How do KYC and AML help the telecommunications industry stay protected?

The telecommunications industry is exposed to a high risk of fraud and is subject to particular legal requirements.

Vespia supports you with extensive business KYC solutions and services for a fast, effortless, and, above all, safe onboarding process for your customers, partners, and suppliers, all from a single source.
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Verification for telecommunications industry

Frauds in the telecommunications industry

Any activity by a mobile user can disclose them and their mobile operating business to the risk of dealing with malicious activity.

Users use mobile devices for communication, monetary transactions, work, and more.

Via these devices, they can keep their private and personal information concerning many aspects of life, including online activity such as social media accounts and emails.

But while the little SIMs enable us to navigate and remain connected, if it gets hacked, stolen, or lost, SIM swap attacks become a harsh fact.

That's the KYC side of things. But what about KYB? Decision makers should also focus on whom they are partnering with and getting their supplies from to build their devices.

Let's talk about some widespread frauds happening in the Telecommunications industry.

  • SIM swap

SIM swapping, also known as SIM hijacking, is a new type of fraud that recently became quite popular among cybercriminals. This method concentrates on transferring the command of the victim's phone account from their SIM card to one held by the villain.

  • Phishing

Phishing is a familiar term for a massive type of telecom fraud. Cybercriminals imitate legitimate institutions and interact with the victim by phone, text messages, ads, or emails to steal personal information.

Usually, the fraudster psychologically influences the victim into conducting a particular action, such as clicking a link, opening an attachment, or sharing sensitive data.

  • Vishing calls

Vishing is a type of phishing that involves social engineering (psychological manipulation) to acquire access to the victim's sensitive data and financial information.

It begins with an email pretending to be sent from a bank and requesting to call a particular number to solve some problem with an account; when the victims call, they hear an answering machine demanding them to enter their account number and all the required passwords.

Fraudsters reach the victims by phone, persuading them that it is an acute call from some representative of an official organization, asking them for credentials or money transaction.

Although vishing targets individuals, it is also employed to attack companies by swindling employees and convincing them to convey account information.

  • Smishing

Simply, it's SMS phishing. It can be either an independent scam or a part of the more complex fraud system. Often it takes the form of a text message including a link to a phishing site, where the victims have to sign in and type their data. The notification may also tell them to call a specific number to fix some issues.

  • Partners

When two or more organizations agree to share efforts to conduct business for profit, a partnership is formed. Typically, successful partnerships are built on trust, a shared vision, and complementary skills. Unfortunately, business relationships sometimes do not go as expected, and partnership fraud occurs.

  • Suppliers

Tempted by amazing prices and deals from unknown oversea suppliers? Yes, we know it is very tempting. Check your (potential) suppliers first and only after understanding who they are, make your first order with them.

How can Vespia help Telecom providers prevent fraud via a seamless KYB, KYC and identity verification system?

Know Your Partner (KYP)

How it was traditionally is that if you or anyone in your company realized that you were dealing with a potentially fraudulent partner, you would contact a lawyer to deal with this problem. Nowadays, before even embarking into a partnership relationship, you can verify them and conduct a Know Your Partner (KYP) check to make sure you know who are the companies and the people behind them.

Know Your Supplier (KYS)

Know Your Supplier (KYS) enables businesses to assess suppliers on key risk and compliance parameters, and gives suppliers the opportunity to stay relevant to their client's business needs. Perform business and identity checks to understand how reliable your (potential) suppliers are.

KYC compliance

Identity verification is crucial in pinpointing and preventing fraudulent activities that put telecom operators at risk.

Vespia provides real-time biometric facial recognition solutions. Telecom operators can get accurate identification documents of customers and safeguard the environment for both the customer and companies.

This advanced identity verification solution supports telecom companies running background checks on users. They can efficiently perform checks with KYC (Know Your Customer), KYB (Business Verification) and AML (Anti Money Laundering) frameworks.

Safeguard your reputation

Trust is more noteworthy than ever for telecommunications businesses because users nowadays look for reliable operators. Identity fraud not only causes financial fines but also leads to a loss of reputation.

Vespia provides an automated solution to know your customer, business, partner and supplier better. All of them in only one solution.

Enhance customer experience

A robust identity and business verification system permits telecom operators to enhance the overall experience for their customers. Since customers' onboarding journey becomes frictionless, they feel assured about their relationship with a telecom company.

With Veapia's easy-to-use dashboard, customers' onboarding is no more a hectic task.

Implement Vespia and safeguard your reputation

Comply with AML, KYC, KYB and other security regulations within a few clicks and with a 37x cheaper solution than traditional providers.