ACMA proposes digital ID for prepaid mobile SIM verification

Australian telcos could soon accept Digital ID to verify the identity of prepaid mobile phone users under a proposal floated by the Australian Communications Media Authority.

If agreed, the move would allow telcos to accept a user’s digital ID, a government-backed digital wallet linked to verified credentials such as a driver’s licence or Medicare card, as a valid form of identity during SIM activation.

According to ACMA’s proposal, bringing digital ID into prepaid mobile onboarding could “help mitigate SIM-related fraud and reduce reliance on physical document check”.

Coming almost a year after the Digital ID Act came into effect, the move marks an early step toward broader adoption of the credential across Australian organisations.

The scheme aims to reduce the risk of data breaches involving ID information, as seen in recent cyber hacks, including Optus and Medibank.

The government pledged $288.1 million over four years in Budget 2024-25 to support the rollout of the scheme, starting with the public sector and extending to the private sector by December 2026.

In anticipation of this expansion, ACMA is seeking to clear the way for telcos to be able to adopt government-backed verification “without delay or the need for individual compliance plan approvals”.

Since 2017, Australian telcos have been required to verify the identity of a customer before activating a prepaid mobile service.

Users purchasing a prepaid mobile plan currently have to have their government-issued IDs validated using its document verification system (DVS), either in-person – for example, at an Australian Post office – or online.

ACMA’s consultation will close on October 25.