Telecom Entity Faces $1M Penal Fine For Involvement In Biden Deepfake Scam

The US Federal Communications Commission (FCC) has penalized Texas-based telecommunication firm Lingo Telecom with a $1 million fine.

The penalty is linked to the company's involvement in Biden's deepfake scam, allegedly aimed to discourage the public from participating in the New Hampshire primary election.

The Biden deepfake scam uses AI-generated audio of President Biden's voice to disseminate recordings through robocalls.

Lingo Telecom To Pay $1 Million For Its Role In Biden's Deepfake Scam

According to a press release, the FCC imposed a $1 million fine on Lingo Telecom, a Texa-based telecommunication firm. The sanction is due to the telecom entity's role in President Joe Biden-related deepfake scam.

Biden's deepfake scam involves using AI-based recordings to make calls that mimic Biden's voice. The calls focused on discouraging people's participation in the New Hampshire primary election.

In addition to the monetary fine, the agency ordered Lingo to implement a historic compliance plan and authentication rules.

According to the communications regulator, the telecom firm will maintain the agency's caller ID authentication rules. Following the rules will prevent similar transmissions of fraudulent calls and deceptive content.

Further, the FCC also mandated Lingo to comply with the Know Your Customer" and Know Your Upstream Provider" rules. These principles are crucial in telecommunications as they allow users to monitor their call traffic effectively and authenticate all calls for enhanced safety.

Additionally, the regulator noted that the sanction goes beyond serving as a disciplinary action against the telecom company. It reflects part of the steps to ensure that telecommunications entities remain accountable for any content they disseminate. The FCC Chair, Jessica Rosenworcel, highlighted the need for transparency in communication.

The executive stated: Every one of us deserves to know that the voice on the line is exactly who they claim to be. If AI is being used, that should be made clear to any consumer, citizen, and voter who encounters it."

The deepfake scam began when Steve Kramer, a political consultant, initiated the design and dissemination of deepfake robocalls. Kramer worked for Dean Phillips, Biden's opponent in the primary election during the period.

Moreover, Kramer has been indicted on criminal charges in four New Hampshire counties. The charges include 13 felony counts of voter suppression and 13 misdemeanor counts of impersonation. The FCC also proposed a $6 million fine for Kramer for orchestrating the scam.

US Concerns Over The Growing Use of AI-generated Content

The FCC's recent penalty on Lingo Telecom comes amid the US moves to regulate AI technology and content.

In February, the agency banned using AI-generated recordings in robocalls without the receivers' consent. The regulator also proposed new regulations on political advertisers, mandating full disclosure for using AI-generated content via TV and radio adverts.

Moreover, 20 giant AI and tech companies agreed to fight against deceptive AI usage in the US elections. The firms agreed to work together to identify and counter harmful AI content on their software.

These entities include Google, Adobe, Meta, X, Microsoft, Amazon, OpenAI, IBM, TikTok, etc.

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