Identity verification has become an essential mechanism to identify and eliminate fraud in each sector and is not limited to the telecom industry. Identity verification is significant for the telecom industry as telecom is directly or indirectly connected with various important services that include health, security, and finance. The industries face various types of identity frauds that include voice phishing calls, account takeover, and call transfer scams. Luckily, these frauds can be detected and eliminated with the help of robust identity verification mechanisms. In this post we are going to discuss the role of identity verification in the telecom sector, before that, we will have a look at common types of fraud in the telecom industry.
Scams In The Telecommunication Industry
Identity fraud is a crucial challenge for the telecom sector as smartphone communication is highly affected. Identity thefts in the telecom industry are rapidly increasing. Fraudsters use the telecommunication system to exploit companies for illegal gains.
Following are the common types of fraud in the telecom sector:
Voice or VOIP Phishing Calls
It is a type of fraud in which scammers deceive people to disclose their financial and personal details for transferring money. During the call, the offenders use social engineering attacks to compel victims to reveal their financial information. The Fraudster might depict himself as a bank employee or law enforcement officer and inform that the account has been compromised. They might request the user to install the software which is usually malware. The VOIP phishing call scams include:
- Revenue tax fraud
- Confiscated bank account
- Investment and loan offers
Call Transfer Scam
Technological advancement has enabled criminals to make use of different fraud methods and call transfer fraud. This type of fraud takes place when the fraudster exploits the IP PBX for making free international calls. Hackers use the compromised PBX to transfer the call to their phones. They can connect with anyone through a phone call without being noticed by the telecom operator. As there is no method of tracking the call that is transferred out of the network, scammers can blackmail or harass without being tracked.
Account Takeover Scam
It occurs when fraudsters gain access to the credentials of the user’s account. In Europe, many telecommunication companies provide an opportunity for their customers to purchase high-value devices in monthly installments. Fraudsters steal the user’s account information and use that information for purchasing costly devices, which they can sell immediately and leave the bill for the victim. The mobile industry is exposed to a higher risk of account takeover fraud.
The fraudster uses a fake identity to gain the trust of victims. Romance scams in the telecommunication sector are quite different. In general, the victim is persuaded to share his account information for buying an expensive device.
Identity Verification Services For Telecom Industry
The role of identity verification in the telecommunication sector is highly critical. It prevents fraud by verifying the authenticity of the end user-provided documents. A robust identity verification system facilitates telecom companies to verify their customers and ensures that the holder is the legitimate owner. Identity verification helps telecom operators to analyze the risk associated with each customer with various checks. Identity verification has several benefits for different industries, let have a look at some common advantages for telecom service providers:
Achieves KYC Compliance
In the case of digital or physical onboarding, the identity verification process plays a dominant role in the detection and elimination of suspicious activities that can harm telecom operators. Employing real-time biometric identity verification systems, telecom operators can retrieve genuine identity verification document information of end-users and establish a secure environment for clients and companies. With robust identity verification services, telecom enterprises can perform comprehensive background checks on their end-users. While complying with the KYC and AML directives with ease.
Trust is becoming more important for telecommunication companies than ever before as customers look for reliable operators. Identity thefts not only damage the reputation of the company but also result in facing penalties.
Improved Customer Experience
The reliable identity verification service facilitates the telecom operators to enhance the overall customer experience. As a customer’s journey becomes secure and seamless, it establishes the relationship of trust between customers and the company.
Following are the advantages of identity verification solutions for telecommunication industries:
- Protects against identity frauds
- Fulfills the KYC, AML, and other global regulations.
- Reduced onboarding cost
- Enhances the customer experience
- Protects market reputation
There are several advantages of online identity verification services for the telecom industry. Artificial intelligence-based identity verification system is a reliable solution as it combines facial recognition and liveness detection for ID verification.