Telstra to scan all text messages for malicious content in anti-scam program

Telstra joins other major telcos in scanning SMS messages, with consumer 
watchdog saying the moves have halved reported scams

By Josh Taylor  Thu 7 Apr 2022 
https://www.theguardian.com/business/2022/apr/07/telstra-to-scan-all-text-messages-for-malicious-content-in-anti-scam-program


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.”

An unsolicited call is the first red flag for a scam, experts say.

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.

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