Safaricom’s new SIM-Swap-Check Anti-fraud solution will restrict withdrawals from suspicious transactions in an effort to curb mobile money fraud.
The solution to be undertaken jointly with six banks is aimed at reducing rising cases of mobile money fraud that has seen customers lose millions.
According to Safaricom The solution provides banks with an Application Programming Interface (API) through which they can query when a customer’s SIM card was last swapped.
The information then enables them to make a decision on the likelihood of a customer’s transaction being fraudulent and additional steps to be applied.
Safaricom CEO Peter Ndegwa, said the rapid growth of Kenya’s fintech sector has equally brought about evolving threats 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 Ndegwa.
Safaricom has announced that it has already signed up six banks to the SIM-Swap-Check Anti-fraud and ATM Vicinity Check solutions meant to empower the banks in reducing fraudulent transactions
The SIM-Swap-Check solution provides banks with a free monthly quota of checks and a premium tier above for additional checks above the free quota.
Safaricom says the solution was developed following an analysis of fraud reports to tackle social engineering of customers to conduct fraudulent SIM swaps.
In addition to the SIM Swap Solution, Safaricom is also providing banks with an ATM Vicinity Check solution that ensures an ATM withdrawal can only be conducted if the transacting customer is in the same location as the ATM.
