Digitalization has resulted in a large amount of information sharing through online platforms. Consumers want various options that allow auto-fill for their Personally Identifiable Information (PII) in digital applications. Clients also want their electronic devices to execute daily chores, for example, replying to emails.
At the same time, the telecom sector faces challenges due to digital scams, for instance, SIM swaps and data privacy violations. Both of the problems occur as a result of outdated perpetual KYC checks. Although there has been progressing in the remote availability of digital services, telecom organizations are still experiencing obstacles of identity theft and money laundering.
Digital Scams Directed Towards the Telecom Sector
Electronic devices help make digital payment transactions. Consumers must be familiar that the transfer procedure of sensitive information is always susceptible to digital fraud. Any shortcomings in a digital network can allow criminals to take advantage of electronic devices. Their chief purpose is to perform identity theft, financial transaction crime, and account hacking. In accordance with the Communications Fraud Control Association (CFCA), a telecom organization called Telefonica Group, with around $50 billion financial worth in 2020, experienced a monetary loss of more than $900 million as a result of cyberattacks.
Criminals used manipulative techniques, for instance, SIM farms to exploit free services in the telecom sectors. As a consequence of such approaches, hackers transferred payments and disseminated messages to hundreds of victims. The ultimate objective was to gather clients’ Personally Identifiable Information (PII). In this regard, fraudsters used sensitive data for SIM swaps, a type of ID theft. The goal was also to gain access to clients’ social media platforms, bank details, and digital wallets by getting hands-on OTPs (One-Time Passwords).
The SIM Swap Heist Case
A notorious gang recently took advantage of one of the famous names in the telecom sector, T-Mobile. Hackers used SIM swap fraud and code scams against the industry. Both SIM swap techniques and phishing SMS approach target the telecom industries. Recently, an incident emerged in the form of multiple messages that helped deceptive financial aid programs for Ukraine. Phishing fraud was common during the pandemic when fake vaccination certificates were used to access victims’ financial details.
These types of cases make it extremely difficult for global regulatory agencies to monitor the telecom sector. While SIM swap is easier to perform for criminals, it has a severe bad impact on telcos and their users. In light of poor Perpetual KYC attestation measures, the industry will keep facing more criminal cases in the times ahead. Regulations for telecom organizations must comprise guidelines for displaying proof of identity while acquiring a SIM card.
Recognizing & Combating Fraud
SIM swap incidences happen when a client’s crucial data transfers to the SIM card of a cybercriminal through sophisticated hacking approaches. This kind of scam conveniently exposes the clients’ personal data. It also increases the risk of criminals acquiring access to other significant information through Time Passwords (OTPs) in SIM cards. This data can involve email data and other financial details. Telecom industries must apply a Risk-Based Approach (RBA) to catch and deal with such scamming activities.
When the telecom sector gave its clients the option of zero rate calls, it became apparent the industry needed the latest security protocols, such as the Perpetual KYC verification system. Telecom industries must actively fight scams while guaranteeing a pragmatic service policy. There must be protocols to observe customers’ usage of telecom solutions and observation of networks. In this scenario, telecommunication industries can detect and reduce suspicious activities through a powerful Perpetual KYC system.
The Role of IMEI (International Mobile Equipment Identity) in Reducing Fraud Cases
There are now advanced services accessible in the market, such as Perpetual KYC solutions for the telecom organization to observe fraudulent activities and catch SIM swap fraud by smartphone devices. The telecom sector, which detects deception in digital service clients, can efficiently fight scam attempts. It smoothly occurs by monitoring suspicious transactions in vast volumes of digital traffic. IMEIs also support detecting scamming activities by displaying comparably more data usage as compared to other electronic devices. Consequently, implementing Perpetual KYC is significant together with IMEIs to reduce fraud cases.
The Final Verdict
The telecommunication industry faces multiple challenges because of cyberattacks and experiences difficulty in reducing sophisticated ID fraud incidences. On account of such reasons, the privacy of digital profiles and online wallets will be violated. The reputation, and reliability of KYC service providers, are at risk.
For the telecom sector, Perpetual KYC services are a progressive approach because they enable mobile service providers to authenticate customers’ profiles during the client enrollment process. Supported by multiple AI & ML models, the Perpetual KYC solutions can instantly verify identities with higher accuracy rates. Consequently, telecom industry service suppliers can readily implement a risk-based approach regarding highly-risky clients.