SIM-Swap Fraud is a common attack where fraudsters use Fake IDs, to receive a copy of another person’s SIM card, in order to authenticate and validate online purchases and access the user’s bank accounts.
Failure to weed out fraudulent IDs at any entry point into the digital ecosystem, can produce a domino effect and facilitate all sorts of financial crimes.
Many countries now require Pre-Paid SIM card purchasers to undergo strict Identity Verification to help combat financial crimes.
Enrolling customers digitally and verifying their identity requires more than traditional checks in credit databases or electoral registers, as a fraudster may use stolen and public data to impersonate the real person.
One of the leading kinds of frauds against Telecom providers is Subscription Fraud at the point of sale, which often includes Identity Theft. The consumer acquires telecom services, with a Fake or Stolen ID, without any intention of paying and in some cases the fraudulent subscription is used as a launchpad to carry out additional types of fraud.
After the onboarding is complete the individual gains a “cherished record” in a database, used by “traditional background screening” firms, giving access to additional services including Mobile Banking, Mobile Payments, TV and Internet.