Telstra Teams up With Aussie Banks To Block SIM Swaps and Porting Fraud

Telstra Teams up With Aussie Banks To Block SIM Swaps and Porting Fraud
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SIM swaps and porting fraud are on the rise, so, to counter this trend, Telstra is teaming up with Australian banks to try and block this precursor to identity theft and serious financial crime.

In an announcement made on Thursday, Telstra said it has started working with organisations, such as those in the banking industry, to make it harder for criminals to steal your identity and your money. Telstra will introduce its fraud detecting tech at the SIM swapping or porting stage, before any action is undertaken.

“When you apply to transfer money from your account, there are several checks and balances to ensure that you are who you say you are, especially when transferring to a new recipient. Banks and credit unions will make a number of queries on your behalf to make this determination,” Telstra explains.

“A recent SIM swap or port out on a user’s mobile number might indicate that the person who has access to that mobile service and is receiving one-time codes, might not actually be who they say they are. This is where we come into it.”

According to Telstra, when it gets a request from a bank, it will provide a rating (in the form of a number on a risk scale) which gives an indication of whether there has been any recent fraud, that is SIM swaps or port out activity for the mobile service. Telstra said this is essentially a form of identity with that organisation.

But what if you’re legitimately swapping your SIM?

Well, Telstra said the fraud tech it’s implementing, and the info it gives over, simply help other organisations piece together the puzzle.

“It does not automatically result in you not being able to proceed with a transaction, it simply indicates to the bank or other organisation to obtain more information before proceeding,” Telstra said. “The information we provide simply raises a flag.”

Telstra said it is also looking at how its SIM fraud-detection tech could be applied in retail, insurance, transport and logistics, social networking and even online gaming.