According to the City of London Police’s ActionFraud division, an average of £4,000 was stolen from victim’s bank accounts in the scam.
If you’re writing about this story, I’ve got a few comments from Matt Hooper, SVP at IMImobile outlining what banks and mobile operators can do to address this issue. I’ve copied in his thoughts below:
Matt Hooper, SVP, IMImobile:
“Now that banking on mobile devices is the norm, SIM swap fraud is becoming a growing concern across the industry. There is serious pressure on banks and mobile operators to address the issue before serious reputational damage is done; with the Financial Ombudsman Service putting more responsibility on banks to compensate affected customers and banks facing financial penalties if SIM swap fraud is not dealt with.”
“Despite advances in technology, SIM swap fraud is still quite difficult to detect and prevent. As a result, banks are still trying to find effective ways of identifying when a customer’s mobile number has been fraudulently swapped and ported onto a new device.”
“Solving the problem on the frontline is easier said than done, as fraudsters are extremely versatile and agile to adjust their phishing techniques. To cut off the problem at source, customer service and fraud operations teams in banks and mobile operators arguably need to work cooperatively to tighten processes on detecting potentially fraudulent activity.”
“The devil is in the data. Banks should make better use of customer data such as SIM card information, device type and location data, and consumer behaviour analytics. Mobile operators meanwhile should work more closely with banks, using customer engagement specialists to put better practices and technologies in place to combat SIM swap fraud. While in the past banks’ fraud prevention systems have relied on and analysed historical customer data, real-time checks are now becoming available across all mobile networks thereby reducing the need for use historical data. Ultimately, banks need to use the customer data generated by mobile networks and devices to identify risk before a customer loses their money.”