‘Multiple systemic failures’: Telco cops $100,000 fine for breaching anti-scam laws

A telco has been fined more than $100,000 for failing to prevent mobile number fraud and reduce scam text messages over a five-year period.

The Australian Communications and Media Authority (ACMA) handed a $106,560 fine to Telnyx after its investigation revealed the firm allowed for at least 4666 texts from companies using their business name as the sender ID, rather than a phone number, without checking they were not scams.

Telnyx was also found to have not given critical customer data to a database used by triple-zero teams to help find people in emergencies, or to alert services warning mobile users of bushfires on more than 3200 occasions between 2017 and 2022.

The watchdog’s chair Nerida O’Loughlin said Telnyx had multiple systemic failures that had let its customers down.

“Telnyx’s breaches weakened the application of anti-spam rules at a time when scam SMS have heavily impacted many Australians,” she said.

“The fact that Telnyx is a smaller telco is simply no excuse as it breached a raft of rules in place to prevent serious harm to Australians.”

It was also found the telco did not carry out adequate ID checks for prepaid mobile customers or when customers were transferring from another service.

The watchdog has ordered for Telnyx to comply with multiple industry codes along with the fine, which includes measures to reduce scam calls.

“We expect new telcos to be compliant with industry rules from day one of their operations, including anti-scam and public safety rules,” O’Loughlin said.

“Protecting their customers should be the highest priority of all telcos, regardless of their size or how long they have operated.”