Telstra fined $1.5 million after customers put at risk

Telstra's non-compliance with identification requirements put consumers at risk of real harm. (Joel Carrett/AAP PHOTOS)

Telstra has been slapped with a $1.5 million penalty for putting customers at risk of being scammed and falling victim to fraud.

Telcos are required to protect customers by verifying identities through multi-factor ID authentication before allowing them to proceed with transactions that could compromise their accounts, like password resets or requests for a replacement SIM card.