Anti-telecom fraud campaigns are crucial for economic stability, but their effect on corporate innovation has received little attention. We draw on a combination of firm-level data concerning 167 countries or regions combined with country-level data regarding anti-telecom fraud policies to reveal that regional anti-telecom fraud significantly promotes corporate innovation. We confirm the mechanism through which anti-telecom fraud facilitates corporate digital trust. Furthermore, innovation is driven through three paths: activating investment, strengthening collaboration, and optimizing human capital. We conduct heterogeneity analyses in three aspects. In terms of policy, we find a stronger effect when anti-telecom fraud policies are consistently implemented and when emerging technologies are adopted. With respect to firms, the impact is greater for nonhigh-tech firms and firms with political connections. In terms of society, the influence is more significant when governments are transparent and when societies are aging. Finally, we show that the innovation derived from regional anti-telecom fraud enhances corporate participation in global value chains. This study contributes to the research on the effects of (anti-)telecom fraud on business and innovation.