Australian MVNO hit with fine for scam rule breaches

Australian mobile virtual network operator Southern Phone has paid more than AUD2.5 million in penalties for repeatedly breaking anti-scam rules, the largest fine of its kind issued by the Australian Communications and Media Authority (ACMA). An investigation found the company failed to follow identity verification requirements on 168 occasions between July 2024 and February 2025, allowing scammers to take control of customers’ mobile numbers and access bank accounts, with reported losses of AUD393,000.

ACMA member Samantha Yorke said the size of the fine reflects the seriousness and scale of the company’s failures, noting the security gaps went unnoticed for over a year. On top of the penalty, Southern Phone has committed to a 36‑month court-enforceable undertaking, which includes an independent review of its processes, regular security testing, and ongoing reporting to the regulator. The operator, which mainly uses Optus’ network, was founded in 2002 with AUD4.8 million in government funding to improve affordable telecoms in regional areas.