Enroll Course

100% Online Study
Web & Video Lectures
Earn Diploma Certificate
Access to Job Openings
Access to CV Builder



online courses

Pressure Builds for Compulsory SMS Anti-Scam Register

business . 

The debate over how to tackle the growing problem of SMS scams in Australia has intensified, with key stakeholders including banks, telecommunications companies (telcos), and government bodies weighing in on the establishment of a mandatory sender ID registry. The crux of the issue lies in whether participation in such a registry should be mandatory or voluntary for Australian organizations. The government has taken an interim step by proposing legislation that would grant the Australian Communications and Media Authority (ACMA) the power to establish and manage an SMS sender ID registry. This move follows a limited pilot program initiated in December 2023, which highlighted the need for broader business involvement—a step that would necessitate new legislation.

Despite significant backing from industry players—89 percent of feedback from the industry supports mandatory registration—the government has yet to make a final decision. Communications Minister Michelle Rowland acknowledged the strong industry feedback but remained noncommittal about whether the registry would ultimately be mandatory or voluntary. The legislation is seen as a foundational step, with the government considering all submissions from a recent consultation process to inform its final decision, including aspects such as costings and implementation details. Minister Rowland emphasized that the registry would protect well-known brand names from being imitated and make Australia a more challenging environment for scammers.

The government has committed $10 million over four years to fund the registry, drawing inspiration from similar successful models overseas. This commitment includes the pilot program and subsequent consultations, which began in February this year, to determine the optimal approach for the registry. Submissions from major stakeholders such as NAB, Australia Post, Commonwealth Bank, Optus, and TPG reveal a strong preference for a compulsory registry for businesses that send SMS communications to their customers. The proposed register would allow telcos to verify whether messages being sent under a brand name are from legitimate sources, thereby enabling them to block illegitimate messages.

Banks such as NAB and CBA have advocated for the mandatory enforcement of "alpha tags," which are alphanumeric identifiers used to represent a brand in SMS communications. CBA has argued for even broader measures, including a register for specific phone numbers used in various digital banking operations, such as SMS short codes. Participating in the pilot alongside telcos like Telstra, Optus, TPG Telecom, and Pivotel, CBA raised concerns that mandatory enforcement of a registry might deter organizations from using alpha tags, potentially leading to customers receiving messages from unknown numbers. To mitigate this risk, CBA suggested that telcos should limit the volume of SMS messages from businesses without registered alpha tags.

Bendigo and Adelaide Bank have also weighed in, arguing that a voluntary registry would place an undue burden on consumers to determine the legitimacy of branded SMS messages. The banks' position underscores the need for a compulsory system to ensure that consumers can trust the messages they receive from recognized brands.

Scams via SMS have become a significant issue in recent years, with fraudulent text messages causing over $26 million in losses in 2023 alone. Telcos have expressed unanimous support for mandatory registration, although they noted that some businesses have been dismissive of the scam text issue. Optus, for instance, pointed out that many prominent brands have been reluctant to protect their brands against scam SMS through existing voluntary schemes. The company argued that a voluntary approach has not been effective, as many brands continue to exhibit an unwillingness to safeguard their brands from misuse. Consequently, Optus considers a mandated registration scheme necessary to protect consumers from scam messages.

TPG Telecom echoed this sentiment, emphasizing that only a mandatory, trusted, closed ecosystem for sending alphanumeric sender ID SMSs would lead to a significant reduction in scam communications. The telcos' unified stance highlights the urgency of implementing a robust system that can effectively combat the rising threat of SMS scams.

The debate over the mandatory vs. voluntary nature of the registry is pivotal. A mandatory registry would compel all businesses that send SMS communications to register their sender IDs, ensuring a higher level of security and trust. This approach would make it easier for telcos to identify and block fraudulent messages, thereby protecting consumers from scams. On the other hand, a voluntary registry might not achieve the same level of compliance, leaving gaps that scammers could exploit.

The government’s interim step of enabling legislation to grant ACMA the authority to establish and run the registry is a crucial move towards addressing the issue. However, the final decision on whether the registry will be mandatory or voluntary will significantly impact its effectiveness. The strong industry support for mandatory registration suggests that this approach would be more effective in curbing SMS scams. The government's commitment to funding the registry and the pilot program demonstrates its recognition of the problem and its willingness to invest in a solution.

In conclusion, the establishment of an SMS sender ID registry in Australia is a critical step towards combating the growing problem of SMS scams. The strong support from banks, telcos, and other stakeholders for a mandatory registry underscores the need for a robust system that can effectively protect consumers and businesses from fraudulent messages. The government’s decision to grant ACMA the power to establish and manage the registry is an important interim step, but the final decision on the mandatory vs. voluntary nature of the registry will determine its ultimate success. A mandatory registry, supported by comprehensive legislation and industry cooperation, is likely to provide the most effective solution to the problem of SMS scams, ensuring a safer and more secure communication environment for all Australians.

Related Courses and Certification

Full List Of IT Professional Courses & Technical Certification Courses Online
Also Online IT Certification Courses & Online Technical Certificate Programs