On Thursday, the Nigerian Communications Commission (NCC) officially moved to kill this vector for financial fraud with the unveiling of the Telecoms Identity Risk Management System (TIRMS).

It’s a cross-sector source of truth designed to let banks and security agencies verify if a number has been swapped, barred, or recycled before they grant access to services.

But while the NCC is playing offense, MTN Nigeria is playing realist-in-chief.

Is it the API Problem?

According to Anthonia Adaba, MTN’s manager of telecoms laws and regulations, the industry already has a SIM-swap notification system involving the NCC, the CBN, and NIBSS. The catch? Hardly any banks actually use it.

MTN’s argument is simple: why build a new, expensive platform (TIRMS) if the financial institutions, the people who actually need the data to stop fraud, won’t integrate with the existing one?

Without a CBN mandate forcing banks to plug into the pipe, TIRMS risks becoming another ‘Zombie API’, functionally brilliant but practically ignored.

The 14-Day Warning: A Logistics Nightmare?

The NCC’s proposed customer first rule, requiring telcos to give users a 14-day heads-up before deactivating a line, also hit a snag during the consultative forum.

The regulator wants a 14-day notice via email or alternative numbers. MTN’s counter-arguments show most SIM registration data doesn’t include mandatory emails; even where emails exist, they are often unverified or dead, and if a user’s primary line is inactive (the reason for deactivation), they likely aren’t checking a secondary line either.

MTN is pushing for a best-effort approach rather than a rigid mandate that could lead to regulatory fines for failed deliveries.

The Airtime Refund Question

One interesting nugget for the everyday consumer: MTN is asking for clarity on what happens to your money when your line is deactivated.

They’ve proposed a framework where subscribers can reclaim unused airtime balances within a specific window, provided they can prove ownership.

Dr. Aminu Maida, the executive vice chairman of the NCC, is clearly pushing for a unified digital ecosystem, but the success of TIRMS won’t depend on the code the NCC writes.

It will depend on whether the CBN can force Nigeria’s banks to sit at the table.

As the digital economy grows, a phone number (MSISDN) is no longer just for calls; it’s a digital passport. The NCC is trying to make sure that passport can’t be forged, but the telcos are reminding everyone that even the best passport is useless if the border guards (the banks) don’t check it.

Quick look:

• Target and Monitoring: Establish targets for the prevention of fraudulent traffic which should be included within management reporting.
• Processes: Adhere to i3Forum recommended processes to detect and avoid fraud.
• Blocking: Implement measures to block identified fraudulent numbers and ranges.
• Payment Flows: Take all reasonable actions to avoid payment flows to the instigators of fraudulent traffic.
• Reporting: Commit to sharing information regarding suspicious traffic flows with upstream and downstream parties.

The GLF, a leadership body representing the international connectivity industry, and i3Forum a membership-funded organization of the international communications ecosystem, have announced the publication of a new industry framework designed to combat fraudulent activities.

This is an important step towards addressing the rising issue of fraud in the SMS channel. This initiative comes in response to the increasing misuse and exploitation of SMS, a channel that has grown to become truly ubiquitous since Neil Papworth sent the world’s first text message, “Merry Christmas,” on 3 December 1992.

With over 8.8 billion mobile phone subscriptions worldwide, the relevance and magnitude of SMS is undeniable.

However, the GLF Annual Report 2023 highlighted a concerning trend: the number of carriers reporting an increase in the volume and impact of fraudulent messaging traffic had nearly doubled over the past 12 months.

This surge in SIM fraud poses significant financial and reputational risks to businesses, consumers, and  end-users in the telecoms industry.

The emergence of Artificial Intelligence Traffic has further exacerbated the urgency for a unified response.

Recognising this, the GLF and i3Forum have collaborated to create a simple yet effective framework that aims to restore trust and integrity in the SMS channel.

This Commitment outlines best practices and guidelines for carriers and businesses to identify, mitigate, and prevent fraudulent activities.

“I welcome this strong industry statement and commitment to expand our collective fight against fraud in SMS. The work we have done collaboratively across the GLF and with the i3Forum to combat voice fraud has had a significant impact on the market. Our aim is to deliver the same for SMS by removing financial incentives and processes that have led to the loss of trust in SMS. SMS is the only globally pervasive channel that supports consumers and businesses which makes this commitment as an industry to protect the channel is welcome, necessary and urgent. I encourage all international service providers active in the space to come forward, sign the commitment and adhere to its principles”, said Eloy Rodriguez, Chair of the GLF’s Anti-Fraud Working Group and Chief Wholesale Officer at Telefónica Global Solutions.

When carriers sign this Commitment, organisations commit to adhering to these five principles, ensuring a proactive stance against fraud while maintaining compliance with relevant regulations and upholding contractual rights and obligations.

“We are proud to be part of this significant initiative alongside GLF. This framework is a testament to our industry’s dedication to safeguarding the integrity of SMS communications. By uniting our efforts and sharing critical information, we can effectively combat fraudulent activities and protect both businesses and consumers from the growing threat of SMS fraud. Our collective action is crucial to maintaining the trust and reliability of SMS as a vital communication channel,” said Christian Michaud, Vice Chair of the i3Forum.

The GLF and i3Forum encourages all stakeholders in the telecoms industry to adopt and adhere to the guidelines set forth in the document.

Through collective action and commitment, the industry will be able to effectively address the challenges posed by SMS fraud and continue to provide a secure communication channel for users worldwide.

The 28 companies who have already signed their commitment to these principles are as follows:

• Airtel Business
• Angola Cables
• Apelby
• Axiata
• Bayobab
• bics
• BT
• BTS
• CMC Networks
• DT
• du
• e&
• GMS
• HGC
• iBasis
• Identidad
• Legos
• Orange Wholesale
• Reliance Jio
• Retelit
• stc
• Sunrise
• Telarix
• Telefonica Global Solutions
• Telin
• Telstra
• TIM
• UGI

In a message to customers via email, the bank explained that SIM swap fraud occurs when scammers use your phone number to access your accounts.

According to the bank;

“Scammers impersonate you and trick your mobile phone’s carrier into activating a SIM card, which gives them control over your phone number. It means scammers could potentially enter your username and password when logging onto your online banking platform and then receive the SMS verification code to access your account.

“Protect yourself against SIM swaps, don’t share personal information that fraudsters could use to impersonate you (such as your mother’s maiden name or birthplace) on social media. Never reveal your logins and passwords for your mobile phone, online bank, or credit card accounts to anyone. Please always report any suspicious activity”.

Further, the Pan African bank reminded the customers that the bank will not ask them to provide their personal or financial information, stressing that when they receive an email that includes a link to a website, they should ensure that the website is legitimate before visiting the site.

Ecobank further, urged customers not to respond to emails, SMS and unsolicited calls from people they don’t know asking for your personal or banking information.