Exetel Fined Heavily for Scam Lapses

Exetel Pty Ltd, an Australian telecommunications company, has been fined $694,860 by the Australian Communications and Media Authority (ACMA) following a breach of anti-scam regulations. The penalty comes after an investigation revealed that Exetel failed to comply with established protocols designed to protect consumers from fraudulent activities.

The ACMA’s investigation, which covered incidents in June and July 2024, found that Exetel’s systems were compromised on 73 occasions, allowing scammers to bypass identity verification processes. These lapses resulted in unauthorized control of mobile numbers and access to consumers’ bank accounts, causing reported financial losses of at least $412,000.

Samantha Yorke, a member of the ACMA, emphasized the gravity of the situation, noting the significant financial and emotional harm suffered by victims. “Exetel exposed people to serious financial harm and stress. While they took steps to rectify the issues, these vulnerabilities should not have existed,” she stated.

The financial penalty is the largest imposed to date for such breaches, underscoring the ACMA’s commitment to enforcing compliance with the Telecommunications Industry Standards. The authority continues to prioritize disrupting mobile number fraud and is actively monitoring compliance among telcos.

The ACMA supports broader government initiatives to combat scams and online fraud, urging consumers to report any suspicious activities to Scamwatch and seek assistance from organizations like IDCARE, Lifeline, and Beyond Blue. These efforts aim to protect Australians from financial harm and improve the overall security of telecommunications services.