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An Australian telco firm has been fined almost $200,000 after authorities discovered that 1787 customers were affected by identity fraud.
The Australian Media and Communications Authority discovered that Circles.Life digital telco did not run the correct identity authentication when transferring mobile phone numbers to its services.
The Australian Communications and Media Authority discovered 1787 industry rule breaches when it investigated Circles.Life SIMs, acquired between August and December 2021.
CEO at Circles Life Australia, Nicholas Demos, admitted in a media release that 42 people fell victim to fraud, including hacked email accounts and being locked out of banking information—at least seven consumers experienced financial losses.
“Circles.Life breached the Telecommunications Consumer Protection (TCP) Code by failing to take reasonable steps to protect its customers from the risk of identity fraud,” said acting chair Andrea Cattaneo.
“This resulted in 1787 customers being potentially exposed to identity fraud.”
Circles.Life has since implemented several changes to its processes to ensure that customers are better protected against identity fraud.
The Australian Communications and Media Authority has fined Circles.Life $200,000 for breaching the Telecommunications Consumer Protection (TCP) Code. The case is the first time the authority has used its new powers under the code to impose a financial penalty.
“We take our obligations under the code very seriously and have put in place several changes to our processes to ensure that our customers are better protected against identity fraud,” said Rameez Ansar, co-founder and chief executive officer of Circles.Life.
“We apologise for any inconvenience or anxiety this may have caused our customers.”
The telco company has also set up a customer care team to provide support to any customers who may have been affected by identity fraud.
“We would like to reassure our customers that we take the protection of their data very seriously and have taken all necessary steps to prevent any further breaches,” Ansar said.
“We have also set up a dedicated customer care team to provide support to any customers who may have been affected.”
The Australian Communications and Media Authority has reminded consumers to be vigilant about their personal information and to take steps to protect themselves from identity fraud.
“Identity theft can have a significant impact on people’s lives, so it’s important that consumers take steps to protect themselves,” Cattaneo said.
“Never give your personal information to someone you don’t know or trust, and be wary of unsolicited calls, emails or text messages asking for your details.”
If you think you have been a victim of identity fraud, you should report it to the Australian Cybercrime Online Reporting Network (ACORN) and your local police station.
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