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Internet marketing service Burst SMS – the trading name of messaging company Known – has been found to be in breach of anti-scam rules after allowing scammers to operate under the names of established brands.
The Australian Communications and Media Authority found that scammers were taking advantage of Burst SMS’s free trial offer, which allowed customers to send up to 10 messages each day. However, the messages were sent without any oversight or checks on behalf of Burst SMS.
Subsequently, scammers were able to send 108 messages over a month-long period using the text-based sender IDs belonging to otherwise “reputable businesses”.
The Reducing Scam Calls and Scam SMs Code requires telecommunications operators to gather evidence that customers have legal reasons to use text-based sender IDs.
“Scammers will take advantage of any small crack in the system, and on this occasion, they took the opportunity opened up by Burst’s free trial offer,” said Nerida O’Loughlin, ACMA’s chair, in a statement.
“Every text that contains a link should be treated with caution until you are sure it is legitimate. If there is any doubt, then the best course of action is to report and delete the message.”
Burst SMS has been directed to follow the rules or face further action, up to being brought before a Federal Court.
According to the ACMA, scams are a “compliance priority”, and fines of up to $250,000 could be leveraged against those in breach of the code.
Three other Australian telcos were found to be in breach of the code in May 2023 after being used by scammers to send out malicious SMS messages. Phone Card only incurred a warning, while Infobip and Sinch were each given formal compliance directions.
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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