Increasing smartphone usage around the world has resulted in a huge amount of data sharing through digital sites. Clients want options that enable auto-fill for their Personally Identifiable Information (PII) in online applications. Customers also want their smartphones to perform daily duties, for instance, responding to messages.
In the interim, the telecom industry experiences obstacles due to digital fraud such as SIM swaps and data breaches. Both of these occur as a consequence of poor perpetual KYC systems. Even though there has been development in the form of remote accessibility of digital solutions, the telecom sector is still facing challenges of identity fraud and other financial crimes.
Fraud Aimed Towards the Telecom Industry
Smartphones facilitate making online payment exchanges. Users must be aware that the transfer process of critical information is always prone to digital scams. Any loophole in a digital network can enable fraudsters to exploit smart devices. The main objective is to perform identity fraud, financial transaction felony, and account takeover. As per the Communications Fraud Control Association (CFCA), a telecom organization named Telefonica Group with a $49.2 billion monetary worth in 2020 faced a financial drop of $915 million as a consequence of cyberheists.
Fraudsters used deceptive methods such as SIM farms to take advantage of free services in the telecom industry. Because of such approaches, cybercriminals made payments and sent messages to various victims. The purpose was to acquire customers’ personally identifiable information. In light of success, fraudsters used critical data for SIM swaps, which is a kind of identity fraud. The objective was also to acquire access to consumers’ social media sites, monetary accounts, and e-wallets by acquiring OTPs (One-Time Passwords).
The SIM Swap Scam Incident
One of the popular names in the telecom industry, T-Mobile, was recently taken advantage of by an extortion gang. Criminals used SIM swap scams and code fraud against the organization. Both SIM swapping approaches and phishing SMS techniques target telecom organizations. The most recent incident came to light in the form of various messages that facilitated fraudulent financial aid plans for Ukraine. Phishing scam was widespread during the COVID period when fake vaccination programs were utilized to gain access to banking details.
Such kinds of cases make it very tough for global regulatory experts to regulate the telecom industry. While SIM swap is convenient to execute for criminals, it has a bad impact on telcos and their consumers. In the case of outdated Perpetual KYC verification protocols, the sector will keep experiencing more fraud cases in the future. Regulations for the telecom sector should include standards for providing proof of identity while purchasing a SIM card.
Identifying & Fighting Scams
SIM swap scams occur when a client’s sensitive information transfers to the SIM card of a criminal through hacking techniques. Such a scam easily exposes the consumers’ personal information. It also elevates the risk of hackers gaining access to other concerning information through OTPs in SIM cards. This information can include email information and banking details. Telecom organizations must implement a Risk-Based Approach (RBA) to identify and combat such fraudulent activities.
After the telecom industry gave its consumers zero rate calls, it became clear that the sector needed the best security measures such as Perpetual KYC authentication. Telecom organizations must take active steps against fraud while ensuring a reasonable service policy. There must be policies in place to monitor customers’ use of telecom services and observing of networks. In this case, telecommunication organizations can catch and control scamming activities through a robust Perpetual KYC system.
The Contribution of IMEI (International Mobile Equipment Identity) in Controlling Scams
There are now robust solutions accessible in the market for instance Perpetual KYC services for the telecom sector to observe fraudulent behaviours and identify SIM swap scams by smart devices that emphasize fraudulent activities. The telecom industry, which detects the red flags in digital service consumers, is able to effectively fight fraud attempts. It easily occurs by observing suspicious activities in massive volumes of online traffic. IMEIs also facilitate catching fraudulent behaviours by showcasing comparatively more information usage as opposed to other smart devices. Hence, the application of Perpetual KYC verification is extremely important along with IMEIs to minimize fraud incidences.
The telecommunication sector experiences various challenges as a result of cyberheists and finds it tough to reduce complex fraud cases. By virtue of such reasons, the confidentiality of online profiles and e-wallets will be violated. The credibility, and the image of KYC service suppliers, are at peril.
For the telecom industry, Perpetual KYC solutions are an ideal approach as it allows mobile service suppliers to verify clients’ identities during the onboarding process. Powered by hundreds of AI & ML algorithms, the Perpetual KYC services can authenticate identities with top-notch accuracy promptly. Therefore, telecom sector service suppliers can easily do risk analysis of high-risk clients.