#Paris #France #GSMA #KYC Match #SIM Swap

French Mobile Industry's Bold Step Against Online Fraud

In a groundbreaking move, France's four leading mobile operators—Bouygues Telecom, Free, Orange, and SFR—have joined forces within the framework of the GSMA Open Gateway initiative to tackle the rising concern of online fraud and digital identity theft. They have announced the rollout of two new network Application Programmable Interfaces (APIs), dubbed KYC Match and SIM Swap, aimed specifically at providing app developers and enterprises with the tools needed to enhance identity verification processes and reduce instances of fraud.

The KYC Match API, a first of its kind globally to be adopted by all major operators in a single country, allows businesses to verify the identities of new customers more effectively. This initiative comes at a time when online transactions in France have surged by 37% since the onset of the COVID-19 pandemic, reaching an impressive €2.35 billion in 2023, with a staggering 77% conducted on mobile devices. However, alongside this growth, a disconcerting 80% of French companies have reported experiences with online fraud attempts, and 45% of these firms have identified a notable increase in such incidents over the past year.

According to data from the French Ministry of Interior, the number of cases concerning digital identity theft has soared by 40% over the last four years. This highlights an urgent need for advanced protective mechanisms against fraud, underscoring the significance of the newly launched APIs. By adding an extra layer of security to mobile identities, these APIs represent a proactive approach to safeguarding consumers.

The development of these APIs was conducted in close collaboration with notable financial institutions like BforBank and Fortuneo, which utilize KYC Match to streamline customer onboarding processes. These operators have rigorously tested the APIs in the French market, ensuring they meet industry standards while delivering reliable results. Currently, over twenty companies within France are leveraging these telco APIs to mitigate incidents of account takeover fraud while concurrently verifying customer identities during transactions.

Worldwidely, the GSMA Open Gateway initiative fosters collaboration among mobile network operators, driving the creation of digital products that function seamlessly across diverse devices and networks, regardless of geographical boundaries. Since its inception, the initiative has attracted participation from 67 mobile network groups, encompassing 278 networks that collectively represent three-quarters of global mobile connections, along with 26 channel partners.

As France takes a significant leap in enhancing its digital infrastructure, this robust response by leading mobile operators signifies a critical evolution in the fight against online fraud. By embracing these new technologies, businesses in France not only protect their customers but also contribute to a more secure digital environment. As they continue to build on these advancements and expand their collaborative efforts within the GSMA initiative, the expectation is that such innovations will set a benchmark for other nations to follow, ultimately leading to a safer online landscape worldwide.