FCC Moves to Bring Call Centers Back to US, Curb Offshore Fraud

The move, approved by the Commission this week, opens a formal rulemaking process to address growing consumer complaints about offshore call centres and rising fraud risks.​

FCC Chairman Brendan Carr said Americans are increasingly frustrated when customer service calls are routed abroad. "Too often, foreign call centers have meant confusing service, delayed support, and even security risks," he said. "It is time for this offshoring to end."​

The proposal seeks public comment on measures to encourage companies to bring call centre operations back to the U.S. It also explores requiring call centre workers to be "proficient in American Standard English" and better trained to handle customer issues.​

According to the FCC, nearly 70 per cent of U.S. companies have outsourced at least one department overseas in recent decades. While this shift reduced costs, regulators say it has created persistent problems for consumers, including communication barriers and delays in resolving complaints.​

The Commission also flagged national security and data privacy risks. Overseas call centres often handle sensitive financial and personal data, which can be vulnerable to misuse. "Bad actors often leverage the training and infrastructure of legitimate call centers to defraud Americans," the FCC said.​

The new proceeding proposes several regulatory options. These include allowing consumers to request transfer to U.S.-based agents, requiring companies to disclose the location of call centres, and mandating that certain sensitive interactions be handled domestically.​

Another key focus is robocall fraud. The FCC is examining whether financial penalties such as fees or bonds could be imposed on entities linked to illegal robocalls originating abroad. The goal is to "take the profit out of those operations," Carr said.​

Commissioner Anna M. Gomez said the effort is rooted in consumer concerns. "Consumers rely on customer support lines to solve the problems they experience with communications services," she said, adding that the FCC must gather input from both consumers and service providers before finalising rules.​

Commissioner Olivia Trusty highlighted broader risks posed by evolving technology. She warned that scammers are using "new, sophisticated ways to exploit vulnerabilities in communications networks," undermining trust and slowing innovation.​

The FCC said the telecommunications sector consistently ranks among the lowest in customer satisfaction surveys, making reform urgent.​

The proposal does not immediately impose new rules but begins a consultation process that could lead to binding regulations in the coming months.​

For India and other outsourcing hubs, the move signals potential disruption in the global business process outsourcing (BPO) industry, which has long relied on U.S. corporate contracts. Any shift toward onshoring could affect employment patterns and service delivery models.

- IANS