Over 70% of Kenyans have been the victims of digital financial transaction fraud, or know someone who has, setting up an environment for International mobile technology specialist Myriad Connect to launch an out of band authentication and SIM swap detection solution.
This was according to a recent research by Myriad Connect, 57% sms, 73% phone calls, 17% social media and 19% email were the channels through which Kenyan consumers were targeted to become victims of financial service transaction fraud.
“Financial service transaction fraud in Kenya is costing banks billions and customers their life savings,” says Fabien Delanaud, GM of Myriad Connect. “While financial service transaction fraud is a global issue; Kenya has been a leader in the adoption of mobile and digital payments, which unfortunately brings with it a growing risk of fraud.”
One of the most prolific forms of financial service fraud is SIM swap fraud, which over 90% of Kenyan banking leaders identify as an issue for their organisations. Myriad Connect’s solution uses Unstructured Supplementary Service Data (USSD) providing an entirely out of band channel for authentication on any mobile device real time.
All interactions transmitted over the mobile network, which is separate to the browser or online channel being used by the customer to initiate the transaction. Myriad Connect’s session-based service sends an advanced push notification to open up a conversation between the enterprise and its customer real time.
“Myriad Connect is launching into the Kenyan market to help address digital financial transaction fraud with out of band authentication and SIM Swap detection services that secure digital and mobile transactions and protect consumers and financial services providers alike. As the Kenyan market is a leader in Africa in terms of financial technologies, this market is an ideal launchpad for our innovative solutions into the region,” says Delanaud.
In addition, Myriad’s SIM Swap detection service provides a real time check on the SIM, while no persistent data is held with any third party, providing a more secure service than current two factor authentication services. A clear audit trail is also established, where the user’s identity is verified by a party external to the transaction. This results in a technology that greatly enhances the security of transactions vulnerable to SIM swap fraud.
“In the UK, fraud prevention technologies have helped stop 67% of fraud attempts, and with our out of band authentication and SIM swap detection service, we hope to replicate this level of success in Kenya,” says Delanaud.