The SMS Sender ID Registry set to protect more Australians from scammers. Australian telecommunications companies are now collaborating with the Australian Communications and Media Authority (ACMA) to block text message (SMS) scams effectively.

Over the past year, over 47 percent of Australians have shared experiences of encountering misleading or deceptive text messages. Shockingly, in 2022 alone, Australians fell victim to scams, resulting in an estimated loss of $3.1 billion.

According to the Australian Competition and Consumer Commission (ACCC), text messages have emerged as the primary means through which scams are initiated. These alarming statistics highlight the prevalence of fraudulent activities and the need for increased awareness and vigilance among the public.

Telecommunications giants have employed advanced artificial intelligence algorithms and machine learning models to detect and block suspicious texts in real-time. The technologies analyze patterns, keywords, and sender behavior to identify potential scams and prevent them from reaching users’ inboxes.

ACMA Chair Nerida O’Loughlin said telcos reported identifying and blocking the scam texts between 12 July 2022 and 30 September 2023 under the ACMA-registered Reducing Scam Calls and Scam SMS Industry Code. 

“These figures provide stark evidence of the scale of scam activity, with approximately 16 scam texts being blocked for every adult in the country.

“There is no single or easy solution to address scams, however every scam stopped is a win for consumers and helps make Australia a harder target for these criminal syndicates.

“These are promising results to report during Scams Awareness Week as telcos build their capability to help stop the relentless attacks by scammers,” Ms O’Loughlin said.

Ms O’Loughlin cautioned Australians to remain vigilant of suspicious phone calls and SMS, especially during the Christmas period.

“The lead up to the end-of-year holidays is often used by scammers to step up their activities – including via fake parcel delivery messages,” she said. 

“We encourage Australians to think about who’s really contacting them and to discuss how to identify scams with their friends, family and loved ones.

“It pays to slow down and think before acting on a call or message, and always research and independently check who you’re dealing with.”

The ACMA is currently developing the pilot of a Sender ID Registry (registry), which will help protect the message headers (such as ‘MyGov’) of brands and government agencies from impersonation by scammers.

It will not eliminate impersonation scams but will increase trust in SMS by preventing scam messages entering legitimate pre-existing text message threads on smart phones.

Close engagement with overseas registry providers has shown such registries are a valuable tool to protect consumers and brands.

The Sender ID Registry is part of the government’s Fighting Scams initiative to address scams and online fraud and protect Australians from financial harm. The initiative also supports the work of the National Anti-Scam Centre, which commenced operations on 1 July 2023.

Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP says scammers are stealing over $3 billion a year from Australians.
 
“Across Government and the private sector, from telcos, to banks, to digital platforms, we are taking the fight to the scammers and putting up barriers, to make Australia a less favourable destination for these criminals,” said Jones

The ACMA also welcomed the Federal Government’s announcement to develop the SMS sender ID register to help prevent offshore scammers impersonating trusted brands and government agencies.

Ms O’Loughlin said, “This initiative will help close a key vulnerability used by scammers. The ACMA looks forward to working with industry and trusted brands as we implement this new protection.”

ACMA Takes Action Against Australian Telcos

In May 2023, the ACMA took action against a number of telcos after compliance failures were used by scammers to send SMS road toll, Medicare and Australia Post impersonation scams to consumers.

ACMA investigations found Sinch Australia Pty Ltd (Sinch), Infobip Information Technology Pty Ltd (Infobip) and Phone Card Selector Pty Ltd (Phone Card) allowed SMS to be sent using text-based sender IDs without sufficient checks to ensure they were being used legitimately.

The ACMA found Infobip allowed 103,146 non-compliant SMS to be sent, which included scams impersonating well known Australian road toll companies. Sinch allowed 14,291 non-complaint SMS, which included Medicare and Australia Post impersonation scams.

Phone Card was also found to have inadequate systems in place to comply with the rules, however there is no evidence that scammers exploited the opportunities it created. 

Text-based sender IDs can be used by scammers to pose as legitimate organisations such as government agencies, banks and road toll companies.

Under the Reducing Scam Calls and Scam SMS Code, Australian telcos must obtain evidence from customers that they have a legitimate reason to use text-based sender IDs (such as business names) in SMS.

ACMA Chair Nerida O’Loughlin said the investigations showed scammers will readily take advantage of vulnerabilities created by telcos.

Meanwhile, last month Minister for Home Affairs and Cyber Security Clare O’Neil has said that telcos could soon be covered under the Security of Critical Infrastructure Act (SOCI)

According to O’Neil the rules will make sure that telcos actually meet the minimum cyber standards that were applied to many other critical Australian companies.

“There’s no question in my mind that, when we came to government, telcos weren’t being properly regulated. We will now require them to properly consider all of the risks on their networks and to establish proper cyber defense’s.” she said.

In 2022-23 the Australian Signals Directorate (ASD) proactively handled over 1,100 cybersecurity incidents reported by domestic entities. Furthermore, law enforcement received nearly 94,000 reports via ReportCyber, translating to an average of one report every six minutes.

The new SMS Sender ID Registry will become an important tool to take on scammers and disrupt their criminal activities. The trial will help the Government improve the system before a full national rollout in 2024.

The Registry also complements the Albanese Government’s investment to establish a National Anti-Scam Centre (NASC) within the ACCC as an innovative, world-leading public-private sector partnership to disrupt and stop scammers in Australia.

Consumers should remain vigilant about suspicious texts and take action to confirm messages are from legitimate businesses or government agencies.

Identifying scams has become more challenging lately. Last year, Australian first shared the alarming news of the staggering $3.1 billion lost to scams, marking an 80% increase from the previous year.

Beyond the financial toll, these numbers represent real people—ordinary Australians who have fallen victim to scams, often losing their life savings. The impact of scams extends far beyond monetary losses; it can have a profound and devastating effect on the lives of those targeted.

In the face of scammers adopting more advanced tactics, it’s crucial for us to enhance our collaboration and coordinate efforts to effectively combat this rising threat.

If you receive a scam message, they should report them to Australia’s Scamwatch service and provide as much detail as possible about the contact.