Lycamobile Fined $376K for Scam

Lycamobile Pty Ltd, a telecommunications company, has paid a hefty sum of $376,200 in penalties after an investigation by the Australian Communications and Media Authority (ACMA) found that it failed to perform adequate identity checks when transferring mobile phone services. This oversight led to consumer losses totaling at least $175,000 due to identity theft and financial fraud.

The investigation highlighted that between September and December 2024, Lycamobile breached anti-scam regulations on 131 occasions. Scammers exploited these lapses to hijack mobile numbers, gaining access to victims’ banking, health records, and other personal information. ACMA Chair Nerida O’Loughlin emphasized the severe implications of such breaches, noting that when a phone number is stolen, it can compromise one’s entire digital identity.

In response to these violations, ACMA has enforced an 18-month court-enforceable undertaking requiring Lycamobile to engage an independent consultant to overhaul its security protocols. The telecom company is expected to enhance its systems as recommended and maintain regular reporting to the ACMA. This action is part of a broader effort by the ACMA to clamp down on non-compliance within the industry, which has seen over $4.8 million in fines levied for similar breaches in the past year.

Consumers are urged to contact their telecom provider and financial institutions immediately if they suspect being victims of a phone scam. Additionally, they can report scams to Scamwatch and seek assistance from IDCARE for compromised identities. Support is also available through Lifeline and Beyond Blue for those affected by the emotional impacts of such frauds.