Telstra has acknowledged the findings of the communications watchdog that it left tens of thousands of customers vulnerable to SIM-swap scams and mobile fraud.
The telecom giant paid a $1.5 million fine issued by the Australian Communications and Media Authority (ACMA), after its investigation found Telstra failed to use ID authentication processes for 168,000 high-risk customer interactions between 2022 and 2023.
Telstra was hit with a $1.5 million fine after failing to adequately protect customers from scams and fraud.Credit: Oscar Colman
Telstra acknowledged ACMA’s findings and said it had a strong track record in keeping its customers’ data safe. The customer ID authentication rules were introduced in 2022.
“The scope of changes driven by the new obligations were significant,” a Telstra spokesman said.
“We had to design and deploy multi-factor authentication processes across all our channels, while also maintaining our ability to service customer requests, including those customers who could not complete multi-factor authentication.
“The telco has paid a $1.5 million fine and will appoint an independent consultant to review its compliance with customer ID rules.”
“The news of this breach is deeply disappointing and highlights once again the need for cross-sector reform of scam prevention arrangements to ensure that consumers are protected from increasingly complex scams,” Carol Bennett, chief executive of consumer lobby group ACCAN, said in a statement.
“At a time when consumers are being asked to adopt new technologies, educate themselves and be proactive to avoid being scammed, a major telco has once again abrogated their responsibilities to protect their customers’ privacy and livelihoods.”
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