Truth in Caller ID Act of 2009 and Cell Phone Pinging

What You Need to Know

Presented by Paul Kulas of Belles Camp Communications

Paul Kulas

Owner and Head Bell Ringer Belles Camp CommunicationsEagle, Colo.

paul@bellescamp.com

970.328.0400

Changing How Skip Tracing Is Done

• 23 years providing services for skip tracing– First “trap line”– Blind line– Calling cards

• Founded SkipTracy in 2002– New techniques for skip tracing:

• Unique caller ID for each phone call (aka, caller ID spoofing)• Programs

• BellesLink – July 2013 – First service for skip tracing to combine:

• Compliance• Communications• Case management

Truth in Caller ID Act of 2009 and Cell Phone Pinging – What You Need to Know

Compliant and Effective Skip Tracing Techniques

Today’s Presentation

Truth in Caller ID Act of 2009and Cell Phone Pinging

• Truth in Caller ID Act of 2009– Definitions– Why the law applies to bail bonds– Common misunderstandings– The risks of interpretation

• Cell Phone Pinging– What’s compliant– What’s not compliant– Applicable laws that cover cell phone location information and privacy– The cost of noncompliance in your industry

What We Will Cover

Compliant and Effective Skip Tracing Techniques

• Compliant and Effective Skip Tracing Techniques – What works

– What doesn’t work

• Summary

What We Will Cover

A Special Resource for You

• 2014 PBUS Winter Conference– A Magic Skip Tracing Button Doesn’t Exist

Presented exclusively for the 2014 PBUS Winter Conference

– Slide deck from this presentation

– Links to related blog posts

info.belleslink.com/pbus2014

Two Laws Can’t Be Fully Explained in One Presentation

• Both laws are technical.

• I’ll cover the key points.

• Call or email anytime, or see me afterward.– paul@bellescamp.com

– 970.328.0400

• See the BellesLink Learn Skip Tracing blog.– Detailed content covering this and much more

– www.belleslink.com

Truth in Caller ID Act of 2009What You Need to Know

Truth in Caller ID Act of 2009

Signed into law on Dec. 22, 2010

“(1) IN GENERAL - It shall be unlawful for any person within the United States, in connection with any telecommunications service or IP-enabled voice service, to cause any caller identification service to knowingly transmit misleading or inaccurate caller identification information with the intent to defraud, cause harm or wrongfully obtain anything of value, unless such transmission is exempted pursuant to paragraph (3)(B).”

(3)(B) exemption is available only to law enforcement agencies or anyone else that gets a court order specifically authorizing caller ID spoofing — for example, a battered women’s shelter might seek such an order.

www.govtrack.us/congress/bills/111/s30/text

Caller Identification Information Defined

Section 8 in the law defines “caller identification information.”

“(A) CALLER IDENTIFICATION INFORMATION - The term ‘caller identification information’ means information provided by a caller identification service regarding the telephone number of, or other information regarding the origination of, a call made using a telecommunications service or IP-enabled voice service.”

Caller Identification Information Defined

• Caller identification service

– Whatever service (device or software) is used to place the call

• Telephone number of

– What’s displayed on the caller ID

• Origination of

– The party that owns the number displayed on the caller ID and/or where the call originated (your phone, your phone number, your hotel room, your office, etc.)

The Law in General

“It shall be unlawful for any person within the United States, in connection with any telecommunications service or IP-enabled voice service, to cause any caller identification service to knowingly transmit misleading or inaccurate caller identification information … ”

If you placed a call that showed as coming from the subject’s mom’s house, is that “misleading”?

The Law in General

• “With the intent to … ”

– “Defraud, cause harm or wrongfully obtain anything of value.”

• “Defraud”

– Means to cause financial loss to another to bring financial gain to oneself. The definition also includes obtaining any thing, right or interest.

The Law in General

• “Cause harm”

– This doesn’t have to be physical. You can frighten someone and thereby cause emotional harm or mental duress. Any legal definition of “harm” would violate the law.

• “Or wrongfully obtain anything of value”

– An address, location, whereabouts or any other information via misleading or inaccurate caller identification information = wrongfully.

– Does it have “value”?

• If the nonpublished address obtained was paid for = yes.

• If the person “values” what he or she told you = yes.

• If the person “values” privacy = yes.

Common Misunderstandings

1. You’re in California.

2. You call a skip using a BellesLink number; the caller ID displays a New York 212 area code.

Is it spoofing?

• No

– You lease the number from BellesLink = “telephone number of.”

– You can be reached at the number = “origination of.”

Common Misunderstandings

1. You call a skip.

2. The caller ID displays the local pizza place, a girlfriend or boyfriend, or a parent’s house number.

3. You obtain something (also means anything).

Breaking the law?

• Yes– Not “telephone number of” = not your number

– Not “origination of” = you can’t be reached at that number

– Misleading and inaccurate

Common Misunderstandings

“What I do isn’t breaking the law. My intent isn’t to cause harm, defraud or wrongfully obtain anything of value.”

Wrong. Read the law.

• Belles Camp “invented” spoofing. If we thought it was legal, we’d offer it.

Common Misunderstandings

“Why are there still spoofing services?”

Because …

• Not illegal to provide spoofing

• Prank/entertainment calls not illegal

• Held harmless, responsibility (wink and a nod?) clauses

The Risk of Interpretation

The Truth in Caller ID Act of 2009 has room for interpretation.

There have been no cases decided that I’m aware of.

Do you really want to become case law?

The Risk of Interpretation

Let’s say I’m wrong.

1. It’s not likely to get out at MSJ (Motion for Summary Judgment).

2. Your E&O policy won’t cover the claim.

3. Even if you win, you lose:– You’ll spend thousands of dollars defending yourself.– You won’t get your legal fees back.– You won’t be able to file a Malicious Prosecution case.– It causes stress to your family, health and business.

All for a skip?

The Risk of Interpretation

A violation will cost you a lot.

1. “$10,000 for each violation, or three times that amount for each day of a continuing violation, except that the amount assessed for any continuing violation shall not exceed a total of $1,000,000″

2. Civil claim; compensatory and punitive damages

Cell Phone PingingWhat You Need to Know

Cell Phone Pinging

• Compliant examples of cell phone pinging

– When writing the bond

– As part of skip tracing

• Noncompliant examples of cell phone pinging

– What not to do

• Different laws that apply to address location information and privacy

– Location information = the pinging of a cell phone

– Privacy. Yes, a person’s cell phone is protected

• The effect of noncompliance in the bail industry

Locating a Cell Phone: What Is Compliance?

• Must have consent

– Explicit in the bond agreement

• Cannot be buried in small print

• Separate disclosure page is best

Locating a Cell Phone: What Is Compliance?

Notice must be given to the cell phone owner before obtaining location information.

• Double opt-in is best.– At the time the bond is signed, this text is sent: “We would like to

obtain your cell phone location. To agree, reply with YES 1234 or NO.”

– If they reply “YES 1234,” a second text message is sent (double opt-in): “Your cell phone location has been obtained. To Cancel/Stop, reply with CANCEL/STOP. Terms and conditions.”

– If they reply “NO,” location information is not obtained.

– A URL with sponsor’s name, data retention policy, and privacy policy is required.

Locating a Cell Phone: What Is Compliance?

If cell phone location information is ongoing (until court), reminder texts must be sent each 30 days.• “REMINDER. Your cell phone location information is being obtained. To

Cancel/Stop, reply with CANCEL/STOP. Terms and conditions.”

Cell Phone Pinging: What Is Noncompliance?

Locating a cell phone without consent, following all laws and carrier requirements• Single opt-in or double opt-in is required – no exceptions.

• Trickery is not consent.

• Repeatedly texting a cell phone number until it replies to the text message: When the cell phone replies to the text message, the text messages stop and the cell phone owner’s location information is obtained.

• All carriers have strict rules that must be followed by any location information application.

• At least four federal laws and numerous state laws must be followed.

Cell Phone Pinging: What Is Noncompliance?

Obtaining or selling location information without consent• Contacting someone, giving them a cell phone number and obtaining the

location of the cell phone number from them

• Purchasing and/or possessing cell phone location information from anyone other than the carrier or a provider approved by all carriers

Applicable Laws and Cell Phone PrivacyFour federal laws apply

1. Communications Act of 1934, amended by the Telecommunications Act of 1996

– Imposes a duty on all carriers (covered entity) to keep customer information confidential

2. Telephone Records and Privacy Protection Act of 2006 (TRPPA)

– Amended to include the word “location,” with the specific intent to protect cell phone location information

3. FCC Declaratory Ruling, June 27, 2013

– Specifically included “cell phone location information” as confidential information, i.e., a confidential phone record

Applicable Laws and Cell Phone PrivacyFour federal laws apply

4. FTC: Section 5 of the Trade Commission Act

– Prohibits unfair or deceptive acts or practices in or affecting commerce

– FTC initiated suits in 2006 that sought penalties and injunctions of the sale of telephone records

Every state has a law covering confidential information, personal information and customer proprietary network information (CPNI). Cell phone location information falls under all definitions.

How Does Noncompliance Affect the Bail Industry?

• Carriers have had complaints and hassles. Indicators are that carriers are phasing out cell phone location information for the bail industry.

• Verizon, the No. 2 largest carrier, has already quit approving cell phone location apps for anything bail-related.

• Locaid, the largest location information platform, won’t submit anything bail-related.

• It seems doubtful that bail industry cell phone location apps will survive.

• How’d we get here? Noncompliance.

Effective and Compliant Skip Tracing Techniques

• www.belleslink.com → BellesLink Learn Skip Tracing blog

• We have 23 years of experience, millions of phone calls, thousands of cases.– We do what our customers tell us.

• Be hard on your techniques; look for holes. – What would tip you off?

Effective and Compliant Skip Tracing Techniques

What works?

• Compliance. – Instead of spoofing, use a local number combined with a

toll-free number.

• Always plan the call in reverse.

• More than 80 percent of all calls go to voice mail. – Build your strategy around effective messaging.

• What’s “effective”? What would engage you?

Effective and Compliant Skip Tracing Techniques

What works?

• Getting response = linking everything together. Create the impression you’re calling from the 25th floor of a skyscraper.– Voice mail message should match greeting.

– Caller ID should match voice mail message and greeting.

– Extensions should match voice mail message.

– Texts should match emails.

– Phone numbers, greetings, voice mail messages, extensions, texts and emails — everything needs to match.

• Use services that save time: copying and pasting, cobbling together services, case management. Time saved = more time for skip tracing.

Effective and Compliant Skip Tracing Techniques

What doesn’t work?

• Repeatedly calling until they answer.– Wastes time

– Puts you on the defensive if/when they do answer = “Why do you keep calling and hanging up?”

– Overall poor technique; time-consuming, can’t use messaging, cases stack up, you have no idea who’s calling — why or from where

• Using the “Frankenstein” technique– Burner phone, free searches, three phone services, four

databases, etc.

– Nothing links together

– Time-consuming, a headache to keep track of it all

– Tripping over a dollar to pick up a nickel

Effective and Compliant Skip Tracing Techniques

What doesn’t work?

• Using services that aren’t designed for skip tracing– There’s a reason your industry or “skip tracing” isn’t mentioned

anywhere on their website.

Summary

• There is no magic database. Cell phone pinging and caller ID spoofing are not compliant.

• Create more time for skip tracing.

• Focus on compliance – best practice, best for business.

• Support trade groups such as PBUS.– There’s power in numbers. Each additional member you bring into this

association amplifies the association’s ability to accomplish its goals.

Summary

• Embrace co-opetition.– www.mayet.som.yale.edu/coopetition

Co-opetition means cooperating to create a bigger business “pie” while competing to divide it up. By working together, you’ll be able to get the changes that you need accomplished. You’ll be able to define and grow the “pie” and compete based on ability,

compliance and added value rather than just cost.

Thank You!

A Special Resource for PBUS Conference Attendees

info.belleslink.com/pbus2014

Contact MePaul Kulas | paul@bellescamp.com | 970.328.0400