- telecommunications fraud
- ACMA enforcement
- mobile security
Exetel faces record penalty from ACMA after scammers exploited system vulnerabilities to steal mobile numbers and access customer bank accounts, causing $412,000 in losses.
Major Telco Penalty Highlights Mobile Number Security Risks
The Australian Communications and Media Authority (ACMA) has imposed a substantial $694,860 penalty on Exetel Pty Ltd following a significant mobile number fraud incident that exposed customers to serious financial harm. This enforcement action represents the largest financial penalty to date under mobile number portability fraud prevention rules.
The penalty stems from 73 separate breaches of telecommunications fraud prevention laws that occurred during June and July 2024. These violations allowed sophisticated scammers to manipulate Exetel's systems and bypass critical identity verification processes designed to protect consumers.
How Scammers Exploited System Vulnerabilities
The ACMA investigation revealed that criminals successfully gained unauthorised control of mobile number services through weaknesses in Exetel's online portals and verification systems. This unauthorised access enabled scammers to infiltrate customers' bank accounts, resulting in documented financial losses of at least $412,000.
The fraudulent activity demonstrates the sophisticated methods employed by criminal syndicates targeting Australian telecommunications infrastructure. These groups specifically target vulnerabilities in mobile number portability processes, which allow customers to transfer their phone numbers between different service providers.
ACMA's Strong Enforcement Response
Authority Member Samantha Yorke emphasised the severity of the security failures and their impact on affected consumers. The investigation highlighted that whilst Exetel implemented corrective measures after identifying the issues, the fundamental problem was that these vulnerabilities should never have existed in the first place.
The enforcement action reflects ACMA's commitment to holding telecommunications providers accountable for maintaining robust fraud prevention measures. Mobile number fraud disruption has become a current compliance priority for the authority, with active monitoring of industry compliance and strong enforcement actions for violations.
Regulatory Framework and Industry Standards
The penalties were issued under the Telecommunications (Mobile Number Pre-Porting Additional Identity Verification) Industry Standard 2020. This regulatory framework establishes mandatory requirements for telecommunications providers to verify customer identity before completing number transfers between carriers.
These verification requirements serve as critical safeguards against fraudulent number portability requests. The standards require telcos to implement secure systems that cannot be easily compromised by criminal organisations attempting to gain unauthorised access to customer accounts.
Consumer Impact and Protection Measures
The financial losses represent only part of the broader impact on affected consumers. Beyond immediate monetary harm, victims often experience ongoing emotional distress and complications related to identity theft. Personal information misuse can create long-lasting problems that extend far beyond the initial fraudulent activity.
Consumers who suspect they may be victims of mobile number fraud should immediately contact both their telecommunications provider and financial institution. Early reporting can help minimise potential losses and facilitate faster resolution of fraudulent activities.
Government Anti-Scam Initiatives
This enforcement action supports the Australian Government's comprehensive Fighting Scams initiative, which addresses various forms of scams and online fraud threatening Australian consumers. The ACMA plays a vital role in this broader effort to protect citizens from financial harm through telecommunications fraud.
The authority also contributes to the National Anti-Scam Centre's work, which coordinates efforts between government agencies, law enforcement, and private sector organisations to combat sophisticated scamming operations. This collaborative approach helps address the increasingly complex nature of modern fraud schemes targeting Australian consumers.