Telstra has launched new technology that automatically scans all text messages for malicious content on its mobile network in a move aimed at halting the explosion in scam SMS messages.
The company’s outgoing CEO, Andy Penn, said in a blog post on Thursday the company had witnessed massive growth in reports of scam text messages – particularly the Flubot scam targeting Android devices, which installs malware on the phone to steal credit card and other personal information.
He said in 2021 Telstra had 11,000 reports of malicious texts to Android devices, compared to just 50 in 2020.
“That’s why we’ve turned on a brand-new feature to find and block SMS scam messages with suspicious links as they travel across our network and stop many of them before they reach your mobile device,” he said.
“We know it’s working because our people have been on an internal pilot program for the last three months. Around two and a half thousand employees have taken part and we’ve been successful in detecting and blocking hundreds of scam SMS messages every day.”
The technology has been rolled out and switched on for every mobile device on Telstra’s network – including those signed up to other providers using Telstra’s mobile network like Belong.
The text messages will be automatically scanned on Telstra’s network before being delivered to customers, and if it looks suspicious – with malicious links or similar patterns and characteristics to other messages – Telstra will block the message from being delivered.
Penn said that in some cases, specialists would have to review the contents of text messages that might have been wrongly flagged, but the specialist will not be able to see the details of the intended recipient of the text message.
There will also be protections to ensure businesses, government departments and emergency alert text messages don’t get flagged and blocked. Penn said while the new filter will block a significant number of scam texts, it is not foolproof, and scammers constantly evolve their tactics.
Those who wish to opt out of the system can SMS 0438 214 682 with the words FILTER OFF, or FILTER ON to opt back in.
A spokesperson for Optus said the company has advanced filtering and machine learning on its SMS systems, and during 2021 had blocked nearly 30m text messages related to the Flubot scam alone.
A Vodafone spokesperson said it began blocking spam and scam texts in 2014, and upgraded its services in 2020 with “a sophisticated SMS firewall that identifies and blocks scammers from reaching our customers.”
“Protecting Vodafone customers from the scourge of scams will always be a priority,” the spokesperson said.
“Based on a combination of artificial intelligence and user-enabled rulesets, our system has blocked more than 522m scam text messages in the past year alone. In the same period, we have also identified and blocked more than 26m scam calls from reaching our customers.”
The telco industry is currently finalising an update to the industry code on scam calls to incorporate requirements for dealing with scam SMS.
The chair of the Australian Competition and Consumer Commission, Gina Cass-Gottlieb, told a Senate estimates hearing on Wednesday ScamWatch had noticed a 50% decrease in reported phone-based scams as a result of telecommunications companies taking action.
“We believe that’s in part because of disruption by the telecommunications companies alerted by and with information that ScamWatch is providing them,” she said.
Cass-Gottlieb said it had caused scammers to switch to investment-related scams, with financial losses up to $72m and cryptocurrency becoming the most common payment method.
The ACCC said there was a 90% increase in financial losses from the scams in the first three months of 2022, compared to the same period in 2021, with 49,548 reports of losses, and a total of $103m reported as lost to scams in that period.
