Southern Phone Company has paid a $2.5m penalty for breaching anti-scam laws, which exposed people to “serious financial harm”.
According to the Australian Communications and Media Authority, scammers were able to gain control of consumers’ mobile number services and access their bank accounts.
The communications watchdog said 20 Australians informed them that they lost a combined $393,000 due to the breaches.
In a statement, Southern Phone’s parent company AGL said it was working with ACMA to help strengthen systems and processes to enhance customer identifciaton verification and prevent unauthorised mobile number transfers.
“We apologise and take responsibility for the errors,” an AGL spokesperson said.
“We remain committed to safeguarding customer information and upholding compliance across all operations.”
The alleged breaches occurred on 168 occasions between July 2024 and February 2025.
ACMA said it was the highest fine imposed by ACMA for breaches of this kind, and reflected the seriousness and scale of Southern Phone’s failures.
In addition to the $2.5m financial penalty, ACMA has accepted a 36-month court-enforceable undertaking from the business that requires an independent review of its processes, regular security tests of its systems and reporting to the ACMA.
ACMA authority member Samantha Yorke said Southern Phone had exposed people 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,” Ms 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.”
Southern Phone is not the only mobile provider to have breached these anti-scam laws, with ACMA citing a total of $4.6m in penalties since the anti-scam law compliance crackdown began this financial year.
“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,” Ms Yorke said.
“Telcos need to acknowledge that this is an established technique being used by scammers and harden their defences.”
ACMA said any Australians who believed they were a victim of a phone scam should contact their telco and financial institution immediately.
https://thewest.com.au/business/telco-pays-25m-penalty-after-scams-cost-customers-hundreds-of-thousands-c-20871145
