14 DAY TRIAL // SIM-swap fraud is becoming problematic in many parts of the world, including South Africa. In order to address this issue, South African mobile operator MTN and Absa, one of the country’s largest financial institutions, have formed a task force to combat this criminal phenomenon.
SIM swaps are used by fraudsters to gain access to the verification codes sent by banks to customers when transactions are performed.
The crooks gain access to victims’ details via phishing, after which they contact the mobile operator and obtain a new SIM card by pretending to be the victim. Once the new SIM is activated, the old one is deactivated and all the verification text messages from the bank are sent to the crooks.
By the time the victim realizes what’s going on, the crooks can empty their bank accounts.
According to Finextra, MTN has been witnessing an increase in the number of SIM-swap fraud cases, but the company says it can’t be held liable for losses.
While they try to find ways to combat these crimes, some measures have already been implemented. Absa has published an advisory on its website to warn customers of scams that rely on SIM swaps.
“We are working tirelessly with MTN and the South African Banking Risk Information Centre (SABRIC) to ensure that the systems and security are comprehensive and robust. Collaborating with MTN on reaching a joint solution has allowed us to tighten the screws on this method of eCrime,” said Absa's Head of Digital Channels and Payments, Adrian Vermooten.
For its part, MTN will instate a delay when SIM swaps are requested to make sure the request is made by a legitimate customer. In addition, a dual authorization process is also being considered.