Australian Communications and Media Authority Penalizes Telco Following Investigation Into Unauthorised SIM Swaps and Vulnerable Customer Protections
Telstra has paid a $277,200 financial penalty after an investigation by the Australian Communications and Media Authority (ACMA) revealed failures in carrying out mandatory identity verification checks and providing adequate protections to customers at risk of mobile number fraud.
The ACMA investigation uncovered that between January and October 2025, Telstra failed to execute required identity authentication processes across 15 unauthorised SIM swaps. Additionally, the probe identified 13 instances where the telco’s agents failed to provide supplementary fraud protections to customers who had either raised security concerns or been identified as high-risk targets. These oversights exposed customers to real harm, resulting in reported combined financial losses of at least $39,500.
Regulatory Findings and Corrective Actions
Commenting on the enforcement action, ACMA Authority Member Samantha Yorke highlighted the severe impact of mobile number fraud, which is frequently orchestrated by criminal syndicates:
“In this case, Telstra’s frontline staff did not follow the provider’s own processes, leaving customers vulnerable to SIM swap scams and other types of mobile fraud. When a telco becomes aware that a customer is at risk of fraud involving their service, it must offer protections that are additional or tailored to the situation.”
Alongside the financial penalty, the regulator has accepted court-enforceable undertakings from Telstra requiring the company to strengthen its internal fraud prevention procedures and upgrade training programs for customer-facing personnel.
This regulatory action stems from ongoing compliance monitoring following a previous enforcement proceeding involving the same rules. It marks the seventh penalty issued under the ACMA’s broader compliance crackdown targeting mobile number fraud, with total industry penalties surpassing $5 million to date. Authorities advise any consumers who suspect they have been targeted by phone scams to contact their telecommunications provider and financial institution immediately.
