The Australian Communications and Media Authority (ACMA) has registered new rules to require Telcos to identify, trace and block SMS scams.

Working with industry peak body Communications Alliance, ACMA developed the Reducing Scam Calls and Scam Short Messages industry code in response to evidence that SMS scams are increasing in prevalence and impact.

The move has been welcomed by Communications Minister Michelle Rowland, who said Australians have lost more than $10 million to scam text messages in the last year.

“From today, mobile providers will be required to identify, trace and block text message scams, share information with other providers, and report scams to the authorities,” Minister Rowland said.

“These scammers prey on vulnerable people and cost Australians millions of dollars. They are sophisticated and they are always looking for new ways to utilise technology for their nefarious means.”

If the Telcos don’t comply with the new rules, they can face penalties up to $250,000.

ACMA Chair Nerida O’Loughlin said the new rules are the latest step towards providing better protections for consumers against scams and making Australia a harder target for scammers.

“SMS scams can be highly sophisticated and have devastating financial and emotional impacts for victims. In some circumstances, scammers can take a person’s life savings and cause profound ongoing distress,” Ms O’Loughlin said.

“These scam messages are deeply frustrating to Australians because they are received on devices that are an essential part of our social and economic lives. Almost every Australian adult and business is affected. We shouldn’t have to screen messages and adopt workaround behaviours to be able to feel safe and stay connected,” she added.

According to ACCC Scamwatch data, financial losses from SMS scams this year to date increased by 188 per cent compared to the same period in 2021 – from around $2.3 million to over $6.5 million. SMS scams accounted for about 32 per cent of all reported scams to date this year.

“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.”

Main image: Screenshot, Michelle Rowland being interviewed by Ten News Sydney, 12.7.2022.