The Australian Communications and Media Authority (ACMA) has directed bulk messaging company SMSGlobal to comply with anti-scam rules after finding it breached the Reducing Scam Calls and Scam SMs Industry Code.
The ACMA found that SMSGlobal originated short messages with alphanumeric sender IDs on its telecommunications network without being provided evidence of a valid use case by its A-Party customers and failed to report to the ACMA the number of scam SMs blocked for the quarters between July 2022 and December 2023 within the requisite timeframes.
An ACMA investigation found the business allowed over one million SMS to be sent using message headers (shortened business names) without sufficient checks to ensure their use was legitimate. The investigation also uncovered evidence that some scammers had used the vulnerabilities to send SMS brand impersonation scams using the message headers of well-known brands like AusPost, NAB and ANZ.
The Industry Code requires telcos to monitor for scams and take disruption action when scams are identified. Telcos must also share scam information with other telcos and government agencies.
The purpose of the Scam SMs Industry Code is to protect as many Australians as possible from harm caused by scams by disrupting scam activity in Australia and maintaining robust number hygiene to restore confidence in the legitimacy of calls and SMs reaching consumers. Key elements to achieving this objective are ecosystem-wide level compliance with number rights of use and SMs Alphanumeric Sender ID validation.
Disrupting SMS impersonation scams is an ACMA compliance priority. Telcos may face penalties of up to AUD250,000 for breaching an ACMA direction to comply with an industry code.
