Circles.Life Fined $413K for Anti-Scam Breaches

Circles Australia Pty Limited, operating as Circles.Life, has been penalized $413,160 for multiple breaches related to anti-scam measures, resulting in identity theft and financial losses for consumers. An investigation by the Australian Communications and Media Authority (ACMA) revealed that Circles.Life violated identity verification rules 26 times between January and February 2024, allowing scammers to exploit the situation and access individuals’ bank accounts, leading to reported losses exceeding $45,000.

According to ACMA Authority Member Samantha Yorke, the recurrence of such breaches is alarming due to the significant financial and emotional impact on affected consumers. Circles.Life had previously faced penalties in August 2022 for similar violations, indicating a pattern of non-compliance with regulations aimed at safeguarding consumers from mobile number fraud.

The investigation uncovered that the breaches were a result of third-party customer service agents failing to follow identity verification procedures, emphasizing Circles.Life’s ultimate responsibility in ensuring compliance with regulations. As part of the penalty, Circles.Life has committed to a comprehensive review of its adherence to identity verification rules and has pledged to compensate all victims affected by the breaches.

Despite plans to cease operations in Australia and transition customers to Amaysim, Circles.Life remains bound by the enforceable undertaking to uphold compliance in case of future engagements with Australian consumers. Consumers are advised to promptly contact their telco and financial institution if they suspect being targeted by phone scams, with additional support available from organizations such as IDCARE, Lifeline, and Beyond Blue.