Telecom Giant Fined $2.5M

Southern Phone Company Limited, a major telecommunications provider, has been penalized $2,500,560 for failing to adhere to anti-scam regulations, according to a recent Australian Communications and Media Authority (ACMA) report. The fine is the result of an extensive investigation revealing that over 168 breaches occurred between July 2024 and February 2025, during which scammers exploited the company’s systems to bypass identity verification processes and hijack consumer mobile services.

The investigation disclosed that these security lapses enabled scammers to access and steal from consumers’ bank accounts, with reported losses totaling at least $393,000 affecting 20 individuals. Samantha Yorke, an ACMA Authority Member, emphasized the severe financial and emotional distress inflicted on consumers due to these breaches. She noted that the vulnerabilities in Southern Phone’s security mechanisms had been overlooked for over a year, which could have been rectified sooner to mitigate consumer harm.

In response to these infractions, ACMA has not only imposed a substantial fine but also secured a 36-month court-enforceable undertaking from Southern Phone. This agreement mandates an independent review of the company’s processes, regular security assessments, and ongoing reports to ACMA. Yorke highlighted the urgency of addressing such vulnerabilities, as this marks the third enforcement action this year against telcos for similar security failures. She stressed the importance for telecom companies to enhance their defense systems against known scamming techniques.

Consumers suspecting any fraudulent activity related to their mobile service are urged to immediately contact their telecom provider and financial institution. Additional resources for victims of identity theft include IDCARE and mental health support through Lifeline and Beyond Blue.