ACMA suggests Digital ID identification verification to buy prepaid mobile SIM cards

Australian telcos may soon accept Digital ID to verify the identity of prepaid mobile phone users, as proposed by the Australian Communications and Media Authority (ACMA). If approved, this initiative would enable telcos to use a user’s Digital ID—a government-backed digital wallet linked to verified credentials like a driver’s licence or Medicare card—as a valid form of identity during SIM activation. ACMA’s proposal suggests that integrating Digital ID into prepaid mobile onboarding could help mitigate SIM-related fraud and reduce the reliance on physical document checks. This move comes nearly a year after the Digital ID Act was enacted, marking a significant step towards broader adoption of this credential across Australian organisations.

The scheme aims to lower the risk of data breaches involving identification information, particularly in light of recent cyber hacks affecting companies like Optus and Medibank. The government has committed $288.1 million over four years in the Budget 2024-25 to support the rollout of this scheme, which will initially focus on the public sector and extend to the private sector by December 2026. In preparation for this expansion, ACMA is working to facilitate the adoption of government-backed verification for telcos without the need for individual compliance plan approvals. Since 2017, Australian telcos have been mandated to verify customer identities before activating prepaid mobile services, requiring users to validate their government-issued IDs through a document verification system (DVS), either in-person or online. ACMA’s consultation period is set to close on October 25.