KYC Online Verification Solutions: Fight Fraud
Rising smartphone utilization around the globe has accounted for massive volumes of data sharing through online platforms. Clients want to auto-fill in their Personally Identifiable Information (PII) in digital banking applications. They also need their phones to finish everyday duties such as buying groceries.
In the meantime, the telecom sector faces issues due to online frauds such as SIM swaps and data privacy violations. Both of these happen because of poor KYC online verification systems. Although there has been progressing in the form of remote availability of the service, the industry still faces identity theft and monetary crimes.
Scams Directed Towards the Telecom Sector
Electronic devices that facilitate in making digital financial transactions and sharing of sensitive information are susceptible to online scams. Even the smallest of shortcomings in a digital network can allow scammers to exploit mobile phones. The purpose is to carry out identity theft, payment transaction scams, and account hacking. According to the Communications Fraud Control Association (CFCA), a telecom industry named Telefonica Group with a $49.2 billion financial worth revenue in 2020 experienced a financial loss of $915 million because of cyberheists.
Cybercriminals use Manipulative techniques such as SIM Farms to exploit free services in the telecom sector. Through such approaches, fraudsters make payments and direct messages to hundreds of recipients. The main objective is to get their hands on personally identifiable information. In case of success, criminals use the sensitive data for SIM swaps, which is a type of identity theft. The aim is to gain access to social media profiles, financial accounts, and crypto-wallets by knowing OTPs (One-Time Passwords).
The SIM Swap Fraud Case
One of the biggest names in the telecom sector, T-Mobile, was recently exploited by an extortion gang. They used SIM swap fraud and code theft against the organization. Both SIM swapping scams and phishing SMS approaches target telecom organizations. The most up-to-date incidence arose in the form of big-scale messages that supported fraudulent financial support programs for Ukraine. Phishing fraud was prevalent during the pandemic period when fraudulent vaccination programs were used to acquire access to financial details.
Such types of incidents make it extremely difficult for the authorities to manage the telecom sector. While SIM swap is easy to carry out for fraudsters, it has a negative influence on telcos and their clients. In the case of poor KYC online verification measures, the industry will keep seeing more fraud incidents in the times ahead. Regulations for the telecom industry should include guidelines for submitting proof of identity while buying a SIM card.
Recognizing & Countering Scams
SIM swap fraud happens when a client’s crucial information shifts to the SIM card of a fraudster using hacking techniques. Such type of fraud not only makes the clients’ personal data susceptible to exploitation but also increases the risk of cybercriminals acquiring access to other relevant data in the SIM cards. This data may include email data and financial details. Telecom organizations must adopt a Risk-Based Approach (RBA) to recognize and fight such suspicious activities.
After the telecom sector gave its clients zero rate calls, it became evident that the industry required the best security protocols such as KYC online verification. Recently, telecom industries must show active participation against fraud while guaranteeing a fair service policy. There must be services in place to observe clients’ use of telecom solutions and screening of networks. In this light, telecom organisations can detect and communicate fraudulent activities.
The Role of IMEI (International Mobile Equipment Identity) in Combating Scams
There are now powerful solutions available in the market such as KYC online verification for the telecom industry to monitor fraudulent activities and recognize SIM swap fraud by electronic devices that highlight suspicious behavioral patterns. The Telecom sector, which monitors the red flags in electronic service users is able to successfully fight scam attempts. This happens by monitoring bizarre activities in huge volumes of traffic. IMEIs also help in detecting fraudulent activities by showing relatively more data usage as compared to other electronic devices.
Securing the Telecom Sector through KYC Online Verification
Know Your Customer (KYC) system is the procedure of authenticating clients’ identities. Banking service providers and other financial institutions must apply the digital solution. The aim is to decrease the risks of identity theft and monitor both clients and telecom industries. In various areas, KYC online verification measures have government endorsement because of AML regulations. Even in regions where KYC online verification measures are not facilitated by governments, telecom service providers must include robust identity authentication protocols to discourage fraudulent entities.
The telecommunication industry faces numerous challenges because of fraudsters and finds it difficult to control sophisticated fraud incidences. Because of such reasons, the privacy of digital accounts and e-wallets will be compromised. The trustworthiness, and the reputation of KYC online verification service providers, is at risk.
KYC online verification services are a perfect option for the telecom sector as it enables mobile service providers to identify customers’ genuine identities before onboarding them. Supported by thousands of AI & ML algorithms, the KYC solution can verify with high accuracy in real-time. Additionally, telecom industry service providers can also do risk evaluations of highly risky clients.