2026-10407Proposed RuleWallet

FCC Wants Phone Companies to Verify Every Customer

Published Date: 5/26/2026

Proposed Rule

Summary

The FCC wants to make sure phone companies know exactly who their customers are to stop scammers from making illegal calls. They’re proposing tougher rules for checking and keeping customer info, especially for big users, and plan to fine companies for each bad call. Comments on these ideas are open until June 25, 2026, so changes could roll out soon and help protect your phone line.

Analyzed Economic Effects

10 provisions identified: 1 benefits, 4 costs, 5 mixed.

Per-Call $2,500 Penalty Proposed

The FCC proposes to codify a base forfeiture amount of $2,500 per illegal call for violations of the KYC rule (Sec. 64.1200(n)(4)). The proposal would calculate penalties by the number of unlawful calls rather than on a per-customer basis.

Mandatory KYC Data Collection

The FCC proposes requiring originating providers to obtain and retain a customer's name, physical address, government-issued identification number, and an alternate telephone number from new and renewing customers before granting service. The proposal is meant to stop scammers from getting onto telephone networks and would expand what personal information providers must keep on file.

Extra Data for High-Volume Callers

For high-volume customers (including business and foreign customers), the FCC seeks to require originating providers to collect additional information such as the customer's intended use of the service (for example, marketing or political campaigns) and the IP address from which each call will be placed. These extra data requirements would apply before such customers get access to origination services.

Verification and Supporting Records Required

The FCC proposes requiring originating providers to verify customer identity with supporting records such as copies of government-issued IDs for individuals and corporate formation records, proof of good standing, or an Employer Identification Number (EIN) for high-volume business accounts. The FCC also seeks comment on re-verification when red flags appear and on periodic re-verification (for example, annually).

Four-Year KYC Record Retention

The FCC proposes that originating providers retain KYC information and supporting records for four years following termination of the customer relationship, aligning with the four-year statute of limitations for spoofing or intentional violations of section 227(b).

Risk-Tiered KYC for High-Risk Callers

The FCC seeks comment on a tiered, risk-based approach that would impose more stringent KYC on higher-risk customers—such as callers using specific dialing equipment, foreign-based callers, or callers above a high-volume threshold—and whether measures like requiring an EIN for high-volume accounts should apply.

Prepaid SIM and SIM-Box Concerns

The FCC is considering whether KYC requirements should differ for prepaid versus postpaid services, and how to address bulk purchases of SIM cards or SIM-box use that can enable fraudulent SMS or voice traffic. If applied, prepaid purchasers (including retail third-party purchases) could face new identity checks.

Downstream Blocking for Noncompliance

The FCC seeks comment on whether downstream providers should be required to block traffic from any originating provider that fails to comply with KYC requirements—potentially extending blocking beyond the immediate downstream provider. This would increase isolation of noncompliant providers but could disrupt legitimate traffic from providers judged noncompliant.

Possible Safe Harbor for Accredited KYC

The FCC is considering whether compliance with enhanced KYC obligations, use of an accredited third party to verify identity, or the use of effective AI/automated systems should create a regulatory safe harbor from enforcement actions. Such a safe harbor would reduce enforcement risk for providers that follow those methods.

Implementation Timing and Scope

The FCC asks whether any new KYC rules should apply primarily to customers acquired after the effective date or to renewing customers, and whether rules should take effect six months after OMB approval of any Paperwork Reduction Act requirements. These timing choices would affect when providers and customers must comply.

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Key Dates

Published Date
Effective Date
Comments Due
5/26/2026
6/25/2026
7/27/2026

Department and Agencies

Department
Independent Agency
Agency
Federal Communications Commission
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