House debates

Wednesday, 14 August 2024

Bills

Telecommunications Amendment (SMS Sender ID Register) Bill 2024; Second Reading

10:12 am

Photo of Alison ByrnesAlison Byrnes (Cunningham, Australian Labor Party) Share this | Hansard source

Today is National Financial Awareness Day, an important day dedicated to promoting financial literacy and security. One of the biggest challenges posed to Australians' financial security today is the rise of SMS impersonation scams. The Telecommunications Amendment (SMS Sender ID Register) Bill 2024 is a crucial step forward in the Albanese Labor government's multipronged approach to combating SMS scams. The bill amends the Telecommunications Act 1997 to require ACMA to establish and maintain an SMS Sender ID Register. The register will play an important role in combating SMS scams by implementing a framework for the registration and regulation of SMS sender IDs.

We are taking decisive action to safeguard Australians against fraudulent activities. Many Australians are far too familiar with these frustrating and often devastating scams. SMS is now the most frequently reported contact method for scams, and almost $27 million was lost to scams in 2023, as reported to Scamwatch. Sadly, the monetary losses in reality are much higher than this amount, as not all people who fall victim to these scams actually report it. This almost $27 million is not just a statistic; it represents the loss of the hard-earned savings of many Australians, the reputations of businesses being impersonated and the security of many people's private information.

Through these scams, many individuals may face significant financial losses. This is because people are led to believe that the messages they receive are from well-known companies or brands such as banks, government agencies or retailers. The impacts can be equally devastating emotionally, leading to stress, anxiety and feelings of helplessness as people try to process the financial repercussions of falling for these scams.

SMS scams have become increasingly complex, using techniques such as phishing and spoofing. Phishing involves tricking people into giving away sensitive information by pretending to be a trusted entity, while spoofing involves faking a trusted identity to deceive victims, often as part of a phishing attack. Scammers can impersonate banks, government agencies or popular businesses, making it really hard for individuals to distinguish if the message they receive is genuine or fake. In a time when digital communication is rapidly evolving, the threat of SMS impersonation scams has grown significantly. Immediate and decisive action needs to be taken, which is precisely what this bill aims to address.

The introduction of the Telecommunications Amendment (SMS Sender ID Register) Bill 2024 represents a proactive approach to stop the risks of SMS scams by establishing a thorough framework that is able to confirm the identity of legitimate SMS communications. As mentioned previously, one of the key components of the bill is the requirement for ACMA to establish and maintain a register of legitimate sender IDs. This register acts as a vital tool that will help to verify the legitimacy of SMS senders, which in turn will minimise the fraudulent messages. The bill provides ACMA with the flexibility to either directly manage the register or engage a contracted provider to partially or wholly maintain it. This flexibility will ensure the register can be efficiently managed by using external expertise to maintain its efficiency and reliability. It also gives ACMA powers to make determinations by legislative instrument. These instruments are crucial for outlining the specific requirements to access and administer the register. It will ensure the register operates seamlessly and transparently, which will provide a clear pathway for people and businesses to comply with its standards. The instruments will be created with a high attention to detail, ensuring all operational aspects are in place before the register is implemented.

Along with the register, the bill mandates the creation of an industry standard for telecommunications providers managing SMS traffic. This standard will require telcos to verify SMS messages using sender IDs against the register to determine their legitimacy. If a sender ID is found to be unregistered, the telecommunications provider may be obliged to block the SMS or tag the SMS as potentially fraudulent. This will act as a critical frontline defence against SMS impersonation scams, which means only verified communications reach the Australian public. Once the framework is operational, the register will be a reliable platform for legitimate businesses to register their sender IDs. By reducing the frequency and impact of SMS impersonation scams, the register not only protects Australians but also disrupts bad actors looking to exploit many vulnerable Australians.

The Albanese Labor government is not naive in thinking the register will provide a silver bullet against all future SMS impersonation scams. We know scammers will consistently change tactics and use new methods to contact and trap would-be victims. This is why the bill has in-built provisions to allow the government to respond quickly. The bill provides for the Minister for Communications to make determinations in the future by way of legislative instrument, which will help respond to a changing scam landscape. This will allow the minister to determine future communications services other than SMS and MMS which may use sender identifications in the future.

As technology continues to evolve, new forms of communication services may emerge that could use sender identifications. The minister will have the power to recognise and include those future services under the regulatory framework. This will ensure that any emerging technologies such as messaging applications or other digital communications platforms are not left unregulated. The minister will also be able to expand the definition of 'sender identifications'. Currently, sender identifications are typically limited to letters, numbers and symbols. However, technological advancements may include new types of identifiers such as emojis, images or even biometric markers which could be incorporated into sender IDs. The minister will have the authority to determine which of these new elements can be included in sender identifications, allowing for a flexible and adaptive regulatory environment.

Lastly, the minister will also be able to determine additional relevant information for the register. The register currently focuses on accepted sender identifications, but there may be other relevant details that could improve its effectiveness. The minister will have the discretion to identify and mandate the inclusion of additional information on the register. Giving the minister this authority enables the government to stay ahead of technological trends and potential threats in the digital communication landscape.

In February 2023, ACMA conducted targeted consultations with key stakeholders, including telecommunications providers, government agencies, merchants and consumer organisations. After ACMA conducted their consultations, a public consultation took place during February and March of this year to get feedback on whether the register should be mandatory or voluntary. Both of these consultation periods have helped to guide the minister's decisions about this bill, to ensure the register is both effective and aligned with the needs of the community. ACMA are expected to hold further targeted consultations on draft legislative instruments. This again will help to refine the finer details of the register's processes, ensuring a strong framework that will help to protect the Australian public.

In the 2023-24 budget we committed to providing $86.5 million for the first step of a coordinated, whole-of-government approach to addressing the rise of scams. Through its Fighting Scams initiative, the Albanese Labor government has committed a further $67.5 million over four years from 2024-25 to combat scams and protect Australians from financial harm.

My colleague the member for Whitlam has played a significant role in helping to combat scams. Under his leadership, the Albanese government has implemented several key initiatives to protect Australians from fraud and scams. He has actively organised and hosted numerous forums across the country, focusing on educating and empowering Australians to stay vigilant against scams. These forums are designed to raise awareness about the evolving tactics used by scammers and to provide practical advice and information on how to protect personal information and finances.

We are introducing mandatory industry codes specifically designed to combat scams. Along with this, ACMA will be empowered to enforce compliance with the telecommunications industry antiscams code. This code is a vital tool which requires all telecommunications providers to identify, trace and block phone and SMS scams. These code rules have already produced significant results, with over 1.9 billion scam calls and 533 million scam texts blocked by the end of March 2024. This is a huge achievement and really shows the success of our government's efforts by working with industry partners to combat scams.

In the last budget we established the National Anti-Scams Centre, or NASC. This year the NASC will be launching a national campaign aimed at educating Australians on how to identify and protect themselves from scams. The NASC is housed within the Australian Competition and Consumer Commission, or ACCC, and has been operational since July last year. This centre plays a very important role by helping coordinate national campaigns against scams, providing resources and support to people who have fallen victim to scams and fostering partnerships with industry and law enforcement agencies. The NASC's educational campaign will be instrumental in raising awareness and giving Australians the knowledge and tools to be able to recognise scams and avoid falling victim to them.

Together these initiatives that the Albanese Labor government has implemented, along with this bill, represent a comprehensive and robust approach to combating scams in Australia. We are firm in our commitment to protecting Australians from financial harm and we will continue to work tirelessly to ensure that all Australians can live in a secure and trusted digital environment.

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