South African mobile operators combat fraud with GSMA initiative

As part of the global GSMA Open Gateway initiative, South African operators will roll out number verification and SIM swap APIs. These will be open to mobile commerce, financial institutions, and developers to build services aimed at fighting digital fraud and safeguarding South Africa's 47 million mobile subscribers.

Addressing digital banking fraud in South Africa

South Africa saw a 24% surge in reported incidents of digital banking fraud in 2022, according to a report published in 2023 by the South African Banking Risk Information Centre (SABRIC). The rise, which resulted in cybercriminals stealing over USD 38.3 million from unsuspecting victims, was primarily attributed to the growing number of fraud cases related to banking applications and online banking.

Given the alarming surge in digital banking fraud in the country, standardising APIs by Mobile Network Operators (MNOs) presents a promising avenue for mitigating such threats. By leveraging their infrastructure and expertise, MNOs can enhance security measures within banking applications and online banking platforms. They are also able to implement robust fraud detection and prevention mechanisms, bolstering overall resilience of digital banking systems against cyber threats.

The standardisation of APIs allows developers to implement:

• Number Verification: offers seamless verification of a user's mobile number by providing the next generation of strong authentication and user experience. It is a simple evolution path for any business that uses mobile numbers and SMS One-Time-Passwords. Instead of relying on SMS, Number Verification can be seamlessly and automatically activated to verify a user's identity;

• SIM Swap: used to check whether a given phone number has recently changed SIM cards. This helps to prevent account takeover attacks, in which fraudsters take control of the account owner's SIM card using social engineering techniques and stolen personal data. For example, at the time of a financial transaction, a financial institution can check whether the relationship between the customer's phone number and SIM card has recently been changed, helping them to decide whether to approve the transaction or not.
  
  

The GSMA Open Gateway initiative

The GSMA Open Gateway is a framework of network APIs, developed in collaboration with mobile operators worldwide, designed to provide developers with universal access to operator networks.

Launched at MWC Barcelona 2023, the initiative represents a paradigm shift in the way the global telecoms industry designs and brings to market new mobile applications and digital services. It fosters interoperability among operators, industry associations, developers, and content creators, while adhering to all relevant technical standards, regulations, and user privacy standards.

From South Africa to Norway, Brazil to New Zealand, 42 mobile operator groups worldwide – representing 237 mobile networks and 65% of global connections – are already a part of the initiative.