The challenge
The telecommunications industry is a prime target for cyberattacks due to its vast customer base and the valuable data it manages.
The number of fraud cases has increased over the years, with high volume of hardware damages and financial losses. Fraudsters use various tactics, including SIM card swapping, phishing attacks, and unauthorized access to compromise user accounts. To counter these threats effectively, telecommunications companies must adopt robust security measures, and 2FA method is a front-line defense which is being widely used.
Our challenge centred on developing a customized solution, to be included on the current online purchase order process from a Telecommunication client. The main goals were:
- Reducing and track fraud cases during online purchase orders;
- Enhance security and customer trust;
- Develop a solution following a “white label” approach (applicable for more brands);
- Reducing the number of financial losses and damaged hardware due to fraud orders.
- Following the trends along with market competitors.
What we did
- This project resulted in an intensive analysis for a known Telco company, the solution consisted in implementing Two-Factor Authentication (2FA) feature in the existing online customer’s purchase process.
- Enhancing security and customer trust, as also focused to reduce fraud cases during online purchase process.
- New API interfaces were integrated along with customer authentication services (user’s information source of truth).
- The project was designed following the “white label” approach, allowing us to apply the solution to different Telecommunication brands.
- Customer’s interactions were tracked, allowing us to identify the number of successfully authenticated customers, that were able to proceed with their purchase orders, likewise the aborted, failed cases and the number of attempts.
- Dashboards are also available for following-up and track customer data.
The results
PreventionThe primary goal of implementing 2FA via SMS in purchase orders is to mitigate fraud. By requiring an additional authentication step, telecommunications companies can significantly reduce the likelihood of fraudulent transactions, leading to a decrease in financial and hardware losses.
Security2FA adds an extra layer of security to the purchase order process. This means that even if a fraudster obtains a user’s login credentials, they would still need access to the user’s mobile device to complete the transaction. This enhanced security safeguards sensitive customer data.
MonitoringSMS-based 2FA allows for real-time monitoring of user accounts and transactions. Unusual or suspicious activities can be detected promptly, enabling timely responses to potential threats.
Authentication2FA mitigates the risk of unauthorized access and account takeovers. By requiring an SMS code, even if a hacker has a user’s password, they won’t be able to gain access without the second factor – the SMS code.
GDPR ComplianceImplementing 2FA via SMS can help telecommunications companies meet regulatory GDPR (General Data Protection Regulation) compliance requirements related to data security and customer’s privacy.
Customer TrustWhen customers see that their telecommunications provider takes proactive steps to protect their accounts and transactions, it builds trust. This trust can result in improved customer loyalty and a stronger reputation for the telecom company.
Prevention
The primary goal of implementing 2FA via SMS in purchase orders is to mitigate fraud. By requiring an additional authentication step, telecommunications companies can significantly reduce the likelihood of fraudulent transactions, leading to a decrease in financial and hardware losses.
Security
2FA adds an extra layer of security to the purchase order process. This means that even if a fraudster obtains a user’s login credentials, they would still need access to the user’s mobile device to complete the transaction. This enhanced security safeguards sensitive customer data.
Monitoring
SMS-based 2FA allows for real-time monitoring of user accounts and transactions. Unusual or suspicious activities can be detected promptly, enabling timely responses to potential threats.
Authentication
2FA mitigates the risk of unauthorized access and account takeovers. By requiring an SMS code, even if a hacker has a user’s password, they won’t be able to gain access without the second factor – the SMS code.
GDPR Compliance
Implementing 2FA via SMS can help telecommunications companies meet regulatory GDPR (General Data Protection Regulation) compliance requirements related to data security and customer’s privacy.
Customer Trust
When customers see that their telecommunications provider takes proactive steps to protect their accounts and transactions, it builds trust. This trust can result in improved customer loyalty and a stronger reputation for the telecom company.
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