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An ACMA investigation has found that a lack of identity verification rules led to identity theft and the loss of tens of thousands of dollars.
A company trading as Circles.Life has paid a $413,000 fine – the largest levied to date – after an investigation by the Australian Communications and Media Authority (ACMA) found that its lack of compliance with identity verification regulations led to its customers falling victim to costly scams.
Circles Australia was found to have violated these rules 26 times between January and February 2024. The company had transferred mobile phone numbers to its service without adequate identity verification protections in place, leading to scammers gaining control of phone numbers and, in turn, impersonating Circles.Life customers in order to access their bank accounts.
Impacted customers reported losing at least $45,000 due to Circles.Life’s lack of proper procedures.
This is the second time the company has been forced to pay a fine related to customer verification failures. Circles.Life paid a $199,800 fine in August 2022.
“This kind of fraud can also lead to ongoing emotional impacts and stress as people have to recover their digital identities,” Samantha Yorke, ACMA member, said in a 22 May statement.
“It is simply unacceptable that Circles.Life failed a second time to follow the identity checking rules that prevent criminals from committing mobile number fraud.”
The ACMA’s investigation found that service agents working for a third party were the source of the violations, but Yorke was firm in saying that is no excuse for the lapse.
“Regardless of these arrangements, Circles.Life was ultimately responsible for complying with the requirements. Telcos should be aware they cannot outsource their legal obligations to protect Australian consumers,” Yorke said.
Circles.Life is currently in the process of closing its operations in Australia, transferring its customers to Amaysim. However, an enforceable undertaking will remain in place in case the company enters the Australian market again.
Circles.Life’s website currently hosts a farewell message.
“Goodbyes are hard. But you made every scroll, stream, and sim worth it,” the message said.
“Thanks Australia!”
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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