State Bankers Associations Push FCC Action on Illegal Texts

Dear Chairwoman Rosenworcel,

The undersigned 52 state bankers associations, which represent banks across our nation, write to urge the Federal Communications Commission to take action to combat illegal text messages and calls by adopting the Report and Order (Order) that was scheduled to be considered during the Commission’s Open Meeting on September 26, 2024, but was removed from the Meeting’s agenda two days before the Meeting.

Criminals are increasingly sending text messages to consumers that impersonate banks with the intent to defraud the consumer. These illegal texts harm consumers and undermine the ability of banks to communicate with their customers. The criminal may send the text to induce the consumer to reveal log-in or other account information or to click on a link that installs malware on the consumer’s phone (“smishing” messages). Texts that impersonate a bank were the most common form of text message scam reported to the Federal Trade Commission (FTC) in 2022. The scam’s median reported loss was $3,000 in 2022, accounting for $330 million in aggregate reported losses that year, according to the FTC.

The draft Order would take important steps to combat illegal text messages and calls. The Order would require mobile wireless providers to offer “email-to-text” as an opt-in service. Criminals are able to send large numbers of smishing text messages quickly by inserting multiple phone numbers into the “to” field of an email, which then converts the email to a short messaging service (SMS) text message. The draft Order would require mobile wireless providers to offer email-to-text as an opt-in service, so consumers will receive these text messages only if they have affirmatively chosen to do so. We expect this will lead to a significant reduction in the number of consumers who receive email-to-text messages and to a commensurate reduction in the amount of fraud that is facilitated by this form of communication.

The draft Order also would require mobile wireless providers that originate text messages to block all texts from a particular source when notified by the Commission of illegal texts from that source, unless the provider, after investigating, determines that the texts are not illegal, or has reasonable belief that either the source is no longer originating illegal texts or that particular texts from that source are lawful. Existing rules require terminating providers – but not originating providers – to block all texts from a particular number when notified by the Commission of illegal texts from that number. But criminals frequently use multiple numbers from which to originate texts. Unlike terminating providers, originating providers have visibility into all text messages that a particular source is sending – not solely text messages from a particular number. The originating provider thus is well positioned to stop illegal texts at their source. 

In addition, the draft Order would take steps to combat illegal calls. Specifically, the Order would require all voice service providers in the call path to block calls that are highly likely to be illegal, based on a reasonable “do not originate” (DNO) list – i.e., a list of numbers highly likely to be illegal, such as calls from invalid, unallocated, or unused numbers. Existing rules require only “gateway” providers (those provides who transmit traffic that originated from a foreign jurisdiction) to block calls based on a reasonable DNO list.

The Order also would require intermediate and terminating providers to block calls upon notification that the Commission has identified suspected illegal traffic. Existing rules require only originating providers and gateway providers to block illegal traffic when notified by the Commission.

Banks are committed to stopping criminals who seek to defraud their customers, but banks cannot achieve this goal alone. We urge the Commission to combat illegal texts and calls by adopting the Order without delay. 

Download the joint letter to read the full text.