1Kosmos a digital security company has developed a technique to prevent online fraud
1Kosmos has developed SIM (subscriber identity module) binding capabilities for the 1Kosmos BlockID distributed digital identification platform in India to combat online fraud.
The company claims that by using this technology, businesses would be able to comply with RBI Advisory Guidelines dated October 13, 2021, which aim to combat internet retail banking fraud.
BlockID checks a user’s mobile number against the number registered with their financial institution or employment using a mix of SIM detection and SMS verification to guard against attacks that seek to register an unauthorized device/phone number on a customer’s account.
Because of the introduction of digitalization, cyber-attacks surged by 500% during the epidemic.
According to Siddharth Gandhi, 1Kosmos’ Chief Operating Officer for APAC, “In India, OTP theft is fairly common.
A naïve consumer is approached by a fraudster under the premise of updating their KYC form and is eventually duped into disclosing bank account information, which is then used to transfer huge sums of money from the victim’s account.
1Kosmos BlockID’s new capabilities will help to prevent a large number of similar incidents. OTP fraud must be avoided at all costs. Prevention is preferable to treatment or detection.”
The business claims to be able to explain how BlockID SIM Binding works.
1Kosmos customers (bank, payment provider, company, etc.) send a link to end-users through email. The BlockID app is launched when the recipient (customer, employee, etc.) clicks on the link. This starts a procedure that looks for a single or dual SIM card. The user is then given the option of selecting the SIM card associated with their service provider or company. The SIM and phone number are then verified by BlockID to ensure that they match the phone number on file with the service provider or employer. If the account, user, and device are all validated, the account, user, and device are all connected.
In 2020, India would already have lost roughly Rs 1.24 lakh crore owing to cyber-attacks.
The incidence of cybercrime (incidents per lakh persons) in the country increased from 3.3 percent in 2019 to 3.7 percent in 2020, according to statistics from the National Crime Records Bureau (NCRB).
In 2020, 4,047 incidents of online banking fraud took place, of which 1,093 cases of OTP fraud, 1,194 cases of credit/debit card fraud, and 2,160 cases of ATM fraud.
According to the NCRB, Uttar Pradesh has the highest number of cybercrime instances, with 11,097, followed by Karnataka (10,741), Maharashtra (5,496), Telangana (5,024), and Assam (5,024). (3,530). Karnataka had the highest crime rate at 16.2 percent, followed by Telangana (13.4 percent), Assam (10.1 percent), Uttar Pradesh (4.8 percent), and Maharashtra (4.4 percent).