Telstra hit with $277k penalty over SIM swap failures

Telstra has paid a $277,200 penalty after the Australian Communications and Media Authority (ACMA) found the telco failed required identity checks and fraud protections for customers vulnerable to mobile number scams.

The regulator found Telstra failed to use required identity authentication processes during 15 unauthorised SIM swaps between January and October 2025. Customers affected by fraud reported combined financial losses of at least $39,500.

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Telstra staff failed to follow fraud processes

ACMA Authority Member Samantha Yorke said mobile number fraud is often carried out by criminal syndicates and can lead to serious financial consequences for victims.

“In this case, Telstra’s frontline staff did not follow the provider’s own processes, leaving customers vulnerable to SIM swap scams and other types of mobile fraud,” Yorke said.

The investigation also identified 13 cases where Telstra agents did not provide additional fraud protections to customers who had raised concerns or had already been identified as being at risk.

“When a telco becomes aware that a customer is at risk of fraud involving their service, it must offer protections that are additional or tailored to the situation,” Yorke said.

“These failures exposed Telstra’s customers to real harm, with customers reporting combined financial losses of at least $39,500 after falling victim to fraud.”

ACMA crackdown passes $5 million in penalties

Alongside the $277,200 penalty, the ACMA has accepted court-enforceable undertakings from Telstra. The telco must strengthen its fraud prevention processes and improve training for customer-facing staff.

The investigation followed ACMA monitoring of Telstra after an earlier enforcement action involving the same rules. It marks the seventh action announced under the regulator’s crackdown on mobile number fraud, with telcos paying more than $5 million in penalties to date.

The ACMA urged consumers who believe they have been targeted by a phone scam to contact their telco and financial institution immediately.

IDCARE also provides support for people whose identity has been compromised or stolen. Support is available through Lifeline and Beyond Blue.