Six Kenyan banks have partnered with telecommunications giant Safaricom to utilize its SIM-Swap-Check Anti-fraud solution. The new solution provides banks with an Application Programming Interface (API) that enables them to check when a customer’s SIM card was last swapped. The technology will help the banks assess the possibility of a fraudulent transaction and take additional measures as needed.
Safaricom’s CEO, Peter Ndegwa, highlighted the growing threat environment to both customers and fintech operators in Kenya, saying it is necessary for different players to partner around innovations that protect customers and their funds. “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,” Ndegwa said.
The SIM-Swap-Check solution was developed by Safaricom after analyzing fraud reports, with the aim of combating social engineering of customers to conduct fraudulent SIM swaps. Banks will receive a free monthly quota of checks, and additional checks can be purchased as part of a premium tier.
In addition to the SIM-Swap-Check solution, Safaricom is also providing banks with an ATM Vicinity Check solution that ensures an ATM withdrawal can only be conducted if the transacting customer is in the same location as the ATM. The ATM Vicinity Check solution is being offered to banks at no cost.
The partnership with six Kenyan banks marks a major milestone for Safaricom and the country’s fintech industry, as more players look to leverage technology to prevent fraud. The move comes at a time when mobile money transactions are on the rise in Kenya, and the threat of fraud is becoming increasingly prevalent.
The six banks partnering with Safaricom are KCB Bank, Co-operative Bank, NCBA Bank, Equity Bank, Diamond Trust Bank, and Standard Chartered Bank.
The new anti-fraud solution is expected to provide a safer, more secure banking experience for customers and reduce the losses incurred by banks due to fraudulent transactions.
