Firm fined after failing to stop customers losing $45k to scammers
A telecommunications firm has been sanctioned by regulators after failing to stop fraudsters who defrauded customers of more than $45,000.
An investigation by the Australian Communications and Media Authority found that vulnerabilities in the SpinTel system allowed fraudsters to take advantage of 10 of its customers.
It was revealed that fraudsters fraudulently transferred the mobile phone numbers of 10 people, allowing them to access their personal information and defraud victims of thousands of dollars.
Following an investigation, ACMA fined the firm $59,400 after finding its systems were not robust enough to prevent fraud from taking place.
ACMA’s Samantha Yorke said: “Losing thousands of dollars in seconds can be devastating and have lasting effects.
“When a fraudster gains access to your cell phone service, you are in danger.
“They can access your banking apps, health records, personal information and more.”
The sanction ordered SpinTel to independently review its security regulations.
The investigation comes as part of a crackdown on mobile phone number fraud, for which businesses have paid close to $5 million in fines in the past 18 months.
This particular scam targeted SpinTel customers between February and March 2025.
The ACMA also issued a warning notice to a second firm, Yomojo Pty Ltd, for failing to publish anti-fraud advice on its website.
Ms Yorke added: “This is the sixth sanction announced in the past year to ensure consumers are protected from this type of fraud.
“We are deeply concerned that many telecommunications companies have system vulnerabilities that put Australians at risk of preventable harm.”
