Editing Caller ID (section)

== Dip fee fraud ==

A consumer's telephone company must pay a small fee for the Caller ID text that is transmitted during a call. The fee is called a [[Calling Name Presentation|CNAM dip fee]]. It is named a dip fee because the called party's carrier pays a fee to dip into the originating telephone company's database to get the Caller ID information.<ref name="dip_fraud">{{cite web |url=https://telemarketerspam.wordpress.com/2013/01/22/over-100000-ftc-complaints-filed-against-callerid4u-inc/ |title=Over 100,000 FTC Complaints Filed Against CallerID4U, Inc. |website=The Telecom Compliance News Press |date=January 22, 2013 |access-date=February 27, 2019 |archive-date=April 13, 2024 |archive-url=https://web.archive.org/web/20240413145722/https://telemarketerspam.wordpress.com/2013/01/22/over-100000-ftc-complaints-filed-against-callerid4u-inc/ |url-status=live }}</ref><ref>{{cite web |title=CallerId4U, Inc. - Millions of Illegal Telemarketing Calls |author=JD |date=January 22, 2013 |website=800 Notes |url=https://800notes.com/forum/ta-705926565a74ba5/callerid4u-inc-millions-of-illegal-telemarketing-calls |access-date=February 27, 2019}}</ref><ref name="winning">{{cite news |title=Why Robocallers Win Even if You Don't Answer |first=Sarah |last=Krouse |url=https://www.wsj.com/articles/why-robocallers-win-even-if-you-dont-answer-1528104600 |newspaper=[[The Wall Street Journal]] |date=June 4, 2018 |access-date=November 23, 2019 |archive-date=September 10, 2019 |archive-url=https://web.archive.org/web/20190910002257/https://www.wsj.com/articles/why-robocallers-win-even-if-you-dont-answer-1528104600 |url-status=live }}</ref>

Several companies engage in generating dip fees by catering to companies that make a large number of outbound calls. CallerId4U and Pacific Telecom Communications Group cater to telemarketers and generate revenue on fees from Caller ID information. The telemarketers enter into an agreement with companies like CallerId4U and Pacific Telecom Communications Group and share the revenue produced during the telemarketing call.<ref name="dip_fraud" />

Dip fees vary wildly. According to Doug McIntyre, the wholesale rates are on the order of $0.002 to $0.006 per database dip.<ref>{{cite newsgroup |title=Caller ID information wrong |first=Doug |url=https://groups.google.com/d/msg/comp.dcom.telecom/GkgttTamzAw/GpFZpisBNJMJ |last=MacIntyre |newsgroup=comp.dcom.telecom |message-id=WIKdnRBVbcvWzm3PnZ2dnUVZ_oSdnZ2d@giganews.com |date=February 3, 2014 |access-date=November 26, 2019 |archive-date=April 13, 2024 |archive-url=https://web.archive.org/web/20240413145911/https://groups.google.com/g/comp.dcom.telecom/c/GkgttTamzAw/m/GpFZpisBNJMJ |url-status=live }}</ref> And according to Aaron Woolfson, president of TelSwitch Inc, the fee structure for dip fee fraud can include:<ref name="winning" />

* the carriers pay a fee of $0.003 per call or $300 per 100,000 calls to the database owner
* the database owner pays the number dealers $0.0024 per call or $240 per 100,000 calls
* the number dealers share revenue with the robocaller $0.00096 or $96 per 100,000 calls

Consumers face significant barriers to exiting a call list and often cannot have themselves removed from the list. Calling the opt-out numbers often results in a fast-busy so the call never completes and the consumer remains on the list.<ref name="dip_fraud" />

According to reports companies like CallerId4U have thousands of phone numbers and thousands of FTC complaints filed against them each month for violating [[National Do Not Call Registry|Do Not Call]] registration. The large number of phone numbers dilute the number of complaints against the company and phone number.<ref name="dip_fraud" />