SMS remains one of the most common ways for people to communicate today, used by consumers, businesses and public institutions alike. With its broad reach and high open rates, it can be an effective and trusted way to share timely information.
That same popularity has also made SMS attractive to scammers. In Australia, text messages were the most commonly reported contact method for scams in 2023, with well over 100,000 reports recorded and a notable increase on the previous year (Source: ACCC).
Because text messages tend to be read quickly, often within minutes of being received (Source: MobileSquared), scammers are quick to take advantage of how fast people see and respond to messages, often creating a sense of urgency to prompt action.
To help address the rise in scams, regulators are moving to strengthen protections for consumers and reduce the risk of fraud. But there is a risk that some businesses could be left behind, lost in the noise of spam filters and warnings around unverified messages.
The impact of that could be significant: lower customer engagement, weaker conversion performance and, perhaps most importantly, reduced customer confidence.
Why Text Scams Are A Key Target
Sender IDs are the branded names that appear at the top of text messages from a business or organisation, such as a postal service or healthcare provider. These branded names provide a simple signal of authenticity, helping message recipients recognise brands and feel more confident that the message is legitimate.
Worryingly, scammers can use software to alter sender IDs and create names that look very similar to the real brand. In some cases, that means fraudulent messages can end up in the same thread as genuine communications, making them harder for consumers to spot.
Blending real and fraudulent messages in the same conversation can increase the chances of recipients clicking malicious links, making payments or sharing personal data with scammers.
The financial and emotional impact on victims can be severe. In the first half of 2025 alone, Australians reported scam losses of about $174 million (Source: ACCC).
Businesses can also bear the reputational fallout, whether they are accused of not doing enough to respond to scammers or simply become associated with confusing or unsafe-looking communications. Even brands that have taken steps to reduce scam risk may still be viewed negatively by customers who connect them with the experience of being targeted.
What Are The Changes?
In response, the Australian Communications and Media Authority (ACMA) has introduced a new Sender ID Register. ACMA says businesses and organisations using branded sender IDs are expected to work with their telco or messaging provider to register them before 1 July 2026. Messages linked to unregistered sender IDs may appear on customer phones as “Unverified” (Source: ACMA).
The change is intended to reduce both the frequency and impact of SMS scams. In practice, that may help consumers feel more confident that the messages they receive are genuine.
Businesses may also benefit from stronger confidence in SMS as a channel. If impersonation becomes harder, that could reduce customer confusion and lower the risk of reputational damage.
At the same time, businesses may need to do some preparation to ensure they are accepted onto the register in time. Messages that do not come from a verified source may be ignored by customers, which could affect trust and weaken marketing ROI.
For businesses that rely on SMS for marketing, customer service or critical updates, this could mean missed sales opportunities, failed delivery notifications and a decline in overall customer satisfaction.
How Can Businesses Ensure Their Voice Isn’t Lost In Spam?
Businesses using branded sender IDs may want to ensure they are on the register well before the 1 July deadline. ACMA advises applying as early as possible and notes that applications received after mid-May 2026 may not be approved in time, potentially leaving businesses exposed to delays or disruption in deliverability (Source: ACMA).
There are a few things to consider when it comes to registering a sender ID. The first is how recognisable it is for customers. If customers are already used to a certain sender name, changing it may create confusion.
It also helps to ensure that sender IDs leave little ambiguity about who you are or why you might be contacting customers, and to involve teams across marketing, compliance and IT so outdated sender details are less likely to slip through.
The second step is reviewing current messaging activity. For example, is the tone of voice and formatting reasonably consistent across messages? If correspondence changes significantly in style and tone, it may become harder for customers to recognise which brand is speaking to them.
While the register is expected to reduce some scam activity, vigilance is still likely to matter. Many consumers will remain alert to anything that appears suspicious. It may help to avoid language that mirrors the urgent tone, phrasing or cues often found in scam messages.
Ultimately, the introduction of the Sender ID Register appears to be a positive step for both consumers and organisations. While businesses may have some setup work to do, the potential payoff, including stronger consumer trust, lower reputational risk and reduced exposure to impersonation, could make the effort worthwhile. Addressing this part of the communications strategy early may help businesses head into 2026 in a stronger position.
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