MTN is exploring the implementation of a one-time-PIN (OTP) system for any transactions on a customer's contract, as a way to help curb contract fraud, it says.
This after an ITWeb reader accused the telecoms operator of not doing enough to protect him from a fraudulent contract being added to his MTN billing account.
MTN SA chief customer experience officer Ideshini Naidoo told ITWeb the telco was looking into applying OTPs "for any transaction that is taking place on a customer's contract, or when there are any changes to the account". She says the system would allow customers to decline any transaction on their contract that they are not aware of.
"This early warning system will ensure we are in a better position to detect fraud even before it happens," Naidoo says.
MTN currently sends an SMS to a customer's primary number when it receives an application to add additional SIMs to an account. It also sends a follow-up SMS when these SIMs are approved. Naidoo says that in addition to possible OTPs, MTN is investing in a biometric solution to curb fraud challenges.
The MTN customer, who wishes to remain anonymous, said he had an additional fraudulent contract added to his MTN account, which pushed his debit order up to over R3 900 when his usual monthly bill is just R329.
"I believe MTN has done nothing at all to protect me from this fraud, I was never alerted for changes to my account, never alerted to a new contract and never alerted to the fact that my e-mail address has been removed from their system," the customer told ITWeb.
MTN confirmed it knew about the fraud case and Naidoo says the customer in question was the victim of identity theft. MTN, however, says it did send the customer a notification SMS when the application to add the extra SIM was submitted, as well as a second SMS notifying him that the application has been approved.
The matter has since been resolved and the additional fraudulent SIM has been deactivated and the customer's account credited.
"The proliferation of new mediums of communicating such as social media has opened another arena for identity theft," according to Naidoo.
"MTN urges customers to reduce the likelihood of falling prey to identify theft on social media by taking certain precautions, including familiarising themselves with their privacy settings on social media in order to protect their data."
Customers are also cautioned not to open suspicious e-mails or links as these are some of the methods used to phish for data," Naidoo adds.
In March, MTN said it was putting additional systems in place to improve security after reports emerged of hundreds of thousands of rands being siphoned out of MTN customers' First National Bank accounts due to an apparent SIM swap scam. Changes from MTN SA included the telco saying it would only process SIM swap requests during working hours in an attempt to tighten security measures and avoid fraud.
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