Under an Australian Communications and Media Authority (ACMA) crackdown on mobile number fraud, Exetel Pty Ltd has paid a $694,860 penalty for failing to comply with laws that protect customers from scammers.
An ACMA investigation found the Australian telco breached the rules on 73 occasions in June and July 2024 after scammers were able to manipulate its systems to bypass parts of the required identity verification processes.
As a result, scammers were able to gain control of mobile number services and access consumers' bank accounts, with reported losses of at least $412,000.
Authority Member Samantha Yorke said Exetel had exposed people to serious financial harm and stress.
"We are aware of reports of significant financial losses suffered by consumers, and we know that this kind of fraud can also lead to misuse of personal information and ongoing emotional harm connected to identity theft," Ms Yorke said.
"While Exetel took steps to fix its issues soon after they were identified, the simple fact is the vulnerabilities should not have existed in the first place and the people impacted should have been protected."
"These scams are often perpetrated by sophisticated criminal syndicates and telcos must ensure their online portals and forms are secure and cannot be compromised."
The financial penalty paid by Exetel is the largest to date for contraventions of these rules.
Disrupting mobile number fraud is a current ACMA compliance priority. The ACMA is actively monitoring whether telcos are complying with their fraud prevention obligations and will take strong enforcement action if we find non-compliance.
The Telecommunications (Mobile Number Pre-Porting Additional Identity Verification) Industry Standard 2020 sets out rules requiring telcos to verify the identity of people wanting to transfer their numbers to a new provider before a transfer is completed.
Consumers should contact their telco and financial institution immediately if they think they have been a victim of a phone scam.
The ACMA supports the government's Fighting Scams initiative to address scams and online fraud and protect Australians from financial harm. We also contribute to the work of the National Anti-Scam Centre, which coordinates government, law enforcement and the private sector to combat scams.
Help other Australians by reporting scams to Scamwatch. Reporting scams and talking about them not only helps to understand what happened but also informs authorities about scammer activities so that they can make it harder for scams to occur.
IDCARE can help people whose identity has been compromised or stolen on 1800 595 160 or at https://www.idcare.org/.
Support is also available from Lifeline (13 11 14) or Beyond Blue (1300 224 636).
