Telco fined $2.5 million for mobile phone fraud
A telecommunications firm has been fined the maximum possible for lax security that allowed fraudsters to dupe customers.
Southern Phone Company Limited has paid a $2,500,560 fine for breaching anti-fraud laws following the Australian Communications and Media Authority (ACMA) crackdown on mobile number fraud.
Fraudsters were able to manipulate telecommunications systems to bypass required authentication processes and gain control of consumers’ mobile phone number services.
They were able to access bank accounts where 20 consumers reported losses totaling at least $393,000.
The ACMA investigation found Southern Phone breached anti-fraud rules 168 times in the eight-month period between July 2024 and February 2025.
Observer Samantha Yorke said the telco had subjected people to significant financial harm and stress over a long period of time.
“The penalty paid in this case is the highest penalty imposed by ACMA for such breaches and reflects the seriousness and extent of Southern Phone’s failings,” he said.
He said the vulnerabilities in Southern Phone’s systems went undetected for more than a year.
The telco is required to independently review its processes, conduct regular security tests of its systems and report to authorities.
Telcos have paid more than $4.6 million in fines to crack down on mobile phone fraud under ACMA’s compliance regime.
“This is the third enforcement action we have taken this year involving fraudsters exploiting a vulnerability in a telecommunications company’s number porting processes,” Ms Yorke added.
“Telecommunications companies need to recognize that this is an established technique used by fraudsters and strengthen their defenses.”
Optus, Australia’s second-largest telecommunications company, was also fined more than $800,000 in November for a similar breach that came on the heels of a major outage in which more than 600 triple zero calls were unable to connect.
Telecommunications laws require telecommunications companies to verify the identities of people who want to transfer their numbers to a new provider before the transfer is completed.
Australians have avoided losses of around $260 million due to fraud in the first nine months of 2025, according to the National Anti-Fraud Centre.
