Login
iscover
Share this article on:
Powered by
MOMENTUM
MEDIA
Powered by MOMENTUMMEDIA
ACMA investigation found the Southern Phone Company to be in contravention of Australia’s anti-scam rules on more than 160 occasions in less than one year.
The Southern Phone Company, a telecommunications and internet provider in New South Wales, has been compelled to pay a $2,500,560 penalty after an Australian Communications and Media Authority investigation found it had breached anti-scam laws on multiple occasions.
The ACMA found scammers were able to bypass identity verification processes in order to gain control of consumers’ mobile devices, leading to 20 individuals reporting a combined loss of at least $393,000.
Between July 2024 and February 2025, the ACMA found that Southern Phone had breached anti-scam rules on 168 occasions.
Authority Member Samantha Yorke said Southern Phone’s lapses had exposed its customers to “serious financial harm and stress over a long period”.
“Many individuals suffered substantial financial losses, and we know that identity fraud can cause lasting emotional distress,” Yorke said.
“The vulnerabilities in Southern Phone’s systems went undetected for over a year and should have been identified and addressed much earlier to prevent consumers experiencing this harm.
“The penalty paid in this case is the highest imposed by the ACMA for breaches of this kind and reflects the seriousness and scale of Southern Phone’s failures.”
The ACMA has also accepted a 36-month undertaking, enforceable by the courts, requiring an independent review of its processes, reporting to the ACMA, and regular security testing.
“This is the third enforcement action we have taken this year that has involved scammers exploiting a vulnerability in a telco’s number porting processes,” Yorke said.
“Telcos need to acknowledge that this is an established technique being used by scammers and harden their defences.”
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.
Be the first to hear the latest developments in the cyber industry.
