Telstra (ASX:TLS) pays huge fine for putting Australians in danger

Telstra Corporation Ltd (ASX: TLS) has paid a $2.53 million penalty after a watchdog investigation found “large-scale breaches” that put customers in danger.

The Australian Communications and Media Authority (ACMA) revealed on Thursday that its enquiry found Telstra had:

• Failed to correctly upload an unlisted (silent) phone number to the Integrated Public Number Database (IPND) almost 50,000 times
• Failed to provide data or update the IPND for customers of its Belong brand in more than 65,000 instances

This meant that customers who chose to have their numbers not listed on public lists had their details exposed.

ACMA chair Nerida O’Loughlin was in no doubt that this jeopardised the safety of some Australians.

“When people request a silent number it is often for very important privacy and safety reasons, and we know that the publication of their details can have serious consequences,” she said.

Emergency services had wrong information

Incorrect information on the IPND also has serious consequences even for customers who don’t have silent phone numbers.

Triple Zero services use the database to locate callers in an emergency. The Emergency Alert Service also utilises the IPND to send out warnings for events like severe floods or bushfires.

Law enforcement bodies also access the database.

“The provision of these critical services can be hampered and lives put in danger if data is missing, wrong or out of date. It is alarming that Telstra could get this so wrong on such a large scale,” said O’Loughlin.

A Telstra spokesperson told The Motley Fool that the telco had accepted ACMA’s findings and paid the infringement notice.

“We have an obligation and responsibility to protect the privacy and safety of our customers – and we haven’t met our own high expectations or those of our customers,” the spokesperson said.

“We self-reported these issues to ACMA and took steps to correct them.”

While O’Loughlin agreed that Telstra had self-reported and quickly fixed the problem, it has a history.

“This is not Telstra’s only recent major breach of these rules, which is why the ACMA has taken this action.”

Telstra shares were up 0.12% in early trade on Thursday, changing hands for $4.105. They’ve gained more than 36% in value this year.

The post Telstra (ASX:TLS) pays huge fine for putting Australians in danger appeared first on The Motley Fool Australia.

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