Telcos must now take a front foot in the identification, tracing, and blocking of suspected SMS scam messages.
The Australian Communications and Media Authority introduced the Reducing Scam Calls and Scam Short Messages industry code, after reports showed the number of SMS-based scams skyrocketed in the first few months of the year.
Telcos will face penalties of up to $250,000 for breaching the new industry code.
Financial losses during the first four months of 2022 increased by 188 per cent compared to the same period in 2021, jumping from around $2.3 million to over $6.5 million.
According to the ACCC’s Scamwatch site, SMS scams accounted for about 32 per cent of all reported scams.
“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,” ACMA Chair Nerida 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.
“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,” O’Loughlin concluded.