Six Banks Sign Up Safaricom’s Sim Swap Anti-Fraud Solution

Six banks have joined Safaricom’s SIM-Swap-Check Anti-Fraud service, the company has revealed.

The solution gives banks access to an API (Application Programming Interface) that allows them to find out the most recent SIM card switch for a customer.

Using the information, they can decide if it is likely that a customer’s transaction was fraudulent and whether further action is necessary.

“The rapid growth of Kenya’s fintech sector has been accompanied by a rapidly evolving threat environment 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,” Safaricom CEO Peter Ndegwa said.

“At Safaricom, we have developed SIM-Swap-Check and ATM Vicinity Check solutions that we have made available to banks to empower them to reduce fraudulent transactions,” he added.

With the SIM-Swap-Check system, banks receive a free monthly check quota in addition to a premium tier for checks above the free quota.

According to Safaricom, the solution was created after a study of fraud reports in order to combat customers who manipulate others to carry out fraudulent SIM swaps.

Safaricom also offers banks an ATM Vicinity Check solution, which assures that an ATM withdrawal may only be made if the customer making the transaction is nearby the ATM, in addition to the SIM Swap Solution.

The ATM Vicinity Check service is provided without charge.