Online Know Your Customer - A Great Bet for the Telecom Industry

Nowadays, the accessibility of the internet and the wide use of cell phones have made it easier for criminals to commit fraud. Online know-your-customer solutions are urgently needed to combat cybercriminals in this digital era.

A mobile network flaw could result in unfavorable outcomes for telecom providers and smartphone users. Identity theft, payment fraud, money laundering, account takeover, and other scams are increasing day by day.

According to the Communication Fraud Control Association (CFCA), crime can cause the telecom sector to lose millions of dollars in income. Online know-your-customer solutions are crucial right now in order to reduce the level of deception in the sector.

Introducing Telecom Frauds 

Telecommunication fraudster, often known as telecom forgery, refers to the methods used to deceive operators or clients. Gaining information will enable scammers to commit a variety of crimes. Vishing and smishing are two types of telecom fraud. The only way to stop telecom fraud is via efficient online know-your-customer solutions.

Vishing and Smishing Attacks 

Phishing is a term that refers to both fishings as well as smishing assaults. Vishing is actually the combination of "voice" and "phishing." Vishing, as the names indicate, can lead a consumer to believe that the person they are speaking to is a real person.

By dialing the number of the user, it can impersonate the system. The user is easily tricked into giving their information to fraudsters who pretend to be from a respectable business.

Smishing is the practice of enticing people through SMS messages. Users will be directed to the appropriate criminal forum once they click the link that was given to them. Since they are necessary, online KYC solutions must be used in every industry.

Let's look at the steps of a security breach in the telecommunications business now:

• Data Breach 

The main motivation for every scammer to commit any offense is a data breach. Typical internet users might not be aware of the significance and importance of their sensitive credentials. Because of this, people are negligent with their data. Clients have to comply with KYC rules in order to protect themselves from criminal activity. Customers' sensitive information, including their social security number and credit card information, can be stolen in data breaches that occur in the telecom sector. Along with using KYC and AML solutions, people must be intelligent enough not to fall for any fraud attempts made by criminals.

• SIM Swap Fraud 

When a fraudster has access to a user's password, it is simple for them to impersonate the telecom provider or the client in other ways. Criminals request that somehow a SIM card linked to a phone number be switched to a different SIM card from the company. This is to gain access to a user's smartphone. SIM swap scam is what is occurring commonly. In industries that don't use know-your-customer solutions, scams are quite prevalent. Bad actors have complete control over all of a user's social media accounts by evading two-factor verification.

They will be vulnerable to these frauds if the telecom industry does not implement online know-your-customer procedures. Customers and businesses alike must endure unimaginable losses when they fall prey to SIM switch frauds.

• Identity Theft 

The process of identity theft begins with data breaches and moves on to SIM switch frauds. Possibly the most perilous stage is this one. Scammers use a  stolen name to perform many other crimes. Businesses are concerned that fraudsters using stolen identities can finance terrorism or money laundering.

Fraudsters can also post their innermost feelings as abusive comments on social media sites using a stolen identity, damaging the reputation of real users. Telecom operators can protect their consumers from these kinds of problems by merely following the know-your-customer requirements.

KYC Solutions - A Solution to the Problems of the Telecom Industry 

By implementing a KYC strategy, all of these issues can be resolved. The telecom sector is quite popular and is now the one much popular. As a result, they must use online know-your-customer solutions to keep scammers out of their network and safeguard the procedures for their real clients.

Final Thoughts 

The fact that criminal activity is a problem for online firms nowadays is not shocking. It is astonishing that they disregard the rules that restrain these behaviors. Identity fraud affects a large sector of the economy like telecom. Online know-your-customer services are the best method to stop these frauds and give their clients a frictionless online experience.