NOTE: Had AI look into why THIS HAPPENED. It’s eye opening how smart & creative people get that tell you they run “inbounds on Facebook Ads” 😂😂😂😂 Takeaway, take everything you hear with a grain of salt, chances are the bros with the lambos aren’t doing what you are being told to do.
The 185 telecom providers shut down by the FCC weren’t just failing to file paperwork—they were the backbone infrastructure for massive illegal operations that bilked consumers out of hundreds of millions of dollars. Here are the actual hustles and scams that were running through these providers.
Major Documented Scams
1. Insurance Lead Generation Racket – $145 Million in Fines
The Players: Assurance IQ ($100M fine) and MediaAlpha ($45M fine)
The Hustle:
•Fake Government Websites: Created sites like “ObamacarePlans.com” and “GovernmentHealthInsurance.com” to appear official
•Actor Impersonation: Hired actors and doctors to promote fake “Health Insurance Give Back Program”
•Data Harvesting Operation: Collected 119 million consumer leads in 2024 alone
•Robocall Bombardment: Used telecom providers to blast millions of calls selling fake insurance
•ACA Fraud: Falsely claimed junk insurance plans were ACA-compliant
•Billing Without Consent: Charged consumers’ credit cards without permission
How They Used Telecom Providers:
•Massive robocall campaigns reaching millions daily
•Used multiple telecom gateways to avoid detection
•Violated Do Not Call Registry through various routing methods
•Made calls appear to come from legitimate insurance companies
Real Victim Impact: Consumers paid for worthless insurance thinking they had comprehensive coverage, only to discover they had no real protection when they needed medical care.
2. Auto Warranty Scam Empire – $300 Million FCC Fine
The Scale: Nearly 1 billion robocalls in June 2022 alone
The Hustle:
•Fake Urgency: “Your auto warranty is about to expire” calls
•Data Mining: Had specific information about victims’ cars and existing warranties
•Impersonation: Posed as car dealers, manufacturers, and insurers
•Worthless Products: Sold extended warranties that covered almost nothing
•Rebate Lies: Promised “$1,000 instant rebates” that never materialized
Real Example Script: “Hi there, this is Jessica calling in regards to your Volkswagen warranty. The warranty is up for renewal. I’d like to congratulate you on your $1,000 instant rebate and free maintenance and oil change package for being a loyal customer.”
How They Exploited Telecom Providers:
•Used automated dialing systems making thousands of calls per second
•Caller ID spoofing to appear as local or legitimate numbers
•Rotated through multiple telecom providers when one got shut down
•International call routing to avoid U.S. regulations
3. Debt Relief Destruction Scheme – $100 Million Operation
The Target: Seniors and veterans specifically
The Hustle:
•Government Impersonation: Posed as federal agencies, banks, and credit bureaus
•False Promises: Claimed they could reduce debt by 75% or more
•Advance Fee Scam: Collected up to $10,000 upfront before providing any service
•Credit Sabotage: Told victims to stop paying credit cards, destroying their credit
•Veteran Targeting: Specifically went after military veterans with security clearances
Real Victim Stories:
•Army Veteran: Credit score dropped from 700s to 500s, nearly lost security clearance, ended up $13,000 deeper in debt
•Disabled Veteran: Forced to drain savings and retirement funds, lost nearly $10,000 in fees
Telecom Provider Exploitation:
•Massive telemarketing campaigns targeting elderly demographics
•Used multiple providers to call people on Do Not Call Registry
•Spoofed caller IDs to appear as government agencies
•International call routing to hide true origins
Additional Common Hustles Using These Providers
4. Medicare Advantage Scams
The Hustle:
•Called seniors claiming to be from Medicare
•Offered “free” medical equipment or “enhanced benefits”
•Collected Medicare numbers and personal information
•Signed victims up for plans they didn’t want
•Billed Medicare for services never provided
Telecom Tactics:
•Targeted calling during Medicare open enrollment periods
•Used local area codes to appear trustworthy
•High-volume automated dialing systems
5. Solar Panel Sales Scams
The Hustle:
•Claimed government rebates were “ending soon”
•Promised “free” solar installations
•Used high-pressure sales tactics
•Installed substandard or overpriced systems
•Left homeowners with liens and debt
Provider Exploitation:
•Robocalled homeowners in specific ZIP codes
•Used property records to target high-value homes
•Spoofed utility company numbers
6. Student Loan Forgiveness Scams
The Hustle:
•Claimed to be from Department of Education
•Promised immediate loan forgiveness
•Collected Social Security numbers and loan information
•Charged upfront fees for “processing”
•Never provided any actual loan relief
Telecom Methods:
•Targeted recent graduates and current students
•Used .gov-sounding caller IDs
•Mass robocalling campaigns
7. Charity Scams
The Hustle:
•Impersonated legitimate charities
•Created fake charities with similar names to real ones
•Targeted disaster victims and veterans
•Kept 90%+ of donations for “administrative costs”
•Used emotional manipulation tactics
Provider Usage:
•Timed calls around natural disasters and holidays
•Used local numbers to appear community-based
•High-volume calling during giving seasons
8. Tech Support Scams
The Hustle:
•Called claiming to be from Microsoft, Apple, or other tech companies
•Said victim’s computer was “infected” or “compromised”
•Demanded remote access to “fix” the problem
•Installed malware or held files for ransom
•Charged hundreds for fake “repairs”
Telecom Exploitation:
•Spoofed legitimate tech company numbers
•Used automated systems to detect when people answered
•International call routing to avoid prosecution
9. Timeshare Exit Scams
The Hustle:
•Targeted timeshare owners wanting to get out of contracts
•Promised guaranteed exits for upfront fees
•Collected thousands in advance payments
•Never actually canceled any timeshares
•Left victims stuck with both timeshare and scam debts
Provider Methods:
•Purchased lists of timeshare owners
•Used high-pressure sales tactics
•Multiple callback campaigns
10. Cryptocurrency Investment Scams
The Hustle:
•Promised guaranteed returns on crypto investments
•Used fake celebrity endorsements
•Created fake trading platforms
•Stole investors’ money and personal information
•Disappeared when victims tried to withdraw funds
Telecom Tactics:
•Targeted older adults unfamiliar with crypto
•Used sophisticated-sounding financial jargon
•Follow-up calls to pressure larger investments
How These Providers Enabled the Scams
Technical Infrastructure
•High-Volume Capacity: Could handle thousands of calls per second
•Caller ID Spoofing: Made calls appear to come from legitimate sources
•International Routing: Hid the true origin of calls
•Automated Systems: Enabled mass robocalling operations
Regulatory Evasion
•Provider Shopping: Scammers moved between providers when one got shut down
•Shell Companies: Used multiple business entities to hide operations
•Compliance Failures: Providers didn’t properly vet their customers
•Documentation Gaps: Failed to maintain proper records of call traffic
Financial Facilitation
•Payment Processing: Some providers helped process payments from victims
•Revenue Sharing: Took percentages of scam proceeds
•Billing Services: Provided merchant accounts for fraudulent charges
•Money Laundering: Helped move illegal proceeds through legitimate channels
The Real Impact
Financial Damage
•Insurance Scams: $145 million in documented losses
•Auto Warranty Scams: $300 million in fines (actual losses much higher)
•Debt Relief Scams: $100 million stolen from vulnerable seniors and veterans
•Total Estimated Losses: Billions of dollars annually across all scam types
Personal Destruction
•Credit Scores Destroyed: Victims’ credit ratings ruined for years
•Security Clearances Lost: Military personnel lost jobs due to financial problems
•Retirement Funds Drained: Seniors forced to use life savings to recover
•Medical Coverage Lost: People thought they had insurance when they didn’t
Societal Impact
•Trust Erosion: People stopped answering legitimate calls
•Healthcare Delays: Victims avoided medical care thinking they weren’t covered
•Economic Productivity Loss: Time and resources wasted dealing with scam aftermath
•Mental Health Impact: Stress, anxiety, and depression from being victimized
Why the FCC Finally Acted
The 185 telecom providers weren’t just passively enabling these scams—many were active participants in the criminal enterprises. They:
1.Knew their traffic was suspicious (10,000 calls per second with short durations)
2.Failed to implement required safeguards (STIR/SHAKEN, robocall mitigation)
3.Ignored compliance requirements (filing deadlines, fee payments)
4.Facilitated criminal activity (provided infrastructure for illegal operations)
5.Profited from illegal traffic (took percentages of scam revenues)
The FCC’s unprecedented action wasn’t just about paperwork violations—it was about shutting down the infrastructure that enabled billions of dollars in consumer fraud. These providers were the digital highways that scammers used to reach their victims, and the FCC finally decided to close those highways permanently.