Australian telecommunications provider Exetel has incurred a fine of $694,860 following an investigation by the Australian Communications and Media Authority (ACMA). The company was found to have breached anti-scam regulations on 73 occasions in June and July 2024, allowing scammers to manipulate its systems and bypass essential identity verification processes.
The ACMA’s investigation revealed that these vulnerabilities enabled scammers to gain control of mobile number services, leading to unauthorized access to consumers’ bank accounts. The total reported financial losses attributed to these breaches amount to at least $412,000.
Regulatory Response and Implications
ACMA member Samantha Yorke emphasized the serious implications of Exetel’s failures, stating that they exposed customers to significant financial harm and emotional distress. “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,” Ms. Yorke said.
Despite Exetel’s prompt actions to address the identified issues, Yorke stressed that the vulnerabilities should not have existed in the first place. She underscored the need for telecommunications companies to secure their online portals to prevent such exploitation by sophisticated criminal syndicates.
Comparison with Other Industry Incidents
The fine imposed on Exetel marks the largest penalty to date for violations of these regulations. In a related incident, fellow telecommunications provider Optus admitted to engaging in unconscionable conduct, resulting in a $100 million penalty for selling customers mobile phones and contracts they did not want or need. This ongoing scrutiny of the telecommunications sector highlights the urgent need for robust consumer protection measures.
The Australian Competition and Consumer Commission (ACCC) has also taken legal action against Optus in October 2022 over similar deceptive practices that affected numerous vulnerable customers. As the industry faces increasing pressure to enhance security and accountability, the actions taken by regulatory bodies serve as a critical reminder of the importance of safeguarding consumer interests.
Exetel is a part of the Superloop Group, which has been publicly listed on the ASX since 2015. The company has been contacted for comment regarding the fine and the implications of the ACMA’s findings.
