The rise of smartphone users worldwide has resulted in sharing of massive volumes of data regularly through digital platforms. This invites fraudsters to exploit system vulnerabilities and use customer data for malicious objectives. Telecom experts want to discourage criminal activities through the application of innovative technologies. Using online KYC services can help professionals prevent SIM swap fraud and money laundering cases effectively. This way, the telecom industry can also ensure compliance with KYC & AML regulations to avoid hefty fines and bans.
The following sections discuss the importance of Online KYC verification in the telecommunication industry and how advanced measures can deter fraud attempts.
Online KYC Verification Services: A Quick Insight
Identity validation procedure is about authenticating the personal credentials of a customer during the onboarding procedure. This way, telecom businesses can easily discourage identity theft and other financial crimes. Moreover, telecommunication corporations can conveniently avoid heavy fines and bans from regulatory bodies. This also ensures a positive customer onboarding experience while giving companies a competitive advantage.
The Telecom Sector: Gaining Insight into the Various Fraud Cases
Smartphones that help customers perform online transactions and share critical information are susceptible to external attacks. Multiple loopholes in mobile networks can attract fraudsters to commit identity fraud, payment scams and Account Takeover (ATO).
As per the Communication Fraud Control Association (CFCA), Telefonica group experienced a financial loss of $915 million because of external attacks. Fraudsters wanted to exploit the annual revenue of around $49.2 billion for instant reward.
SIM farming and phishing attacks have become common among criminals to receive free benefits from the telecommunication industry. This way, criminals demand money from victims, forward messages to strangers, and receive critical information. It allows hackers to use SIM swap crime which is a form of identity theft. With SIM swaps, criminals can easily access social media accounts, bank details and digital wallets through One Time Passwords (OTPs).
The Lapsus$ group attacked a T-mobile company through a SIM swap scam which gave criminals an OTP to access the Personally Identifiable Information (PII) of victims. The telecommunication sector encounters not only SIM swap attacks but also phishing scams from sophisticated criminals.
Combating Fraud Cases in The Telecom Sector
An online fraudster can commit a SIM swap crime by gaining access to customers’ sensitive information. Perpetrators use hacking techniques to achieve nefarious goals with minimal effort. This way, cybercriminals gain not only access to Personally Identifiable Information (PII) but also to emails & bank details. For this reason, telecommunication businesses need to implement risk-based approaches to discourage high-risk entities as well as external fraud.
When the telecom industry offered zero-rate calls to consumers, it became essential to implement AI-driven Online KYC measures. Telecom experts observed a massive increase in calls and messages. In the modern world, the telecommunication industry must implement advanced defence mechanisms to discourage fraud attacks. This will also ensure a fair service use policy and monitor customer interaction with telecom services. Experts will be able to observe mobile networks and various data sources in case of suspicious activities. This will allow telecom professionals to report abnormalities immediately and deter fraud actively.
Implementing Online KYC Solutions & IMEI to Fight Scams
The AI-driven identity verification services can help telecom operators to identify SIM swap scams and abnormal use of services. Using cutting-edge digital solutions can help professionals identify red flags and take necessary measures to protect the company. The online KYC solution can easily identify high-risk entities and deter scams.
International Mobile Equipment Identity (IMEI) can also support specialists in identifying suspicious devices that keep sending many messages with a special link. IMEI can detect high data consumption quickly from fraudulent systems.
Using AML Checks to discourage Money Laundering & Terrorism Financing Cases
In various areas worldwide, government agencies encourage using online KYC verification solutions and AML protocols to fight financial crimes. This way, mobile service providers can secure networks and actively combat money laundering and terrorist financing incidents.
Telecom professionals can get in touch with a competent vendor to use the latest KYC & AML measures to verify the identities of telecommunication consumers. This way, professionals can cross-match the credentials of new customers against global watchlists to identify Politically Exposed Persons (PEPs).
Cybercriminals are always on the lookout to exploit vulnerabilities in the telecommunication industry. If telecom experts do not implement the latest online KYC measures, it will become almost impossible for businesses to deter attacks and maintain credibility in the market. Cybercriminals want to gain access to online accounts & e-wallets to accomplish nefarious goals.
Collaborating with a verified third-party vendor can help the telecom sector apply GDPR-compliant online KYC checks. The AI-driven solution can produce high-quality results instantly and discourage high-risk entities from exploiting the system.