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Wireless Telecommunications Bureau


Wireless Telecommunications Investment Scams

The Federal Communications Commission (FCC) is offering guidelines to help protect potential investors in wireless telecommunications services from being defrauded by unscrupulous promoters. Recently there has been a surge in the number of reported cases of fraud in emerging telecommunications services such as Paging, Specialized Mobile Radio (SMR), Wireless Cable, Interactive Video and Data Services (IVDS), Personal Communications Service (PCS) and Cellular Radio Telephone (underserved areas).

Telecommunications is an undeniably alluring, fast-paced, multi-billion dollar industry. Combine that with brain-numbingly complex technologies and it creates the perfect environment for scam artists. The problem for the potential investor is differentiating opportunity from opportunism.

Separating truth from fiction in these sophisticated scams is not easy. However, the experience gained by the FTC and other agencies prosecuting these types of scams suggests some common warning signs that should alert you that the investment proposal may not be legitimate.

Common Warning Signs

Avoiding Fraud

The burden is entirely on the investor to investigate the technology, the potential of these licenses to produce revenues, and the condition of the marketplace. License holders are responsible for being familiar with Federal Communications Commission rules and regulations.

The Commission does not approve any individual investment proposal, nor does it provide a warranty with respect to any authorization. Receiving an authorization for a license from the FCC is not a guarantee of success in the marketplace.

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