Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

Identity Verification – Combating Fraud in the Telecommunication Sector

b-img-idv

Developing technology, rapid growth in digitization, and increased use of digital transactions have become responsible for many users’ data shared on the internet. To participate in telecommunication, users have to insert their personal information which ultimately becomes a route for fraudsters to commit financial crimes like identity theft and monetary scams. 

As the telecom industry entirely depends on digitization, there is a need for effective identity verification measures to reduce the potential risk of cyber crimes and illicit activities. 

Concurrently, the telecom sectors are facing fraudulent ventures like SIM swap scams and identity theft, both of which are surging due to a lack of efficacious IDV solutions.

Fraud in the telecom industry has caused loss of about 2.22% in revenue, which is equivalent to $39.89 Billion. Censoring financial crimes and identity theft through strict measures has become compulsory for the smooth onboarding of customers in the telecom sector. 

Consequences of Telecommunication Fraud

Users can make instantaneous payment transactions with the help of smartphones and other devices. Consumers must understand that their personal data is always vulnerable to cyberattacks due to online exchange procedures. 

Any loopholes in the network can lead to the exploitation of the system and as a result identity theft, monetary crimes, and account hacking can happen. As reported by the CFCA (Communication Fraud Control Association), Telefonica Group faced a monetary loss of $900 million as a result of external attacks. 

SIM farm fraud is another common approach used by criminals to exploit the telecom sector. Following this method, bad actors receive payments and send SMS messages to multiple recipients to extract their private data. After doing so, they try to hack users’ social media accounts and other financial accounts like digital wallets with the assistance of OTPs (One-time passwords). 

T-Mobile, one of the well-known names in the telecom industry, was reported to be exploited by a gang implementing a SIM swap technique. During the COVID-19 pandemic, phishing scams were also surging when deceitful vaccine certificates were used to gain victims’ financial information. These prevailing scams summon the global regulatory bodies for shielding the telecom industry. 

Analyzing and Mitigating Fraud in Telecom Industry

With the help of hacking techniques, SIM-swapping scams are frequently occurring when users’ private data is transferred to the SIM of a scammer online. Hackers can then gain access to customers’ financial information and can also misuse the data. The confidential data may include emails, credentials, and banking details. The telecommunication sectors must acquire a risk-based approach to analyze and eliminate such fraudulent ventures.

​​After the telecom sector provided its user’s zero-rate calls, it became clear that the sector requires and uses the finest accessible precautionary measures. The industry must make an effort to detect scams while making certain a fair service usage approach. Measures must be taken to detect and keep record of customers’ use of telecommunication services. Moreover, authorities should take up the role of monitoring networks to identify criminal activity.

There are now solid applicable solutions in the market for telecom service providers to look out for suspicious activities and prevent SIM swap fraud with the help of devices that show unusual usage patterns. For instance, warnings can be sent out to customers if suspicious activity is detected beforehand. Suspicious activity can be monitored by observing the traffic coming from a certain locality through mobile devices that are sending substantial numbers of SMS messages containing a link. Fictitious activities can also be analyzed through IMEIs that show significantly higher data usage compared to other devices in a shorter duration of time.

b-info-telecom

Use of IDV Solutions to Secure the Telecom Sector

KYC is the act of authenticating users’ identities that is performed by banks and other financial organizations handling financial operations. It particularly prevents the risks of identity fraud and keeps a strict check on both customers and telecom service suppliers. 

In many countries, KYC measures are supported by governments as part of the AML (Anti-Money Laundering) directives and as part of measures to regulate smartphone operators from objectionably becoming the cause of criminal activity and terrorist financing. In areas where KYC measures are not reinforced by governments, telecom operators must adopt vigorous identity verification solutions to prohibit fraudulent institutions from getting hold of their systems. 

Digital identity verification solutions utilize technologies like biometric facial recognition that are analyzed by algorithms with thousands of AI models to detect the true identities of telecom companies’ users’. KYC measures make sure that companies run background checks on their customers to figure out whether they are connected to PEPs (Politically Exposed Persons) in addition to checking their presence in sanctions lists globally. 

Global Regulatory Sanctions in the Telecom Sector

Like any other sector, eliminating telecom fraud is pivotal for smooth operations in the telecom industry. A number of countries have established telecom authorities that are responsible for regulating the industry and ensuring the adoption of standard measures to deter fraud. Here are some examples of regulatory authorities in countries around the world.

Australia 

Since the perpetual outrage in telecom fraud, Australian Communication and Media Authority is taking strict measures to eliminate telephonic and SMS scams. Modern regulations require scam messages to be censored, identified, and blocked immediately. According to an analysis performed by the Australian Competition and Consumer Commission (ACCC) analysis, 32% of all reported scams were SMS scams. According to the new Australian Code, mobile companies could face hefty fines of up to $250,000 for SMS scams. The mobile companies in Australia will also be required to share the scam reports with other regulatory authorities. 

USA 

The main regulatory authority responsible for establishing the laws regarding the telecom sector in the USA is the Federal Communications Commission (FCC). It primarily regulates national and international telecommunications, mobile services, radio, and to some extent, cable television content. The services of the FCC are supervised directly by the House of Representatives and Senate. 

UK 

The Office of Communication (Ofcom) is the regulator for the UK’s telecommunication sector. It mainly regulates radio, TV, mobile phones, fixed-line telecoms, and the airwaves over which wireless devices operate. Ofcom works inline with the Communications Act 2003 to exempt fraudsters from the telecom sector. The legislation authorizes the regulation of the telecom industry, ensures  basic customers’ rights, and sets out the obligations of Ofcom as the national regulator. 

What Shufti Offers

The global telecommunication industry and transmission service contributors are being threatened by cybercriminals and finding it difficult to mitigate scams. As a result, digital accounts and wallets are more likely to be compromised. Thus, the reliability, as well as the reputation of telecom service providers, is at risk.

​​Shufti’s identity verification solution empowers companies in the telecommunication industry by mitigating fraud risks as they authorize mobile phone service providers to verify clients’ identities before getting them on board. 

Ready to discover more about Shufti’s identity verification solutions?

Connect with a KYC Expert

Related Posts

Blog

KYC Checklist: A Comprehensive Guide for Businesses and Financial Institutions

In the ever-evolving landscape of finance, having a solid defence against financial crime is cruc...

KYC Checklist: A Comprehensive Guide for Businesses and Financial Institutions Explore More

Blog, Identity & KYC

Geolocation Technology and its benefits for KYC Verification

KYC verification has come a long way from simply authenticating the official identity documents o...

Geolocation Technology and its benefits for KYC Verification Explore More

Blog, Financial Crime / AML, Identity & KYC

Why Financial Industry Needs KYC/AML Compliance?

Banks and other financial institutions often serve financial criminals as a conduit for dirty mon...

Why Financial Industry Needs KYC/AML Compliance? Explore More

Blog

Know Your Donor (KYD) – Eradicating Financial Crimes in NPOs and Charity Organizations

In 2020, US citizens alone donated more than $471 billion to charities. This generosity ultimatel...

Know Your Donor (KYD) – Eradicating Financial Crimes in NPOs and Charity Organizations Explore More

Blog

Understanding the Difference Between Money Laundering and Embezzlement

Money laundering and embezzlement are two financial offences involving the movement of significan...

Understanding the Difference Between Money Laundering and Embezzlement Explore More

Blog

Risks of Vaccine Verification Apps & What IDV Industry can Offer

COVID-19 has brought enough changes to make the world smarter. Businesses and customers migrating...

Risks of Vaccine Verification Apps & What IDV Industry can Offer Explore More

Blog

A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps

There is no doubt that social media has its benefits in contemporary times. With the growing tech...

A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps Explore More

Blog

KYC Trends To Watch Out For In 2024

Within the last year, there has been significant transformation in the global identity verificati...

KYC Trends To Watch Out For In 2024 Explore More

Blog

Securing Banks and Curbing Financial Crimes with Shufti AML/KYC Solution

Banks and other financial institutions constantly face the challenges of tackling financial crime...

Securing Banks and Curbing Financial Crimes with Shufti AML/KYC Solution Explore More

Blog

The 5 Pillars of Anti-money Laundering Compliance

Imposters often “launder” money acquired through illegal activities, like drug trafficking, so th...

The 5 Pillars of Anti-money Laundering Compliance Explore More

Blog

A Brief Insight into Safe Havens for Russian Oligarchs

The recent Russia-Ukraine conflict has sparked the West to impose sanctions targeting the Russian...

A Brief Insight into Safe Havens for Russian Oligarchs Explore More

Blog

Securing Business Operations with Address Verification in 2024

A key component of enhancing customer service and reducing fraud is gathering and validating addr...

Securing Business Operations with Address Verification in 2024 Explore More

Blog

10 Frequently Asked Questions about Real-time Document Verification

As we’re propelled deeper into digital transformation, techniques employed by scammers are ...

10 Frequently Asked Questions about Real-time Document Verification Explore More

Blog

20 Facts and Statistics About the Global Finance Sector

The finance sector makes up around 20 to 25% of the global GDP. With the market capitalization re...

20 Facts and Statistics About the Global Finance Sector Explore More

Blog

Combating Identity Theft in On-Demand Services with Shufti’s KYC Solution

Transition is the only thing that is inevitable in the universe. Every passing day is changing ou...

Combating Identity Theft in On-Demand Services with Shufti’s KYC Solution Explore More

Blog

KYC/AML Compliance for Startups in the Financial Sector – How Shufti Can Help

As technology continues to transform the financial industry, the need for identity verification h...

KYC/AML Compliance for Startups in the Financial Sector – How Shufti Can Help Explore More

Blog

Working from Home Spikes Demand for Digital Identity Verification

Due to the Coronavirus Pandemic, many businesses are grounded or are enforced to work from home. ...

Working from Home Spikes Demand for Digital Identity Verification Explore More

Blog

Vendor due diligence – Why it’s important and how it’s done?

In today’s ever-changing corporate landscape, businesses are always looking for ways to make thei...

Vendor due diligence – Why it’s important and how it’s done? Explore More

Blog, Online Marketplace

What do NGOs have to gain from Identity Verification Services?

Identity Verification services are quickly becoming the cornerstone of NGO-related activities acr...

What do NGOs have to gain from Identity Verification Services? Explore More

Blog

Legal Entity Identifier (LEI) — What it means and how it helps financial institutions?

The need for trusted digital communication in this age is crucial due to increasing cybercrimes. ...

Legal Entity Identifier (LEI) — What it means and how it helps financial institutions? Explore More

Blog

5 Ways how IDV Provides an Active Defense Against Fincrime

Identity theft, account takeovers, and data breaches… The world has seen enough cybercrime ...

5 Ways how IDV Provides an Active Defense Against Fincrime Explore More

Blog

Know Your Business (KYB) | Ensuring Financial Security

The Know Your Business solution standard verifies a company’s legal standing and confirms i...

Know Your Business (KYB) | Ensuring Financial Security Explore More

Blog

An Insight into Global Regulations for the Cryptocurrency Sector [2022 Update]

With emerging technologies continuing to proliferate faster and rapid digitization all around us,...

An Insight into Global Regulations for the Cryptocurrency Sector [2022 Update] Explore More

Blog

Debunking the Top 5 Misconceptions about KYC Compliance

Know Your Customer (KYC) compliance suffers from the issue of unintentional secrecy. Businesses h...

Debunking the Top 5 Misconceptions about KYC Compliance Explore More

Blog

Digital COVID Pass: Automated COVID Report Verification

The worsening situation of the pandemic has forced authorities to impose restrictions on several ...

Digital COVID Pass: Automated COVID Report Verification Explore More

Blog

The Relentless Rise of Fraud in the FinTech Industry – How CDD Helps

Fraud has always been on the rise ever since the advent of the FinTech industry. As perpetrators ...

The Relentless Rise of Fraud in the FinTech Industry – How CDD Helps Explore More

Blog

AML & KYC Compliance – 5 Ways AI is Supporting the Fight Against Financial Crimes

  Reforming AML & KYC Compliance Structures for Financial Institutions The capabilities ...

AML & KYC Compliance – 5 Ways AI is Supporting the Fight Against Financial Crimes Explore More

Blog

Document Verification Services – The Secret Sauce to Keep Fraudsters Away

Forging someone’s documents is something bad enough but selling them on the dark web is just rubb...

Document Verification Services – The Secret Sauce  to Keep Fraudsters Away Explore More

Blog

AML Screening – Identifying Financial Criminals in the Art & Antiquities Sector

There is no doubt in the fact that art and antiquities are one of the sectors responsible for bil...

AML Screening – Identifying Financial Criminals in the Art & Antiquities Sector Explore More

Blog

An Insight Into AML Compliance Concerns Amid Russia Sanctions

With Russia’s attack on Ukraine, the international financial landscape is facing concerns of comp...

An Insight Into AML Compliance Concerns Amid Russia Sanctions Explore More

Blog

Shell Companies and Money Laundering: How to Combat Them?

Shell companies are notorious for all the right reasons. These entities often called ghost compan...

Shell Companies and Money Laundering: How to Combat Them? Explore More

Blog

Forex | The Use of Identity Verification

In addition to safeguarding clients, forex brokers have legal and regulatory obligations to uphol...

Forex | The Use of Identity Verification Explore More

Blog

AML Screening | Fighting the War Against Terrorist Financing & Money Laundering

Money laundering and terrorist financing have become a global concern. In the US alone, approxima...

AML Screening | Fighting the War Against Terrorist Financing & Money Laundering Explore More

Blog

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs]

Since the last decade, governments and financial institutions have been trying to limit corruptio...

Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs] Explore More

Blog

Anti-Money Laundering (AML) Screening | Combat Online Gambling Scams Effectively

Online gambling has seen significant adoption in the past few years because of the convenience, v...

Anti-Money Laundering (AML) Screening | Combat Online Gambling Scams Effectively Explore More

Blog, Identity & KYC

KYC/AML Compliance in light of FinTRAC

Witnessing the updated AML/CTF regime; the guidelines by FinTRAC regarding ID verification have b...

KYC/AML Compliance in light of FinTRAC Explore More

Blog

Enhanced Due Diligence Vs. Customer Due Diligence – The Practical Approach to Counter Cybercriminals

The nature of digital operations is changing, and users are now preferring to use remote services...

Enhanced Due Diligence Vs. Customer Due Diligence – The Practical Approach to Counter Cybercriminals Explore More

Blog

Protect Your Business Against Identity Theft with Face ID Check

The efficacy of biometric authentication becomes questionable in the face of facial ID checks. It...

Protect Your Business Against Identity Theft with Face ID Check Explore More

Blog

Strengthening E-commerce Security with KYC Regulations

Facilitating customers to shop online, anytime and anywhere, eCommerce has revolutionised digital...

Strengthening E-commerce Security with KYC Regulations Explore More

Blog

UAE Government Stepping Up Against Prevalent Crimes

The UAE is known for being home to flourishing businesses and providing a significant level of fi...

UAE Government Stepping Up Against Prevalent Crimes Explore More

Blog

A Quantitative Insight into the Global Gaming and Gambling Industry

The gaming and gambling industry has demonstrated exponential growth in the past decades and is e...

A Quantitative Insight into the Global Gaming and Gambling Industry Explore More

Blog

The Crucial Role of Face Liveness Check in Fintech

Fintech firms lose approximately $51 million to scams annually. However, the cost of fintech frau...

The Crucial Role of Face Liveness Check in Fintech Explore More

Blog, Online Marketplace

Nordic Banks brace for Digital KYC with centralized Database

Five major Nordic banks have formed a partnership to establish a company that will compile a cent...

Nordic Banks brace for Digital KYC with centralized Database Explore More

Blog

Reshaping Travel and Tourism with Instant Facial Recognition

Few technologies have sparked much debate as much as facial recognition. Today, it is considered ...

Reshaping Travel and Tourism with Instant Facial Recognition Explore More

Blog

5 Key Cybersecurity Threats for 2020

Cybersecurity threats have become remarkably common and they continue to gain traction with the p...

5 Key Cybersecurity Threats for 2020 Explore More

Blog

Replay Attacks – Another Rising Threat for Businesses in 2021

As technology advances, more and more solutions are available for making lives convenient. Unfort...

Replay Attacks – Another Rising Threat for Businesses in 2021 Explore More

Artificial Intelligence, Blog

How Augmented Intelligence is next stop in ID Verification Services?

Augmented intelligence (AI), also referred to as intelligence augmentation (IA) and cognitive aug...

How Augmented Intelligence is next stop in ID Verification Services? Explore More

Blog

Role of Enhanced Due Diligence in Combating Money Laundering

Enhanced Due Diligence (EDD) is an advanced and refined version of KYC due diligence process that...

Role of Enhanced Due Diligence in Combating Money Laundering Explore More

Blog

Warning Signs of ICO Scams and the Role of Identity Verification Service

If you have heard of Bitcoins and cryptocurrencies then you must have heard of ICOs or Initial Co...

Warning Signs of ICO Scams and the Role of Identity Verification Service Explore More

Blog

Uncovering 5 Holiday Season Scams and How to Avoid them this Year

‘Tis the season when the best deals of the year are attracting customers towards online shopping ...

Uncovering 5 Holiday Season Scams and How to Avoid them this Year Explore More

Artificial Intelligence, Blog, Identity & KYC

How Biometric Technology is Shaping Up for 2020

The verification of individuals for security measures has become remarkably important for organiz...

How Biometric Technology is Shaping Up for 2020 Explore More

Blog

April 2023 Recap: Major AML Fines and Key Events

With the world embracing digital transformation, scammers have adopted sophisticated strategies t...

April 2023 Recap: Major AML Fines and Key Events Explore More

Blog

The Top Customer Onboarding Tips for Businesses

Today every business is competing to boost their retention rate and offer their audience a secure...

The Top Customer Onboarding Tips for Businesses Explore More

Blog

Identification, Verification and Authentication – Cut from the same cloth

The modern era of technology has brought so many frauds to light. The digitized world has urged b...

Identification, Verification and Authentication – Cut from the same cloth Explore More

Blog

Japan’s AML/CFT Assessment – August 2021 Report

Financial crime is soaring sky high with digitisation becoming a part of our daily lives. Cyber a...

Japan’s AML/CFT Assessment – August 2021 Report Explore More

Blog

A Guide to Understanding KYC in Banking

2022 has witnessed a rise in the number of fraudulent cases by 18% compared to 2021, damaging bus...

A Guide to Understanding KYC in Banking Explore More

Blog

Biometrics technology a key to key-free world

In 2016, the biometric market in the United States reached $3.52 billion U.S Dollars and is expec...

Biometrics technology a key to key-free world Explore More

Blog

5 Key Regulatory Updates for the Banking Sector in 2021

The pandemic disrupted operations in the banking sector and the criminal activities significantly...

5 Key Regulatory Updates for the Banking Sector in 2021 Explore More

Blog

Marketing Firms embracing KYC Services for Better service Delivery

Browsing through your Facebook newsfeed and you come across one of ‘Those’ friends – “Hey P...

Marketing Firms embracing KYC Services for Better service Delivery Explore More

Blog

Art Market in the Frame of Money Laundering

The highly volatile finance and crypto sector is not appealing for many investors, so they turn t...

Art Market in the Frame of Money Laundering Explore More

Blog

How to Create a Wow! Fraud Prevention System with Shufti

The ever increasing threat of identity fraud skyrocketed when the coronavirus pandemic struck the...

How to Create a Wow! Fraud Prevention System with Shufti Explore More

Blog

5 Ways How AI Is Uprooting Recruitment Industry

Artificial Intelligence is strengthening its position in many industries and the recruitment indu...

5 Ways How AI Is Uprooting Recruitment Industry Explore More

Blog

Securing Digital Landscape with Electronic Identity Verification Services in 2023

With a surge in identity document forgery, the likelihood of onboarding a criminal has grown subs...

Securing Digital Landscape with Electronic Identity Verification Services in 2023 Explore More

Anti Money Laundering, Blog, Financial Crime / AML, Identity & KYC

Winter is Coming: With a Storm of KYC and AML Regulations

The ever-evolving regulations are creating challenges and complexities for the financial institut...

Winter is Coming: With a Storm of KYC and AML Regulations Explore More

Blog

KYC in banking: How American banks can fight identity thieves?

In the present globalized, fast-evolving sphere, revolutionizing KYC (Know Your Customer) is cruc...

KYC in banking: How American banks can fight identity thieves? Explore More

Blog

Combating Money Muling Activities With Shufti’s AML Screening Services

The coronavirus pandemic has brought about unusual changes in industries and lifestyles across th...

Combating Money Muling Activities With Shufti’s AML Screening Services Explore More

Blog

Transaction Screening: The Benefits and Challenges

Financial crimes are rising, wreaking havoc on organisations and individuals. The fraud rate has ...

Transaction Screening: The Benefits and Challenges Explore More

Blog

Strengthening digital businesses with online age verification

It is projected that by the end of 2021, 2.4 billion will buy products and services online, up 46...

Strengthening digital businesses with online age verification Explore More

Blog

Which KYC Solution is Right for Your Business?

KYC solutions are vital for assessing consumer risk and a legal necessity for complying with Anti...

Which KYC Solution is Right for Your Business? Explore More

Blog

Basel AML Index 2021 – Evaluating the Risk of Money Laundering Worldwide

 The threat for money laundering and terror financing continue to increase with global a...

Basel AML Index 2021 – Evaluating the Risk of Money Laundering Worldwide Explore More

Blog

Biometric Authentication – A Solution Against Fraud Detection

Biometrics technology is the way forward for identity verification services as they allow for qui...

Biometric Authentication – A Solution Against Fraud Detection Explore More

Blog

Metaverse and Money Laundering – How Shufti’s AML Screening Helps

For quite some time now, the world has been preparing itself for the latest development in multip...

Metaverse and Money Laundering – How Shufti’s AML Screening Helps Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started