SIM Swap: How it Affects Your Customers And How to Fight it

Protecting your customers’ data is now more critical than ever with the rise of SIM swap scams.  

So how do you protect your customers from this scam?

Don’t worry. We won’t leave you hanging.

In this blog, we’ll dive deep into SIM swap fraud. We’ll also touch on how SIM swap affects your business and your customers. 

We’ll share the best ways you can fight against SIM swaps and keep your customers’ accounts secure. 

Let’s dive in.

See: Application Security Risks (Definition, Consequences, Prevention, And Best Practices)

What is SIM swap?

Source

You might be wondering, “what is SIM swapping?” 

SIM swap is a service that lets you change to a different network while retaining your phone number. It’s a legitimate process that provides you with flexibility and convenience. 

But fraudsters have found a way to abuse this service for their benefit. Fraudsters now use SIM swaps to hijack your phone number. 

The fraudsters trick mobile carriers into transferring your phone number to a SIM card they control.

Once they have control of your phone number, they can use it to gain access to your accounts. For example, your email, social media, and financial accounts.

Enough of trying to let the cat out of the bag in bit.

Let’s explore how SIM swap fraud works and why your business needs to guard against it. 

How does SIM swap fraud work? 

Source 

To avoid SIM swap fraud, you must first understand how it works. We’ll give you a detailed description of how a SIM swap works. 

First, the fraudster obtains your personal information through phishing attacks, data breaches, or purchasing dark web information.

Next, the fraudster contacts your mobile carrier and impersonates you. The fraudster might claim that they lost their phone or SIM card and need to transfer their number to a new SIM card. 

This may convince the carrier that they are the legitimate account owner.

The fraudster then gains control when your mobile carrier transfers your phone number. This means they can receive calls and messages intended for you. They even get your one-time passwords (OTPs) for account verification.

The fraudster can now use your phone number to reset passwords and access your email, social media, and financial accounts. 

It is hard to know when you have been SIM swapped. It’s possible that you won’t realise a fraudster has transferred your phone number to a new SIM card until it’s too late.That’s why you must take steps to prevent SIM swapping fraud. 

We’ll cover those steps later in this article.

How SIM swap affects customers?

Source

SIM swap scams can have severe consequences for your customers. The following are some of the ways SIM swap scams can affect your customers:

• Financial losses: A scammer can take your money if they get control of your number via a SIM swap. They can log in to your banking apps or cryptocurrency wallets.
• Identity theft: The fraudster can open new accounts. Or even get credit using personal information. This can affect your customer’s credit score and cause financial problems.
• Account takeovers: Once a fraudster controls your phone number, they can control your online accounts. They might even scam your friends with your social media.        
• Loss of data: A SIM swap attack can cause the loss of essential data. For example, you can lose your contacts and messages stored on your phone.

How to fight SIM swap?

Source

We’ve seen the negative impacts of SIM swap fraud on people. You need to know what to do if you have been SIM swapped and how you can prevent this type of fraud. 

In this section, we’ll discuss how you can protect yourself from SIM swap fraud. We’ll also examine what you should do if you suspect someone has swapped your SIM. 

Here are some things you can put in place to fight SIM swaps:

• Enable two-factor authentication (2FA): With 2FA, you add an extra layer of security to prevent unauthorised access. Consider using SMS-based 2FA. You can use SMSCountry’s OTP service for this. They are affordable and effective against SIM swap attacks. 
• Use a virtual phone number: Consider using a virtual phone number. You can use this to prevent SIM swap fraudsters from targeting your phone number. For example, you can use Google Voice. 
• Check your accounts: Monitor your accounts for suspicious activity. Watch out for activities like unauthorised transfers or password changes. Ensure that you report any suspicious activity immediately. 
• Contact your network carrier: If you suspect any trace of a SIM swap attack, contact your mobile network carrier for SIM swap detection. Your carrier may be able to add extra security measures and protect your account.

Best practices for businesses to counter SIM swap frauds

Source

Looking for ways to keep your customers safe from SIM swap fraud?  Here are some easy ways to prevent these attacks:

• Educate your customers: First, you must educate your customers on SIM swapping and how they can stay protected. You can send out a newsletter with tips on how they can avoid being victims.
• Use two-factor authentication: Your customers need more than a password to access their accounts. For example, they can use an OTP sent to their email or phone.
• Track customer’s account: Keep an eye out for suspicious activity. Check your customer accounts from time to time. Investigate if you notice multiple SIM swapping or changes to personal information.
• Limit personal information access: Consider limiting the personal information that customers can access. Also, ensure that your third-party partners have proper security protocols.
• Provide customer support: Make sure you have a customer support team available.  In case of suspicious activity, they can help your customers and prevent these scams.
• Put in place security protocols: Remember to put in place security protocols. Use encryption and firewalls to protect your customers’ data. Put these in place on your website and third-party platforms.

Save your customers from SIM swap with OTP

You have made it this far.

Now, you know what SIM swap is and how to prevent it.

OTPs are a powerful tool to protect your customers against SIM swap fraud. You can keep your personal information safe with reliable OTP solutions. 

If you’re searching for a way to send OTPs to your customers, use SMSCountry. It is easy to use and has features to secure your customers’ accounts.
So take your security to the next level now. Schedule a free demo to learn about SMSCountry OTP. Or sign up for free today and let SMSCountry protect your customers.