Communications Alliance has finalised a new industry code, which aims to protect better customers against fraudulent transactions by strengthening customer authentication.

While the new code covers existing customer authentication, it shall work parallel with other industry codes to minimise the number porting fraud. The other codes it aims to tandem with include the pre-port verification standard and reducing scam calls industry code.

The code is ready to be submitted to the Australian Communications and Media Authority for registration. As soon as the ACMA approves it, the code is set to take effect in April 2022.

One industry guideline encompassed in the code covers anti-fraud measures that will be kept non-public. This will be done so that fraudsters won’t be alerted of the techniques that will be used against them.

In parallel to this, the telecom service providers will be required to help protect their customers. One way of doing so is by publishing information on their website on how customers can protect themselves from unauthorised transactions. The customer-facing staff of these telecom service providers should also be well-versed in customer authentication measures and security practices.

Communications Alliance CEO John Stanton said that the code integrated various feedback from key stakeholders. This is because they included reviews from the Telecommunications Industry Ombudsman and consumer groups during the consultation period.

Stanton said that “The code and guideline provide a common set of principles for CSPs to use, to put strong authentication procedures in place, consistent with the level of risk of harm, while also enabling some operational flexibility.”

“The measures have a particular focus on preventing high-risk transactions from actions that could result in a customer losing access to their telecommunications service,” he further added. 

He then said that “This is the latest in a series of anti-fraud initiatives from industry over the past 12 years, and an important part of the overall framework to protect customers from the rising scourge of attempted scams and fraud by criminals overseas and locally.”

Alongside this, the CEO praised the efforts of the members of the Comms Alliance Operations Reference Panel. Alexander Osborne of TPG Telecom spearheaded this panel.

According to the Australian Competition and Consumer Commission’s Scamwatch, it is estimated that Australians lost a record $211m to scams in the first nine months of 2021. The phone-based scams accounted for the majority of the reports filed.