Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

I rise today to speak on the Telecommunications Amendment (SMS Sender ID Register) Bill 2024. This is a crucial piece of legislation aimed at protecting Australians from the pervasive threat of SMS scams. This bill represents a vital step in our broader strategy to combat scams, specifically targeting SMS fraud, where scammers send messages that appear to be from well-known brands such as banks, government agencies or retailers.

In recent years we have been bombarded by a burst of texts from individuals posing as reputable organisations. These might include a text from Australia Post requesting payment of a small customs fee or a message from Linkt claiming you have an outstanding toll invoice even if you haven't driven on a toll road. These scams not only are financially devastating but also cause significant psychological distress and erode trust in digital communications.

This bill will establish a SMS sender ID register managed by the Australian Communications and Media Authority. By creating a register of sender IDs, we aim to protect consumers from being deceived and to safeguard the reputation of legitimate brands and agencies.

The scope of the problem we are addressing is immense. In 2023 alone, almost $27 million was lost to SMS scams reported to Scamwatch. The actual losses are likely much higher, as not all scams are reported. It is difficult to imagine an Australian who hasn't received one of these fraudulent text messages claiming to be from a bank or a toll road operator and aiming to steal their money or personal information.

Over the past year, significant progress has been made by the government. Data released by the ACCC in April 2024 indicates that estimated scam losses were down 13.1 per cent in 2023 compared to 2022. This reduction is encouraging, but we acknowledge that Australians are still losing too much to scammers. There is no silver bullet to eliminate scam activity. Scammers will inevitably adapt and employ new methods to target victims. The formal creation of this register will bolster our existing antiscam measures. Once operational, this register will reduce the frequency and impact of SMS impersonation scams on Australians, restore confidence in SMS as a communication channel and ultimately make Australia a harder target for scam activity. A pilot register has been operational since last year, generating valuable insights that have informed this bill.

This bill is the next formal step in creating an SMS sender ID register, which, once fully operational, will offer better protection for consumers and enhance brand protection for legitimate businesses and entities using SMS sender IDs. The main elements of this bill are as follows: a requirement for the ACMA or a contracted service provider to establish and maintain the register; a two-step registration process specifying how entities may apply to the ACMA for approval to register one or more sender IDs; provisions for a deferred commencement date to allow ACMA time to finalise the technical and operational aspects of the register; authority for the Minister for Communications to determine by legislative instrument other communication services that may use sender IDs in the future; and hybrid decision-making, where decisions based on objective criteria can be made by computer programs, while decisions requiring evaluative judgements are made by humans.

It is important to understand the broader context in which this bill is being introduced. The Telecommunications Amendment (SMS Sender ID Register) Bill 2024 is a crucial component of the Albanese Labor government's approach to combating scams. The establishment of the register complements rules registered by the ACMA in 2022, which successfully blocked more than 530 million scam texts between July 2022 and March 2024. This bill is also part of the broader agenda to combat scams, including the establishment of the National Anti-Scam Centre, a world-leading partnership between government and industry designed to disrupt and stop scammers in Australia. Additionally, the introduction of a scams code framework requires telcos, banks and digital platforms to prevent, detect and disrupt scams. The scams targeted by this bill involve fake text messages that appear to come from trusted sources. These SMS scams use a sender identification—sender ID—in the message header that looks like that of a well-known company or brand. Unfortunately, people receiving these SMS impersonation scams are often tricked into responding or taking actions suggested by these text messages, leading to the theft of personal information or money.

The establishment of the SMS Sender ID Registry will require the ACMA to establish and maintain a register of legitimate sender IDs. The bill confers powers on the ACMA to make a determination setting out further requirements for access to the register and its administration and operation. The ACMA will also create an industry standard for telecommunications providers who manage SMS services. This standard will require telcos to check whether a sender ID is on the register and whether the sender is the registered party. If not, the telco could be required to block or tag the SMS as fraudulent. Once the framework for the register is fully established, businesses and entities will be invited to apply to have their sender IDs placed on the register. Whether the register will be voluntary or mandatory is yet to be determined and is not the focus of this bill. Following that decision, rules will be made to bind relevant parties of the industry. This mechanism is not a feature in the bill and will be addressed by existing powers in the Telecommunications Act 1997.

The deferred start date for this bill will accommodate the fact that there are details still under consultation. The register will need to deploy a complex IT system capable of interacting with current systems used by the telecommunications industry, and it will need robust privacy and security settings.

The bill provides for a hybrid decision-making process, allowing some automated decision-making through the use of computer programs, while decisions requiring evaluations and judgement will be made by humans. The bill includes measures to reduce the risk of automated decision-making, such as oversight by the ACMA and the ability to substitute any incorrect decisions made by a computer program.

This bill is testament to our commitment to protecting Australians from the ever-evolving threat of scams. It's a crucial measure that will enhance our antiscam framework, protect consumers and restore trust in digital communications. We know that scammers will try different tactics and use new methods to contact potential victims. This is why the bill includes provisions for the Minister for Communications to make decisions that respond quickly to the changing scam landscape.

The development of this bill has been informed by two rounds of stakeholder and public consultations. The ACMA initially undertook targeted consultation in February 2023 with key stakeholders, including telecommunication providers, government agencies, merchants and consumer organisations, to examine their support for the establishment of a register. This broad public consultation was undertaken in February and March 2024. It is expected that the ACMA will undertake further targeted consultation on draft legislative instruments required to settle the finer details of the register processes.

This builds on the government's previous work in combating 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. This funding will support additional measures, including the introduction of mandatory industry codes to combat scams, and a campaign by the National Anti-Scam Centre to help Australians identify and protect themselves from scams. The funding provided in the May budget is in addition to the $86.5 million over four years allocated in the May 2023 budget, which included funding to establish the National Anti-Scam Centre in the ACCC from July 2023.

The telecommunications industry antiscam code requires all telecommunication providers to identify, trace and block phone and SMS scams. These code rules have resulted in over 1.9 billion scam calls and 533 million scam texts being blocked by the end of March 2024.

The Telecommunications Amendment (SMS Sender ID Register) Bill 2024 is the next step in our commitment to protecting Australians from the ever-evolving threat of scams. It is a crucial measure that will enhance our antiscam framework, protect consumers and restore trust in digital communications. I urge my colleagues in this House to support this legislation. I commend the bill to the House.

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