Mobile identity authentication company Payfone said it secured a patent for a technology that thwarts SIM swap scams, a fast-growing type of fraud.
Payfone said SIM swap scams typically involve fraudsters impersonating customers in order to persuade customer service representatives to transfer the customer’s phone number to a new SIM card in the scammers’ possession.
Once they have control of the customer’s phone number, the hackers then use it as a credential to take over the victim’s bank accounts.
“Payfone’s newly patented API-based solution detects and prevents SIM swap fraud by leveraging the company’s unique partnerships with the U.S.’s largest mobile network operators,” said Payfone.
“As the rate at which consumers engage with their banks, healthcare providers and retailers via mobile continues to grow, so does the sophistication of fraudsters and the tools at their disposal.
“SIM swap fraud is a dangerous new threat that has been robbing victims of their hard-earned savings and costing banks and other financial institutions billions of dollars.
“Payfone’s technology makes it impossible for hackers to complete these types of attacks.
“The API-based solution can immediately detect when a SIM card has been swapped and can notify the customer’s bank when this, or other high-risk/out-of-the-ordinary events occur.
“Because Payfone communicates in real-time with mobile network operators, it has the ability to know at any moment in time whether or not a SIM card has been swapped.”