You make a good point about "KYC as a proxy for fraud mitigation".
Validating a name/address/mobile number might deter the casual
criminals, but a serious threat actor will be equipped to pass the KYC
barriers.

In regards to any regulatory requirements, this is a follow up to a
thread from December, quoted below for reference.

https://puck.nether.net/pipermail/voiceops/2023-December/010278.html

Justin B Newman justin at ejtown.org
Tue Dec 12 17:52:31 EST 2023
>
> I am not a lawyer. Anyone considering offering any VoIP services today
> should have a lawyer well versed in the Act and the associated regulations.
> Starting a VoIP service in the US is no longer an easy or regulation-free
> endeavor.
>
> Within the United States, the TRACED Act required the FCC to establish
> regulations "including by establishing registration and compliance
> obligations, and requirements that providers of voice service given access
> to number resources take sufficient steps to know the identity of the
> customers of such providers, to help reduce access to numbers by potential
> perpetrators of violations of section 227(b) of the Communications Act of
> 1934 (47 U.S.C. 227(b))."
>
> 47 USC 227(b) regulates Automated Telephone Equipment, for what it's worth.
>
> In the December 22, 2020 Caller ID Authentication Best Practices, (WC
> Docket Nos. 17-97 and 20-324, DA-1526), the FCC outlines _voluntary_
> practices for know your customer (KYC), but emphasizes they are voluntary.
> Specifically, they recommend, "Voice service providers should vet the
> identity of retail and wholesale subscribers, in conjunction with (i)
> approving an application for service; (ii) provisioning of network
> connectivity; (iii) entering into a contract agreement; or (iv) granting
> the right-to-use telephone number resources."
>
> But further, 47 CFR § 64.1200(n)(3) requires a provider to, "Take
> affirmative, effective measures to prevent new and renewing customers from
> using its network to originate illegal calls, including knowing its
> customers and exercising due diligence in ensuring that its services are
> not used to originate illegal traffic."
>
> While I can imagine an argument that one has no KYC obligations if not
> supporting outbound, this imposes a clear obligation to perform KYC if
> doing outbound calling. That said, I would be uncomfortable receiving a law
> enforcement request related to a telephone number I issued (inbound only)
> where I was unable to identify the subscriber. Other providers may have
> different risk tolerances, but I do not believe interpreting these as
> requiring KYC for all number issuance to be uber-conservative.


On Thu, Feb 29, 2024 at 11:07 PM Denver Gingerich <[email protected]> wrote:
>
> On Thu, Feb 29, 2024 at 10:44:20AM -0800, Calvin E. via VoiceOps wrote:
> > A complication here is that it's an extra telephone number privacy service,
> > and blocking VPN users is becoming another  point of "signup friction". Any
> > KYC solution we implement won't be able to assume anything from GeoIP
> > lookup. For example, one of our North America subscribers had no idea their
> > VPN service was reaching us from Saudi Arabia and Armenia.
>
> I guess I'm not sure what your reason is for KYC here.  Do you feel like it's 
> needed by some regulation?  Are you providing phone numbers in countries 
> whose laws require ID if you register a phone number there?
>
> > A further complication is free users that don't provide any billing
> > information.
>
> How do they use your service?  Do they have to install a specific app?  Is it 
> only available from the App Store or Play Store?  There might be 
> billing-info-like properties if so.
>
> > What's the minimum and maximum effort others are putting in to filter out
> > the Donald Ducks and Scooby-Doos?
>
> If you believe there's something required by regulation, then I'd look to the 
> text of the regulation (ideally with a lawyer) to see what efforts that 
> regulation requires.  But I also wonder if you're looking for KYC as a proxy 
> for fraud mitigation, in which case the solutions will be much different.  
> You can definitely do successful fraud mitigation without any KYC (e.g. where 
> your customers pay with anonymous cryptocurrency or cash).
>
> Denver
> https://jmp.chat/
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