in total bilked U.S. consumers out of at least $38 million in 2019, according to Federal Trade Commission data and government officials.
More government impostor robocalls were traced to Mr. Palumbo’s carriers than any other phone company for much of 2019 and the early months of 2020, according to USTelecom, a trade group that runs a call-tracing system. He says he didn’t know the calls were scams when his companies passed them along. On March 24 a federal judge temporarily barred Mr. Palumbo’s phone operations from carrying any more calls in the U.S. following a civil lawsuit from the Justice Department.
Mr. Palumbo and dozens of other little-known telecom carriers work in the shadows of giants such as AT&T Inc., routing phone calls in bulk from one part of the telephone network to another and charging customers a fraction of a cent each time. These small carriers took hold in the decades following the 1984 breakup of AT&T’s phone system monopoly, which was designed to lower the costs of long-distance calls.
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