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ACMA investigation found Exetel breached anti-scam laws on 73 occasions in 2024, allowing scammers to bypass identity verification processes.
Australian telecommunications company Exetel has copped a $694,860 penalty after an investigation by the Australian Communications and Media Authority found it had failed to comply with anti-scam laws on 73 occasions between June and July 2024.
As a result, scammers were able to manipulate Exetel’s systems to bypass certain steps in identity verification processes and gain control of customer mobile numbers, subsequently accessing their bank accounts and making away with at least $412,000.
“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,” Authority Member Samantha Yorke said in an August 27 statement.
“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.”
This is the largest penalty paid to date for failure to comply with anti-scam rules.
The ACMA will continue to actively monitor telcos for anti-scam compliance and will take strong action in the future if called for.
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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