Safaricom has deployed technology that detects customers’ physical location and shares the information with banks, being one of the measures to protect customers from SIM swap fraud that has seen many conned thousands of shillings.
Announcing a partnership with six banks to combat rampant cases of SIM swap fraud, the telecommunications firm said it is deploying ATM Vicinity check and SIM-Swap-Check.
The solution gives banks an Application Programming Interface (API) through which they can query when a customer’s SIM card was last swapped. The information, says Safaricom, then enables lenders to determine the likelihood of a customer’s transaction being fraudulent.
The telco says the solution was developed following an analysis of fraud reports.
“The rapid growth of Kenya’s fintech sector has been accompanied by a rapidly evolving threat environment targeting both customers and fintech operators. It is therefore necessary for different players to partner around innovations that protect customers and their funds to safeguard the gains made,” said Safaricom chief executive Peter Ndegwa.
“At Safaricom, we have developed SIM-Swap-Check and ATM Vicinity Check solutions that we have made available to banks to empower them to reduce fraudulent transactions,” Mr Ndegwa said.
Safaricom explained that the ATM vicinity check solution, also provided to the lenders at no cost, ensures an ATM withdrawal can only be conducted if the transacting customer is in the same location as the ATM.