Connect with us

Telecom

Clear and Present Danger of Account Takeover Fraud

Published

on

Kindly share this post

Roberto Valerio, founder of RISK IDENT, Europe’s leading provider of new intelligent anti-fraud software has alerted telecom firms to the nature of fraud in telecommunications industry.

 

Valerio, touted as one of the foremost experts on the rise of AI in combating fraud, said that the telecommunications sector is one of the hardest hit industries by the account takeover fraud sweeping the globe.

 

In account takeover fraud, criminals harvest credentials from data breaches and then test them on every website and mobile app imaginable.

 

A small subset of those credentials unlocks accounts because most consumers reuse passwords across multiple sites.

 

Criminals then tap those for different types of fraud from unauthorized bank transfers to illicit purchases.

 

Valerio, said that fraudsters are leaning heavily on telcoms for illegal gains, and both the companies and their customers are feeling the shock.

 

He said “but why is this industry such an attractive target, and what can telcoms bosses do to lessen the damage? Identity theft has reached what experts call “epidemic levels,” largely in part to the sharp increase of data breaches happening around the globe.

 

The U.S. credit bureau Equifax suffered a breach of its network security system last September, which compromised the personal info of 143 million consumers around the world.

 

And this came hot on the heels of 1,800 other security breaches that exposed 1.4 billion data records in just 2016 alone . That same year, the UK telecommunications company TalkTalk was fined £400,000 for a cyber attack that allowed for the personal details of 150,000 customers to be stolen by hackers.

 

While data breaches are scary in their own right, the real nightmare is what criminals do with customer information once they’ve stolen it.

 

“Fraudsters use this illegally obtained info to create new accounts online and, even more damaging, use it to hijack existing accounts. The latter allows for criminals to hide behind the names and account history of good customers to somewhat easily make fraudulent purchases.

Why mobile telecoms are so vulnerable to ATO

Cifas reports that the identity fraud rate in the mobile telecoms sphere rose 60% in 2017 . And the reason the mobile telecoms industry has taken such a beating is based on the industry’s standard business model.

GSM coys.jpg

Fraudsters are particularly attracted to the phone contract model used in Europe, where customers immediately receive a high-value device that they eventually pay off monthly.

 

This system has lured in fraudsters, who’ve found that it’s relatively easy to use a victim’s stolen account details to access his or her account, collect the expensive phone, immediately sell off the device, and leave the victim with the bill and whatever other fallout that occurs.

 

Contract extensions are another door that fraudsters have weaseled through as they continue to target the telecommunications industry. As a way to reduce customer friction, many mobile service providers have eliminated complex re-sign processes. Though this presents convenience and ease to legitimate customers, it also presents a lucrative opportunity for hungry criminals.

 

Fraudsters have realized that they can use stolen data to hijack existing accounts and change a victim’s account details to ensure that the brand new device that comes along with an automatic extension is delivered to an address that they can access. This type of fraud is popular, so much so that there’s even a pricing scale for mobile contract account details on the Dark Web; the closer an account is to a renewal date, the more sellers can demand for the account information, as a big payoff is right around the corner.

 

Unfortunately, telecom firms don’t just experience outside threats. RISK IDENT’s fraud experts have found that it’s becoming more and more common for account takeover fraud to actually happen from within, carried out by telecommunications employees. In such cases, firms’ employees use their administrative access to take over customer accounts, create a bogus contract renewal and collect the phone for themselves. In some cases, resellers and company partners also have the ability to create fake renewals in customer accounts, which is helping drive the high ATO rates in the telecom industry.

 

What telecoms firms can do to lessen identity theft threats

The only surefire way to stop the flood of fraudsters who’ve targeted the telecommunications industry is to close the gaps presented by the mobile phone contract model. This entails predicting where customers may be most vulnerable to fraud and keeping that in mind when constructing a telecom firm’s fraud prevention strategy.

 

Over the past five years, RISK IDENT has identified several account and transaction characteristics that can assist telecoms firms in detecting account takeover fraud. These include:

 

Recent account changes: Nearly all confirmed cases of ATO fraud came with a password, address or e-mail address change within 10 days prior to the transaction.

Expensive purchases: The average order value in account takeover cases is four times higher than other orders. For example, fraudulent orders often include a request for a much more expensive device than the victim’s previous phone.

Customer age: Due to having significantly less technical expertise, older customers are much more likely to be victims of identity theft and account takeovers.

 

Paying attention to warning signs like these and incorporating systems that further predict account takeover vulnerability have the power to significantly reduce ATO fraud in the telecommunications industry. After all, the harder a companymakes it for criminals to commit fraud, the less likely it will be targeted.

 

To find out more about how RISK IDENT’s fraud prevention solutions reduce identity theft and ATO in the telecommunications industry, visit: https://riskident.com/en/.

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

Why Nigeria Must Embrace .ng Now – NiRA Reveals Five Critical Steps

Published

on

Kindly share this post

Nigeria Internet Registration Association (NiRA) has outlined five strategic pathways to accelerate the adoption of the .ng domain and position it as a critical driver of Nigeria’s digital economy.

Why Nigeria Must Embrace .ng Now - NiRA Reveals Five Critical Steps

NiRA

Oluwaseyi Onasanya, Chief Operating Officer of NiRA, presented the framework at a Media Advocacy and Capacity Building Workshop held on April 16.

Onasanya described the .ng domain as a key component of Nigeria’s digital sovereignty, noting that the country has about 65 per cent internet penetration and over 35.6 million Micro, Small and Medium Enterprises (MSMEs) contributing nearly 48 per cent to the Gross Domestic Product (GDP).

She said the first pathway involves mandating the use of .ng domains across all Ministries, Departments and Agencies (MDAs), as well as subnational entities, government vendors and tax remitters.

According to her, this would ensure that all official digital communications with government institutions are conducted through .ng platforms, while also linking domain usage to Corporate Affairs Commission (CAC) registration and procurement processes.

The second strategy focuses on a nationwide awareness campaign tagged “Own Your .ng, Own Your Future,” aimed at promoting the domain as a symbol of national identity, trust and economic value.

Onasanya said the third pathway calls for leadership from the private sector, urging banks, telecommunications companies, startups and SMEs to adopt .ng domains and integrate them into onboarding processes.

She added that the fourth strategy seeks to position .ng as a secure and regulated alternative to foreign domains, enhancing consumer confidence, improving local search visibility and strengthening jurisdictional control.

The fifth pathway centres on expanding the digital ecosystem by strengthening registrar networks, simplifying user experience and integrating .ng domains into internet service providers, digital platforms and national performance metrics.

Onasanya warned that Nigeria’s domain adoption rate remains low compared to global peers, noting that the country has approximately one domain per 855 citizens, far behind countries like Germany, the United Kingdom and China.

She cautioned that low adoption could lead to capital flight, as businesses continue to rely on foreign domain platforms in an increasingly digital global economy.

She also called on the media to drive awareness, shape public perception and promote adoption by highlighting the economic value of .ng domains across sectors.

“Without media, .ng stays technical. With media, it becomes economic,” he said.

NiRA said that over 240,000 .ng domains have been registered so far, with projections indicating continued growth as Nigeria targets a $1 trillion economy by 2030.


Kindly share this post
Continue Reading

Telecom

Tech Shake-Up: Snap Cuts Hundreds as AI Drives Efficiency Push

Published

on

Kindly share this post

Snap Inc., the parent company of Snapchat, has announced the layoff of about 1,000 employees as part of efforts to improve efficiency through artificial intelligence.

Snap Cuts 1,000 Jobs, Cites AI-Driven Efficiency Push

Evan Spiegel, chief executive officer, disclosed this in a memo on Wednesday, noting that the cuts represent about 16 per cent of the company’s full-time workforce and include the elimination of more than 300 unfilled roles.

Spiegel said advancements in artificial intelligence were enabling teams to reduce repetitive tasks, increase productivity and accelerate project execution.

“We believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity and better support our community, partners and advertisers,” he said.

He added that smaller teams using AI tools had already delivered meaningful progress across key initiatives.

The California-based firm said the restructuring would help cut over $500 million in annual costs by the second half of the year, providing a clearer path to profitability.

Spiegel described the decision as difficult, expressing regret over the impact on affected employees.

“This is an incredibly difficult decision, and I am deeply sorry to the colleagues who will be leaving us,” he said.

Snap joins a growing number of technology companies downsizing their workforce while citing productivity gains from artificial intelligence.

The company has undergone multiple rounds of layoffs in recent years amid stiff competition from rivals such as Instagram, TikTok and YouTube.

Meanwhile, activist investor Irenic Capital Management recently disclosed a 2.5 per cent stake in Snap, calling for cost-cutting measures, including a review of its Spectacles smart glasses unit.

Shares of Snap rose by more than 7.5 per cent following the announcement, although the stock remains down compared to earlier in the year.

Data from Layoffs.fyi shows that more than 72,000 employees have been laid off by nearly 90 tech companies globally so far in 2026.


Kindly share this post
Continue Reading

Telecom

NBC Warns Broadcasters Against Bullying Guests, Passing Opinions as Facts

Published

on

Kindly share this post

National Broadcasting Commission (NBC) has cautioned broadcast presenters against bullying guests during live interviews or presenting personal opinions as facts, warning that such actions will attract sanctions.

NBC Warns Broadcasters Against Bullying Guests, Passing Opinions as Facts

NBC

In a statement issued on Friday, the commission said it had observed a rise in violations of the sixth edition of the Nigeria Broadcasting Code across news, current affairs and political programmes.

“Broadcast platforms are increasingly being deployed in ways that depart from their core obligation to inform the public with accuracy, balance and professionalism,” the NBC said.

The commission noted that some anchors and presenters were deviating from professional standards by denying fair hearing to opposing views and compromising neutrality during broadcasts.

It stressed that such conduct violates provisions of the broadcasting code, which require impartiality and fair representation of all sides on issues of public interest.

“Henceforth, any anchor or presenter found to have expressed personal opinion as fact, bullied or intimidated a guest, denied fair hearing to opposing views, or otherwise compromised neutrality, shall be deemed to have committed a Class B breach,” the statement added.

The NBC also raised concerns over the growing use of broadcast platforms by political actors to promote divisive, inflammatory and unverified content.

It emphasised that broadcasters bear full editorial responsibility for all material aired, including live programmes, and cannot transfer that responsibility to guests.

The commission reiterated its commitment to enforcing strict compliance with the broadcasting code, warning that violations involving hate speech, incitement and imbalance would attract appropriate sanctions.


Kindly share this post
Continue Reading

Trending