Scam protection: Telcos to block unregistered SMS senders

Published 03/12/2024, 11:01 am
Updated 03/12/2024, 11:30 am
© Reuters.

Telecommunications providers will be required to block scam texts or warn recipients about messages from unregistered senders, under new rules set to be implemented by the Albanese Government.

Communications Minister Michelle Rowland announced the creation of a mandatory SMS Sender ID Register, directing the Australian Communications and Media Authority (ACMA) to either block unregistered senders or flag their messages with a warning.

The initiative aims to counteract scammers impersonating reputable entities, such as banks, service providers or government organisations like ANZ, Linkt or myGov, to deceive Australians.

ACMA will establish enforceable industry standards, mandating telcos to verify whether messages sent under a brand name match legitimate sender records.

Rowland highlighted the initiative's role in safeguarding Australians against increasingly sophisticated scams. She said, “This mandatory register will enable these messages to be blocked or flagged as a scam – better protecting consumers from being cheated.”

The register is expected to open for registrations in late 2025, following a voluntary pilot involving organisations like the National Australia Bank and the Australian Taxation Office.

Assistant Treasurer Stephen Jones described the government’s coordinated approach as “among the most comprehensive in the world”, emphasising its importance in bolstering defences against scammers.

The crackdown complements broader efforts, including proposed legislation to hold banks and social media platforms accountable through compensation and fines if they fail to protect users.

Meta is also introducing measures from February, requiring financial advertisers to verify beneficiary and payer information to address fake advertisements on platforms like Facebook (NASDAQ:META) and Instagram.

Scams remain a significant issue with SMS identified as the most common delivery method.

Read more on Proactive Investors AU

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