French Mobile Operators Unite to Combat Online Fraud with New Network APIs

In a significant advancement for online security, France's leading mobile operators—Bouygues Telecom, Free, Orange, and SFR—have collaborated to launch pivotal network APIs as part of the global GSMA Open Gateway initiative. This initiative comes at a time when online businesses are grappling with rampant fraud and increasing threats to digital identities.

The newly developed APIs, KYC Match and SIM Swap, aim to fortify online transactions against fraudulent activity. They utilize the standardized CAMARA framework to ensure that services are consistent across different mobile operators in France, making this a unique launch, as it's the first instance globally where all four major operators are providing these APIs simultaneously.

Statistics show a striking 37% rise in online transactions in France since the onset of the COVID-19 pandemic, with an impressive total value of €2.35 billion in 2023. A staggering 77% of these transactions were conducted via mobile devices. However, this surge in digital commerce is met with a dark undertone—80% of French companies reported experiencing fraudulent attempts online, with nearly half noting an uptick in such incidents over the last year. Additionally, cases of digital identity theft have soared, increasing by 40% over the past four years, as reported by the French Ministry of Interior. This context underscores the essentiality of the newly launched APIs in shielding consumers from potential threats.

These APIs were meticulously designed and vetted in collaboration with several financial establishments, including BforBank, a digital arm of Credit Agricole, and Fortuneo, a subsidiary of Credit Mutuel Arkéa. These financial institutions utilize the KYC Match API to streamline the customer verification process while fortifying their defenses against identity theft. Over twenty companies in France have already adopted these telecom APIs to advance their fraud prevention strategies, ensuring robust customer identity checks during both onboarding procedures and financial transactions.

The GSMA Open Gateway initiative's essence lies in catalyzing the collaboration of mobile operators from around the globe. This cooperation facilitates the creation of digital solutions that function seamlessly, regardless of the device or the operator involved. Since its inception, an impressive 67 mobile network groups—covering 278 networks and accounting for three-quarters of global mobile connections—along with 26 channel partners, have joined the initiative.

As digital fraud continues to evolve, initiatives such as these are vital for enhancing consumer protections. The advancement of the KYC Match and SIM Swap APIs is poised to create robust barriers against illicit activities, ensuring a safer and more secure online transaction environment for consumers in France and possibly beyond.

With these developments, the French mobile industry is clearly on the forefront of tackling one of the most pressing issues in today's digital landscape, setting a strong precedent for nations worldwide to follow suit. As this initiative unfolds, it will be crucial to monitor its impact on reducing online fraud and protecting consumer identities in an ever-connected world.