Communication Watchdog Sets New Rules After Aussies Loose Millions To SMS Scam Messages

After more than $6 million in losses to SMS scams, the communications watchdog is cracking down on telcos.

The new rules from Tuesday, require mobile phone providers to trace, identify and block SMS scam messages, and publish information for customers on how to identify and report scams.

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The Australian Communications and Media Authority (ACMA) also said companies will be required to share information about scam messages with other providers, and report scams to the authorities.

“There is no silver bullet to stop scams, but we know enforceable laws can have a significant impact and every blocked scam is a win for consumers. The harder we make it for scammers, the less Australians are likely to be targeted,” Acma chair Nerida O’Loughlin said in a statement.

“We expect to see SMS scams reduce as industry step up to do more to protect their customers.

- Ms O’Loughlin

According to Australian Competition and Consumer Commission (ACCC) data, SMS scams cost Australians more than $2 billion in the last year, with around $10 million lost through text messages.

Federal Communications Minister Michelle Rowland said the new rules will make scammers think twice.

"Most Australians have either received a scam text message, or know someone who has, and know how easy it can be to fall into the trap.

"These new rules aim to disrupt scammers' business models, which will help to protect vulnerable Australians against scammers accessing their bank account, social media and online businesses," she said.

cMobile phone companies that fail to comply with the new code to SMS scam messages, could face up to $250,000 in fines.

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