Telecommunications operators Cell C, MTN and Telkom welcome the launch of two universal network APIs, which will be available in South Africa, to help combat fraud and digital identity theft in sectors such as banking, finance, insurance and retail trade.
22North Dakota February 2024, Johannesburg: As part of the global GSMA Open Gateway initiative, South African operators will now be able to implement number verification and SIM sharing (world-class application program interfaces (APIs)) to coincide with the start of MWC 2024. They will be available for all. Mobile commerce and financial institutions and developers will create new services to combat digital fraud and protect South Africa's 47 million mobile subscribers.
South Africa saw a 24% increase in reported incidents of digital banking fraud in 2022, according to a report published last year by the South African Banking Risk Information Center (SABRIC). The surge, which resulted in cybercriminals stealing more than R740 million from unsuspecting victims, was mainly attributed to the growing number of fraud cases involving banking apps and online banking.
Given the alarming rise in digital banking fraud in South Africa, standardization of APIs by mobile network operators (MNOs) presents a promising avenue to mitigate such threats. By leveraging their infrastructure and expertise, MNOs can improve security measures within banking applications and online banking platforms. They can also implement robust fraud detection and prevention mechanisms, bolstering the overall resilience of digital banking systems against cyber threats.
The new APIs guarantee 100% privacy and will have important applications in sectors such as banking, finance, insurance and retail.
API standardization 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's a simple evolution path for any business using mobile numbers and SMS one-time passwords. Instead of relying on SMS, number verification can be activated automatically and seamlessly to verify a user's identity. This not only improves the user experience but also eliminates potential problems, such as users not receiving an SMS or facing difficulties due to limited familiarity with the technology.
- SIM swap – is used to check if a given phone number has recently changed SIM cards. This helps 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 changed, which helps it decide whether to approve the transaction or not.
The initiative will benefit developers in South Africa and other parts of the world, helping companies accelerate the growth of digital services and applications.
The GSMA Open Gateway Initiative
GSMA Open Gateway is a network API framework, developed in collaboration with mobile operators around the world, 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 telecommunications industry designs and brings new mobile applications and digital services to market. It fosters interoperability between operators, industry associations, developers and content creators, while complying with all relevant technical standards, regulations and user privacy standards.
From South Africa to Norway, from Brazil to New Zealand, 42 mobile operator groups around the world (representing 237 mobile networks and 65% of global connections) are already part of the initiative.
Angela Wamola, Director of Sub-Saharan Africa at the GSMA, said: “Banking fraud is a growing threat in South Africa, and mobile network operators are strategically placed to work with developers to help banks, financial institutions and merchant providers mitigate risk and protect your customers. The availability of the two APIs to South African operators will equip businesses with additional means to verify that their customers are who they say they are and protect them against identity theft, all while maintaining the user experience, and the GSMA Open Gateway provides developers a unique integration that works between operators.”
Jorge Mendes, CEO of Cell C, said: “Cell C is aligned with creating a collaborative ecosystem to protect consumers. A joint effort is crucial to achieve this goal.”
Saad Syed, CEO of Chenosis, part of the MTN Africa Group, said: “MTN Chenosis is pleased to offer the two APIs to mitigate fraud in the South African market. We are encouraged by collaboration with other mobile network operators to provide a standardized and consistent experience to developers who wish to consume the services.”
Lunga Siyo, CEO of Telkom Consumer and Small Business, said: “Digital fraud is not just a threat to finances but an assault on trust in the digital economy. “We are excited to partner with GSMA to eradicate the vulnerabilities that currently exist.”
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About the GSMA
The GSMA is a global organization that unifies the mobile ecosystem to discover, develop and deliver critical innovation for positive business environments and social change. Our vision is to unlock the full power of connectivity so that people, industry and society thrive. Representing mobile operators and organizations across the mobile ecosystem and adjacent industries, the GSMA offers its members three broad pillars: connectivity for good, industry services and solutions, and outreach. This activity includes advancing policy, addressing today's biggest societal challenges, supporting the technology and interoperability that make mobile devices work, and providing the world's largest platform to convene the mobile ecosystem at the MWC and M360 series of events.
We invite you to learn more at gsma.com
