In 2002, telecommunication companies like MCI and AT&T offered free calls to the hearing impaired via internet web pages. The deaf customers will type their messages into dialog boxes similar to online chat rooms.
A relay operator will then read the text, place the call, and they will verbalize the text. The entire system, called IP Relay, is created to assist deaf customers and help them communicate and make important phone calls.
Unfortunately, scammers found a way to abuse that system and use it to cheat American business owners.
Scammers Target Phone Service for the Deaf
According to Reuters, the US Department of Justice claimed that AT&T pocketed millions of dollars in reimbursement fees by deliberately ignoring fraudulent use of the IP Relay call system.
The IP Relay call service is intended for those with hearing or speech impairments, but people without impairments can still use it.
Since its release in the early 2000s, relay operators reported that they received hundreds of prank calls via the IP Relay system, and each call had cost the US taxpayers $1.30 per minute.
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The Federal Communications Commission or the FCC reimbursed the money back to the telephone company in charge of setting up the service.
The only time the FCC would not reimburse the money was if people made the calls outside of the United States or if they were from people who do not have hearing or speech impairments.
In 2009, the FCC began requiring telephone companies to verify the person using the IP Relay call system. A qualified customer must be in the United States and suffering from a hearing or speech impairment.
In 2012, the Justice Department claimed that AT&T ignored fraudulent use of the system. The Justice Department also revealed that 95% of AT&T's total IP Relay call volume was from scammers outside the US, and thousands of the calls were from Nigeria.
David J. Hickton, the US Attorney for the Western District of Pennsylvania, said in a statement that taxpayers should not shoulder the cost of abuses of the Telecommunications Relay system, and those who misused the funds intended for the system must be held accountable.
AT&T has disputed the claims of the Justice Department. A spokesperson for the company told Ars Technica said that there is always a possibility of the IP Relay services being abused, just like how the other systems like postal and emails are abused.
The spokesperson added that they are conducting their own investigation to make sure that their customers are hearing impaired.
Why are Scammers Using the IP Relay System?
NBC News reported that the IP Relay system is the perfect tool for scammers. The service is available 24/7, so those outside the US don't have to worry about time zones.
And since it is free, people from far away places like Nigeria can use the service without having to worry about bills.
Plus, it masks their broken English, making it easier for them to scam American merchants as they can pass off as someone from the US.
In 2019, 43 million Americans were scammed by fake international calls.
In 2021, Nigerian scammers were arrested for targeting American women on dating sites.
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Written by Sophie Webster
