Louise Miller-Frost (Boothby, Australian Labor Party) Share this | Link to this | Hansard source

As part of a comprehensive range of measures the Albanese government is putting in place to combat scammers, we are also establishing the SMS Sender ID Register. The Telecommunications Amendment (SMS Sender ID Register) Bill 2024 will require the Australian Communications and Media Authority, the ACMA, to establish and maintain a register of legitimate sender IDs. Instead of having to hunt down and eliminate all the fake scammer SMS sources, we will establish a register of those who have been authenticated as legitimate. The register will establish an industry standard for telecommunications providers who manage SMS traffic. The standard will require telcos who manage SMS traffic to check the SMSs that use sender IDs to ascertain 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 operating, the register will decrease the frequency and impact on consumers of SMS impersonation scams. It's good for consumers, but it's also good for businesses. The operation of the register will also increase protections for legitimate brands and agencies against bad actors impersonating them. I know I've been late paying a bill because I thought the messages I was receiving were from scammers. The sender ID registry will disrupt the business models for SMS impersonation scams. It will boost public confidence in SMS as a communications channel. The operation of the register will ultimately make Australia and Australians a harder target for scam activity.

But the Albanese government is not naive in thinking the register will provide a silver bullet against all future SMS impersonation scams. Unfortunately, we know that scammers will invariably change tactics and use new methods to contact and ensnare would-be victims. This is why the bill has inbuilt provisions to allow us to respond quickly. The bill provides for the Minister for Communications to make determinations in future by way of legislative instruments which will respond to the changing scam landscape. This will allow the minister to determine if there are future communications services other than SMS and MMS which may use sender identification in the future. The minister can determine whether there is something other than letters, numbers and symbols which may be included in sender identification in the future. And the minister can determine if there is additional relevant information that should be kept on the register in future.

The Telecommunications Amendment (SMS Sender ID Register) Bill 2024 marks an important step in the Albanese government's multipronged approach to combating SMS scams. The May 2023 budget provided $86.5 million over four years to address scams and help keep Australians safe. This funding established the National Anti-Scam Centre in the ACCC from July 2023. It is an innovative, world-leading, public-private-sector partnership to disrupt and stop scammers in Australia. There has been a national campaign by the National Anti-Scam Centre to show Australians how to identify and protect themselves from scams. We've had the Assistant Treasurer in Boothby to run a very popular antiscam forum, and I've spoken to a number of groups about how to protect themselves from scams. In May 2024, through its Fighting Scams initiative, the Albanese 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 further support the introduction of mandatory industry codes which require all telecommunications providers, banks and digital platforms to identify, trace and block phone and SMS scams. To the end of March 2024, these code rules have already resulted in over 1.9 billion scam calls and 533 million scam texts being blocked.

Sadly, scammers are increasingly a part of our modern lives. We have previously been playing catch-up trying to identify and block scammers, and this has been a losing game. The faster we catch them, the faster they set up on a new phone number, a new site or a new business model. This bill aims to help Australians to take control and keep themselves safe by maintaining a register of trusted and verified numbers. I commend the bill to the House.

Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

It's a sad fact that, for many Australians, when a text message comes in, it's not a message from a friend or a family member. Instead, it can often be a scam. Common SMS scams include fake order deliveries, refund scams, scams that suggest you've won a prize, scams that say there's an issue with your payments, impersonation of government websites and impersonation of well-known businesses such as Coles or Linkt.

This bill, the Telecommunications Amendment (SMS Sender ID Register) Bill 2024, is an important step in the Albanese government's multipronged approach to combating SMS scams. It complements rules registered by the Australian Communications and Media Authority which have seen over half a billion scam texts stopped between the middle of 2022 and March this year. The register also complements the Albanese government's establishment of the National Anti-Scam Centre as a world-leading public and private sector partnership to disrupt and stop scam activities and the introduction of a scams code framework that requires telcos, banks and digital platforms to prevent, detect and disrupt scams.

The scams targeted by this bill—the fake text messages—are sent using a sender identification system which makes it look like a well-known company or brand. That can make it more likely that recipients of those text messages are deceived and more likely that they lose money as a result of this insidious scam activity.

The SMS sender ID register bill will require the Australian Communications and Media Authority to establish and maintain a register of legitimate sender IDs and engage a contracted provider to partially or wholly maintain the register. The bill allows for a voluntary or a mandatory register. An industry standard for telecommunications providers who manage SMS traffic will also be made by the Australian Communications and Media Authority. The standard will require telecommunications providers who manage SMS traffic to check SMSs that use sender IDs to ascertain whether a sender is on the register and whether the sender is the registered party. If not, the telco could be required to block the SMS or tag it as fraudulent. Once it's fully established, legitimate businesses will be able to have their sender IDs placed on the register, which will decrease the frequency and impact of SMS impersonation scams and ensure better protections for legitimate brands. One of the problems of scams is that Australians are increasingly ignoring text messages from businesses, some of which are legitimate, for fear that they're receiving a scam message. This register will boost public confidence in text message as a communications channel.

The Albanese government knows that this isn't the only piece of tackling SMS impersonation scams. We know scammers will change tactics. We know they'll use new methods to contact and ensnare would-be victims. That's why the bill has inbuilt protections to allow the Minister for Communications to make determinations by way of legislative instruments which respond to a changing scam landscape. That might include future communications services other than SMS and MMS which might use sender identifications in the future; it might include a thing other than letters, numbers and symbols that might be included in sender identifications in the future; and it might include relevant additional information to accepted sender identifications that should be kept on the register in the future. This bill allows the ACMA to make determinations, by legislative instrument, setting out further requirements for access to the register.

We understand that scammers are using technology very rapidly and that artificial intelligence is allowing pernicious tailored scams which will specifically target vulnerable people, sometimes using personal information about them straight from the web. Allowing the legislation and the register to keep up with this sort of pernicious activity will be critical.

The Albanese government has committed $67 million over four years, starting from 2024-25, to combat scams. That supports measures such as the introduction of mandatory industry codes; the Australian Communications and Media Authority's work in enforcing compliance with the telecommunications industry's anti-scam code; and a campaign by the National Anti-Scam Centre as to how people can identify scams and protect themselves from scams. That's in addition to the $86 million over four years provided in last year's budget, which included funding to establish the National Anti-Scam Centre.

Telecommunications providers need to do more. I was troubled to speak to somebody from a major telecommunications provider recently who said that the reason that you will sometimes receive more scam text messages at night-time is that their people aren't working 24 hours. That needs to change. If these carriers are serious about disrupting scams, they need to be as vigilant against scam messages sent at 12 am as they are against messages sent at 12 pm.

We are doing a lot to block scam attempts, with some 1.9 billion scam calls and 533 million scam texts blocked up to the end of March 2024. I commend Ministers Rowland and Jones for the work that they're doing on this. The Albanese government understands that this pernicious criminal behaviour is costing Australians time and money, and we are doing all we can in order to put an end to scams in our community.

Alison Byrnes (Cunningham, Australian Labor Party) Share this | Link to 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.

Sally Sitou (Reid, Australian Labor Party) Share this | Link to this | Hansard source

Scammers are the scum of our society. They are ruining lives and ripping people off. These criminals aren't wearing balaclavas or wielding a crowbar. Instead, they are sitting anonymously behind their computer screens or at the end of a phone line, often in countries far from here. Every one of us in this place will have met a constituent who has lost extraordinary sums of money to these scammers, and their stories are heartbreaking. As their federal MP, I have been trying to do everything I can to help them get their money back, but in many of these cases, there's very little that can be done for them once the money has been taken. I have been hearing of people who have lost huge amounts of money because they've clicked on a link or they've answered the desperate calls of someone who they thought was their daughter who was in distress and they then sent some money off. It has been so sad to hear about the impact this has had on them.

While scams have been around for a long time, in the last few years they have gotten more sophisticated and more damaging. As technology has advanced, so too have scammers. With more and more of our personal and financial information being stored online, this has meant more opportunities for theft, and none of us are immune from these scams. The stereotype of someone who would get scammed is often someone who's a bit older and maybe not as digitally savvy, but a 2023 Deloitte survey found that, actually, it was those in the gen Z and millennial cohorts who were more likely to be scammed than their grandparents. Scammers have become so sophisticated that they managed to convince a financial advice columnist for a New York magazine to put $50,000 cash in a box and hand it to a stranger because she thought that person was a CIA agent. This is the level of sophistication that we are now getting to. The piece that she wrote about her experience went viral online because people were sharing their own stories about how they had been scammed.

We have heard of similar experiences from people coming to my office. There was a public school teacher who was scammed of $50,000. There was a young man who had been working to save up for a deposit on his first home. He lost the entire deposit. These are heartbreaking stories, but what is the government doing to help protect citizens against these scams? This bill, the Telecommunications Amendment (SMS Sender ID Register) Bill 2024, is part of a broader suite of measures that the government is working on that are designed to crack down on scammers and reduce scamming losses right across the country. I'm really proud of the work that the Labor government is doing, because we have made this a significant priority in helping to protect Australians.

Foremost in the government's push has been establishing the National Anti-Scam Centre. This is a unique centre that is the first of its kind in taking a proactive approach to fight fraud and scams. It's an innovative partnership that unites government agencies, law enforcement and businesses to deploy cutting-edge technology to block scams right at the source. Importantly, the National Anti-Scam Centre has an education function as well. It will empower communities and individuals by raising awareness and providing practical tips to safeguard against scammers.

The initial findings of the Albanese government's crackdown on scammers have shown some promising results. According to the National Anti-Scam Centre's second quarterly report, scam losses in the period October to December 2023 have almost halved in comparison to the same period just the year prior. Prior to the Albanese government taking office, annual scam losses in Australia exceeded $3 billion, a quadrupling over three years. The amount of $3 billion that was being taken out of people's pockets obviously had a huge impact on their lives, and that problem was growing exponentially before we came to government.

Since our government's intervention, this trend has reversed. In the first six months of the crackdown, we saw significant reductions, with reporting for November 2023 showing a 50 per cent decrease in losses compared to the previous year. This means that the work that we are doing is having an impact. However, we are still losing too much money, and people's lives are still getting damaged by scammers, and we know that there is a lot more work to do.

What I am doing at the local level is ensuring that my community has a good understanding of what scams look like and how they can protect themselves against being scammed. It was a great morning when we held our seniors morning tea recently. The Assistant Treasurer, Stephen Jones, came along to Burwood Public School to speak to seniors directly about how they can protect themselves and their families from being scammed. We had about 150 people in the hall that day, and the Assistant Treasurer asked members of the audience to put their hand up if they had received a scam text, email or online message, and almost everyone in the audience put their hand up. He then asked if anyone knew of anyone who had been scammed, and there were people who still had their hands up. Everyone in that audience had had some interaction with a scammer. That's the unfortunate state of affairs that we currently live in.

But it's not just individuals and families who are vulnerable to scams; it's also businesses. So I invited the then minister for home affairs, Clare O'Neil, to join a small business forum that I held, along with Realeyes business, who had an expert cybersecurity speaker there, to help inform small businesses about how they can protect themselves and their customers from hacks and from being scammed. We want to make sure that we do everything we can to reduce the losses from scams and to make sure that individuals, families and small businesses are not vulnerable to these criminal activities.

It's important to make sure that we minimise the avenues for scammers to approach our community via SMS and MMS, as well as online. According to the department, SMS is now the most frequently reported contact method for scams. As the 'Fighting SMS scams: what type of SMS sender ID registry should be introduced in Australia?' consultation paper has noted, we've all become accustomed to receiving SMSs from businesses and organisations that we trust.

It's estimated that $27 million was lost in scams in 2023 alone, but this figure is likely to be an underestimation, as many scams go unreported. That's why in April 2023, the government announced the establishment of an SMS sender register, alongside the creation of the National Anti-Scam Centre that sits within the ACCC. These measures were complemented by rules introduced by the Australian Communications and Media Authority, which require companies to block scam text messages. We know that during the period from July to December 2022, telcos blocked more than 90 million scam texts. That's 90 million scam texts. We were getting these multiple times a day. This government knows that we have to keep building on protections for our community, and this is what this bill does.

The establishment of the SMS Sender ID Registry is designed to fundamentally undermine the business model of SMS scammers. It will help to prevent scammers from impersonating brands and organisations and will start to restore public confidence in SMS as a communications channel. Under a potentially mandatory model, all organisations sending text messages with letter based sender IDs to Australian mobile phones would need to register these IDs. This would apply to both Australian and overseas senders. Phone companies would also have to follow new regulations which would require them to either block messages from unregistered senders or add a warning label to these messages saying that they might be scams. For the person receiving the SMS, this would prevent people from receiving a SMS from scammers claiming to be a particular company or organisation. It would allow receivers of a SMS to trust that when a text message says it's from the ATO it is actually from the ATO. Where an entity is not registered, it would require the telcos to send a scam warning alongside it.

There's more work for us to do, but we've already started the really important work of helping to safeguard our community from these scammers. Education is the big piece here to ensure that individuals are not susceptible to falling prey to these scammers. I'm going to continue to hold antiscam forums across my community to help individuals and small businesses keep on the lookout for these scam messages.

If there's anything that I can leave the community with it's that there are three simple things you can do to help protect yourself. The first is to ensure that you have a complicated password by trying to use a passphrase instead of a password. The second is to ensure that you have two-factor authentication; you can set that up to ensure that it is much harder for scammers to access your banking or financial details. The third is to check: if someone were to send you an email or a SMS, instead of clicking through to the link, call the organisation or institution that is trying to get in contact with you. The one thing Lillian, who came to my seniors morning tea where Assistant Treasurer Stephen Jones was speaking about the problem of scams, took out of that antiscam forum was: do not click on the blue link in that email or SMS. In the words of Lillian: 'Keep that in mind. Do not click on the blue link.'

Cassandra Fernando (Holt, Australian Labor Party) Share this | Link to 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.

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

Today I rise to speak to the Telecommunications Amendment (SMS Sender ID Register) Bill 2024. This bill seeks to bolster the security of our communication channels by establishing an SMS sender ID register. The primary goal of this register is to combat impersonation and the subsequent fraud that arises from that impersonation. Bad actors often spoof industry and government brand names in messages, leading to financial losses for businesses and for individuals—sometimes at life-altering levels.

I'm aware of HSBC customers, including a number in my electorate, who have been targeted by sophisticated bank impersonation scams since at least April 2023. I've heard from a significant number of constituents whose lives have been irrevocably altered by the tragic financial losses they have suffered as a result of this disgraceful situation. One received a phone call from a scammer who claimed to work for the HSBC fraud team. The scammer sent messages which appeared to be from HSBC because they appeared in the same text thread as previous messages that constituent had received from their bank. Who wouldn't fall for this scam? Ultimately that scam took control of the account, and the scammer stole almost $50,000 from my constituent. I've spoken of this issue before in the House, and it bears repeating: scammers prey on people who are trying to do the right thing. People can lose their life savings through no fault of their own. The cost of fraudulent SMS activity in Australia in 2023 was about $27 million. This bill should go some way to curbing those losses.

Under the bill, the Australian Communications and Media Authority, or ACMA, or a nominated third party will create and maintain the register. It will cover the short message service, or SMS or texts, and the multimedia message service, or MMS. The bill also anticipates the inclusion of future message services. It needs to be established as soon as is practical.

This register will serve as a repository for legitimate sender identifications—that is, it will enable legitimate services to be identified thus. The bill defines 'sender identification' to prevent misuse. ACMA will have the power to accept or reject registrations and to deregister users. I'm really pleased to see the register has been funded by the government at $10.9 million over four years, with an ongoing budget of $2.2 million. This is a very small investment in the safety of our citizens, many of whom have lost huge amounts of money.

The next critical step in stopping scammers will be in determining whether or not SMS sender identification is voluntary or mandatory. There are pros and cons to both, but I know that 89 per cent of respondents who were involved in consultation around this bill were in favour of a mandatory register, as am I. Under that model ACMA will identify legitimate senders and will enforce compliance. In a voluntary scheme, senders could choose to register but it would be for the telecommunication companies—the telcos—to verify user legitimacy. It's clear that a voluntary scheme could place more risk and more cost on telecommunications companies.

ACMA plans to undertake a cost analysis for both models. The implementation and running costs may fall entirely on the Commonwealth unless ACMA designates telcos as third-party agents. ACMA could perhaps consider a hybrid model in which industry and the Commonwealth share the operating and developmental costs of the register; I know there was a precedent for this sort of model in the late 1990s.

Industry taking the lead in determining the legitimate senders within our telco system could benefit the public in many ways. It could reduce the burden on public funds of the sorts of disgraceful losses we've seen as a result of the activities of these terrible scammers. It could enable more timely intervention at the point of sale and it could well lighten ACMA's regulatory burden by freeing up resources.

The government's efforts to tackle scammers are encouraging, but we still need to do more to strengthen our systems and to resist the growing levels of organised crime behind scams. I reiterate my call for a mandatory SMS sender identification register, and I look forward to the completion of the ACMA analysis of the cost of that model. I look forward to clarification of the government's plans at the time of the third reading of this bill.

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I rise today to speak in support of the Telecommunications Amendment (SMS Sender ID Register) Bill 2024. The humble text message—the SMS, or short message service—was developed long before the wide proliferation of mobile phones in pockets or, as was more likely the case decades ago, in the cars of the majority of Australians. Despite this, the SMS message has remained part of the core functions of mobile services to this very day, surviving well into the age of the smartphone, an age where our lives are all increasingly intertwined with digital communication. In this current age, the trusty text message, unfortunately, may not be as trustworthy as some may believe it to be. Any medium of technology that connects people together opens up the possibility of bad actors exploiting it for the purposes of anything from identity theft to financial fraud, through any number of scams, ranging in levels of sophistication. Many have, it seems, placed a little too much trust in this means of communication, with the cost of that trust being expensive for many Australians and indeed people throughout the world.

The Albanese Labor government is committed to enacting measures to protect Australians from all walks of life, across all domains, with one of those domains now being that small screen we all carry around with us every waking moment. The SMS Sender ID Register is a practical and crucial step to protect Australians from the escalating threat of SMS scams. This bill is not an isolated measure but part of a broader strategy by the Albanese Labor government to enhance digital security across the nation. It complements other initiatives such as the recent enhancements to cybersecurity frameworks, efforts to improve data privacy and the recent establishment of the National Anti-Scam Centre by our government.

This is because our government knows, just like many of Australia's largest companies and telecommunications providers, that the cost to Australians falling victim to these scammers aren't purely economic in nature. Many of these victims—particularly those who are older Australians or those with a culturally and linguistically diverse background, for example—would also suffer further cost by way of loss in their level of trust and faith when using technology and digital communications, whether that be to stay connected with their families and peers, to stay engaged with their community and the outside world or to engage with business and government agencies. Many feel helpless with using newer forms of technology to begin with, and, when they realise they have been scammed, when it is already too late, many feel too ashamed to contact authorities or to speak with their families about what happened.

This is another reason why, when we hear statistics and figures relating to scams perpetrated against Australians, the volume of economic costs caused are, to a degree, always going to be understated. Many, conceding defeat or still in a state of confusion and bewilderment over what happened, would not easily speak up about what has happened to them and are known to be a victim only to themselves and the malicious individuals who preyed upon them. They suffer in silence, sometimes tens to hundreds of thousands of dollars worse off, showing a public face of strength to friends and families and going without to keep up the appearance of things being business as usual.

These things can start with something that would appear, to the untrained eye, to be quite innocent. Most Australians aren't targeted by these kinds of scams in a direct way. This is happening at a grand scale. Text messaging scams can appear simplistic. To many of us, they are an occasional nuisance, but they have grown to become significantly more sophisticated. Scammers have adapted their tactics, using methods such as number spoofing to impersonate legitimate businesses and deceive unsuspecting Australians.

I was going through some blocked messages the other night, and it was quite easy to find numbers that looked quite plausible and perhaps—to one in every thousand or so individuals who receive the message—legitimate. First there was one starting off with 'CommBank Security: Your account has a suspicious transaction.' Next there was 'AusPost: There is an issue with your parcel.' Then there was one that wasn't about a delivery or banking: 'You are about to miss a deadline on your toll payment. You can fix this here.' All of them were followed with a shortened link that could lead to anything from malicious spyware attempting to install on my device or being sent through to a website relatively similar to that of who they claim to be.

I don't bank with CommBank, I very rarely have parcels delivered to my home, and in South Australia we don't have any tollways, but, if others were subjected to these scam messages, it would be easy to fall for them. Further, I had a message the other day on my personal device from someone claiming to be my daughter: 'Hi Dad. I dropped my phone. Can you text me your number?' Well, how did you get my number to be able to text me a message like that? It's easy for us to have a lapse in judgement and hit that link or send that message and confirm the connection. Links go to a website asking me to log in, and I could potentially end up entering personal information and financial details that could lead to my identity being stolen or my bank account being drained. Only after seeing my account emptied would I then realise that maybe the error message that had popped up, advising me to transfer funds through to a secure account, wasn't that secure and maybe wasn't that real to begin with. But, by that time, the money is long gone, the trail is relatively cold. Often, the humiliating process of coming to terms with what happened runs parallel to an individual reaching out to agencies, insurers and banks, trying to make it right again and pick up the pieces. Many people lose their rainy day money or even their life savings—everything. Sometimes it's lost just to a digital portal rather than to any slick social engineering to close the deal on an unsuspecting mark.

If I had clicked on the link, who knows what would have happened, but, in the wake of such an experience, I assume that most, if not all, text messages popping up on my phone are fraudulent. Many end up significantly disconnected from societal participation as a result, whether it be something as innocuous as a friend or family member sending you a text—how can you be sure? The scammer said they were from the bank; the message said it at the top of the message, after all.

Many services that we use every day also use text messages to communicate with us. It could be a doctor's surgery reminding me of an upcoming appointment, and they want me to confirm my time with them. It could be a company or even a government agency sending me an SMS with a code as part of a two-factor authentication, which is, after all, the way we sign into our Parliamentary Expenses Management System. But how can I be sure that the code I'm getting from the Department of Finance is really from them? This is why there is a need for measures to address ways of combating the prevalence of this type of scam. Hopefully the process that led to the introduction of the Telecommunications Amendment (SMS Sender ID Register) Bill 2024 acts as an example of how adopting a collaborative approach, whereby industry, government, regulatory agencies and law enforcement work together, can restore public trust within society as well as in the common text message.

I mentioned the National Anti-Scam Centre earlier. It provided me, through their website, with a very sobering picture of the state of play with scams in Australia. Across the 2023-24 financial year alone, Australians reported the loss of over $326 million to scams, with, roughly, 288,000 reports. SMS scams in that time cost Australians $18 million. Although the percentage of the financial loss wasn't as high as other methods that scammers can utilise, SMS scams did comprise 36 per cent of total reported incidents during that financial year, with the three biggest methods of attack being investment scams, phishing scams and romance scams. Close to 51 per cent of all reported SMS scams losses were incurred by individuals that were 55 years or older. Doing nothing or merely having educational or awareness campaigns is the sole method of combatting these incidents, although I am—and I'm sure a number of my constituents who have received one from my office are—grateful to have a copy of the Little Black Book of Scams that is published by the ACCC. Having this level of awareness in the community about scams is important, but having a mechanism that will prevent and deter SMS scams backed by telcos, large institutional companies and government is something that was called for, and, thus, the journey to the establishment of the SMS sender ID registry began in earnest.

The SMS sender ID registry will require businesses to register their sender IDs with the Australian Communications and Media Authority—ACMA. This process will create a safeguard against fraudsters who attempt to impersonate legitimate entities. Businesses will submit their sender IDs and associated details to a centralised database held by ACMA, ensuring these IDs are protected from unauthorised use. Think of the SMS sender ID register as a digital shield—fortified, resilient and ever vigilant—protecting Australians from the king tide of fraudulent messages. This shield must be both flexible and scalable, capable of adapting to future technological advancements, while handling a large volume of sender IDs.

ACMA's role in the process is critical. The authority will verify and authenticate sender IDs by cross-referencing businesses' details with existing records to ensure legitimacy. The system will employ technical safeguards to prevent duplication or misuse of registered IDs, maintaining the integrity of this registry. This, alongside the continuous monitoring of SMS traffic, will allow ACMA to detect violations and to respond to violations, including by issuing fines and suspending sender ID privileges when necessary.

The development and implementation of this bill has been supported by key stakeholders across various sectors. Major telecommunications providers such as Optus and TPG recognise the necessity of a mandatory SMS sender ID register. These companies understand that maintaining consumer trust is crucial, and they are committed to supporting measures to enhance this trust.

The financial sector has also been a strong advocate for this legislation. Banks and financial institutions are on the front line of the battle against scams, witnessing firsthand the devastating impact these scams can have on their customers. Institutions such as Bendigo Bank, Adelaide Bank and NAB have stressed the importance of a centralised, enforceable system to combat these sophisticated scams. Their backing, along with that of the telecommunications companies, greatly improves the SMS Sender ID Register's potential to protect customers and preserve the integrity of the financial system.

Quotes from industry leaders reflect the widespread support for this initiative. As one industry leader put it, 'The SMS Sender ID Register is a crucial step forward in protecting our customers from the sophisticated scams that threaten their financial security every day. We fully support this initiative and look forward to working with the government to ensure its success.' Such endorsements highlight the importance of this legislation and the collaborative effort required to make it effective.

Small businesses, often disproportionately affected by scams due to limited resources, will also benefit significantly from this legislation. The strength of this bill lies in its collaborative development. By engaging with a wide range of stakeholders, we have crafted a framework that addresses the immediate threat posed by SMS scams, while considering the needs and concerns of all affected parties.

The feedback received from stakeholders highlighted the importance of a mandatory register as opposed to a voluntary one. A mandatory register ensures that all SMS service providers participate in the system, creating a comprehensive and effective safeguard against scams. Stakeholders also emphasised the need for robust verification processes to prevent misuse of the register, and the bill reflects these recommendations by incorporating stringent identity checks for all registrants.

This bill is a definite step in the right direction, from the collaborative nature of combating fraudulent activities through to finding the best mechanism. Given where we are today, this proposed SMS Sender ID Register was considered the best fit to do so. It should act as a litmus test for solutions to combating the many other nefarious mediums that individuals attempt to use in order to defraud everyday Australians. As scammers and other fraudulent and malicious actors out there—both at home and abroad—adapt and get smarter and more sophisticated in the manner and methodology of how they prey upon ordinary Australians, then so too must we.

This is why the Telecommunications Amendment (SMS Sender ID Register) Bill 2024 represents a vital step forward in safeguarding Australians from the ever-growing threat of SMS scams. By establishing this register, we are closing the door on scammers who seek to exploit our telecommunications networks. Together—government, industry, law enforcement and every Australian—we can build a safer, more secure digital future.

I commend this bill to the House. As an aside, to all members who haven't picked up a copy of the ACCC's Little Black Book of Scams, I highly recommend you do so. It is a great tool that many of our constituents would thank us for making available to them at our offices. I thank the House.

Anne Stanley (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

I rise to make my contribution on the Telecommunications Amendment (SMS Sender ID Register) Bill 2024. In the past few years we have seen a significant increase in scams as well as an increased focus on how to better combat them. They have touched the lives of every Australian. Everyone knows someone who's been scammed, or they have been scammed themselves. Scams come in all shapes and forms. It could be by email, SMS, a phone call, social media or even a knock on the door.

At least once a day, Australians are confronted by scams in some form, and the most common types are those through SMS and phone calls. Australians often get a call from an unknown number, or a misspelt text message claiming to be from a major company. This presents a significant issue, as phone calls and text messages are often the only way to contact companies and we are often waiting for messages and phone calls from them. While some are more obvious than others, it can be really difficult to discern what is real and what is fake.

Only recently the Australian Communications and Media Authority, ACMA, reported a rise in SMS scams impersonating companies like Coles, Telstra, Optus and Woolies, relating to loyalty and reward points. Of course they are by no means unique or unfamiliar to Australians. In 2024 over 95,000 scams were reported to the National Anti-Scam Centre's Scamwatch, and, since new rules were implemented in 2022 by ACMA, more than 533 million scam texts between July 2022 and March 2024 were blocked, helping to stop those scams before they reached Australians.

The introduction of this bill marks the next step in the Albanese government's ongoing effort to protect Australians from scams. It builds on the government's commitment to a further $67.5 million over four years to combat scams. This will support the introduction of mandatory industry codes to combat scams; the ACMA work in enforcing compliance with the telco industry's antiscams code; and a campaign by the National Anti-Scam Centre, which was established on 1 July 2023, on how Australians can identify and protect themselves from scams. This funding is in addition to the $86.5 million over four years provided in the May 2023 budget, which included funding to establish the National Anti-Scam Centre. Already our efforts have helped combat scams, with recent data indicating that from 2022 to 2023 scam losses declined by 13.1 per cent.

This bill, once passed, will require ACMA to establish and maintain an SMS sender register, delivering on our April 2023 announcement to establish the register. The bill was informed by two tranches of stakeholder and public consultation by ACMA and the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, which gathered feedback from telecommunications providers, government agencies, merchants, consumer organisations and the public. The register, once established, will play a crucial role in fighting SMS scams by helping Australians better identify and differentiate between legitimate businesses and scams. Scams that will be targeted by this register are those text messages that are sent using a sender ID in a message header which looks similar to well-known companies that Australians may interact with daily. There are an estimated 300,000 legitimate sender IDs in use in Australia which could potentially be registered, and this legislation lays the groundwork necessary for that registration.

Explicitly embedded in this bill are essential elements for applications, the refusal of applications and the removal of entities from the register. ACMA will be tasked with setting up further requirements for access to the register and for its administration and operation before the register commences. ACMA will establish an industry code for telecommunications providers who manage SMS traffic, requiring telcos who manage that traffic to check if an SMS using a sender ID is on the register. If it's not, the telco will be required to block or tag the SMS as potentially fraudulent.

To ensure that ACMA have the appropriate time to develop further requirements for access to the register, establish the industry code and procure the necessary ICT platforms to establish the register, the bill allows for a deferred commencement date. The deferred commencement date will accommodate the decision that will be made later this year on whether the register will be voluntary or mandatory. To allow for the time needed by ACMA to finalise these preparations, the bill provides that ACMA must establish the register 'as soon as practicable', allowing the necessary flexibility to prepare for the commencement of the register. It is expected that it will be operational by late 2025 and, once fully operational, will make Australia a harder target for scam activity.

Of course, the Albanese government does not think the register will be a silver bullet against SMS scams. We know that scammers will continue to employ new methods, which is why provisions in this bill will allow the government to respond quickly in the face of these growing threats. The bill will allow the minister to determine future communications services, other than SMS and MMS, which may use sender identifications; something other than letters, numbers and symbols which may be included in sender identification; and relevant information additional to accepted sender identification that should be kept on the register.

Since 2022, the Albanese government has taken a multipronged approach to combating scams. As a result we have seen a reduction in the number of Australians losing money to scams. But the number is still far too high, and our government will continue to fight the scammers. This bill is the next step in our plan to help protect Australians. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.