SIM-swap fraud has been a persistent problem in Nigeria, and although numerous measures have been put in place to address it, the search for a viable solution continues.
Between 2019 and 2023, Nigerians reportedly lost about ₦12.5 billion to telecom-related financial crimes, according to the Nigeria Communications Commission (NCC). These crimes are usually perpetrated through a combination of SIM-swap fraud and other social engineering practices.
MTN Nigeria says it has a solution to the niggling SIM-swap fraud, but banks and their customers must pay the telcos to build a security layer.
Understanding SIM-swap fraud and how it works
There are two primary ways in which SIM swap fraud occurs.
The first scenario is the traditional SIM-swap attack. A fraudster gains control of a victim’s phone number by having it ported to another SIM card.
The perpetrator visits a Mobile Network Operator’s (MNO) outlet and reports the target’s SIM as lost or damaged. The operator tries to confirm the phone number, NIN linked, and other account details — the fraudster provides these details, most of which were found on social media or via social engineering.
With the new SIM, they can activate account recovery or password reset requests. Once they receive OTPs and transaction alerts, they may be able to compromise financial accounts.
The second scenario is more subtle and, in many cases, more dangerous.
A customer travels abroad or stops using a phone line for an extended period. The line becomes inactive and is eventually reassigned by the telecom operator to a new subscriber. The new owner then begins receiving SMS messages intended for the previous owner, including banking alerts and other sensitive information.
Victoria Fakiya – Senior Writer
Techpoint Digest
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