Telnyx Australia has paid a $106,560 infringement notice and is under formal directive to adhere to industry regulations following an investigation by the Australian Communications and Media Authority (ACMA). The inquiry revealed Telnyx’s non-compliance with anti-scam and public safety obligations spanning the period from 2017 to 2022.
The telco is the latest to feel the wrath of the watchdog with Kmart, Commonwealth Bank, Doordash and Ticketek all recently receiving fines for spam and scam offences. Kmart was fined $1.3 million for sending 200,000 emails to users who had already unsubscribed from their mailing list. Commonwealth Bank and DoorDash were fined $3.55 million and $2 million respectively for similar spam breaches.
See also: ACMA warns brands to “get it right” as it cracks down on spam this festive season
ACMA chair Nerida O’Loughlin said: “Telnyx’s breaches weakened the application of anti-scams rules at a time when scam SMS have heavily impacted on many Australians.”
The investigation brought to light Telnyx’s allowance of at least 4,666 SMS, utilising text-based sender IDs (shortened business names), to be sent without adequate checks to confirm their legitimacy.
O’Loughlin dismissed the size of Telnyx as an excuse, stating, “The fact that Telnyx is a smaller telco is simply no excuse as it breached a raft of rules in place to prevent serious harms to Australians.”
Further findings revealed Telnyx’s failure to conduct satisfactory ID checks for prepaid mobile customers and during customer transfers from other telcos. Additionally, the company neglected to provide customer data to the Integrated Public Number Database (IPND) on more than 3,256 occasions between 2017 and 2022. The IPND plays a critical role in emergency services, aiding in locating individuals during emergencies and supporting law enforcement activities.
Apart from the financial penalty, the ACMA has mandated Telnyx to comply with the Reducing Scam Calls and Scam SMS and the Integrated Public Number Database Industry codes. Telnyx has also committed to an independent review of its compliance practices, with enforceable undertakings accepted by the ACMA.
O’Loughlin underscored the expectation for telcos, irrespective of their size or operational history, to adhere to industry rules from the outset. “Protecting their customers should be the highest priority of all telcos,” she affirmed.
Addressing SMS phone scams remains a compliance priority for ACMA, with potential penalties of up to $250,000 for telcos breaching ACMA directives.
ACMA has also shown a commitment to clamping down on gambling-related breaches. Earlier this week, ACMA identified violations by prominent betting operators, including Ladbrokes, Neds, bet365, and Sportsbet, who have since taken “corrective measures” to align with the strict interactive gambling regulations.
See also: ACMA finds Sportsbet, Ladbrokes, Neds and bet365 breached in-play betting regulations