SIM and device scams on the rise

MTN wants to alert customers to the realities of fraudulent upgrades, SIM swaps, holiday hoaxes and SMS scams.

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SIM and device scams are on the rise, as is typical of this time of year, says mobile operator MTN.

Ike Dube, GM of business risk management at MTN SA, says there has been a pattern in theft and fraud that arises during the holiday season and advises cellphone users to be careful.

MTN is asking cellphone users to be extra vigilant when shopping. If a mobile device gets stolen, it is not only the device that is compromised, but also the information stored on it and the SIM card, explains Dube.

"If a device is lost or stolen, the user must immediately report it to the police and contact MTN straight away, to allow us to deactivate the SIM.

"This will ensure that the SIM cannot be fraudulently used, where you as a customer are left with a massive bill to settle months later, in light of the fact of the SIM that is still being used."

This is an opportunistic crime, fraudsters are continually looking for opportunities to scam unsuspecting customers, says Dube.

MTN wants to alert customers to the realities of fraudulent upgrades, SIM swaps, holiday hoaxes and SMS scams, as well as identity theft.

Should a customer suspect irregular activity, they should alert the MTN Customer Operations via its contact centre straight away, says Dube. "Customers should not give out their personal documents or details such bank accounts and ID numbers."

When travelling, says Dube, data and roaming costs are a top concern of which cellphone users are not always mindful. "MTN urges those who are travelling during this period to ensure data roaming is switched off, as roaming overseas can be a costly experience."

Hein Koen, co-founder of Flickswitch, says for companies who have come to rely on SIM cards for machine-to-machine communication and other enterprise-level solutions, fraud can be crippling.

Any company with a sizeable SIM base has experienced fraud in some way - it is one of those things that often gets hidden in the plethora of bills a company receives, he adds.

"We have seen a few cases each totalling well over R1 million. To say that SIM fraud can put a small company out of business is not an exaggeration. Fortunately, there are several preventative measures decision-makers can take to minimise the risk."

Companies should evaluate whether they have the tools in place to manage their SIM cards effectively, says Koen. There are online tools available to take the hassle out of managing prepaid SIMs and devices in real time, he adds.

However, working with a trusted service provider who has the expertise and know-how to do it means an organisation can focus on meeting its core business deliverables, says Koen.

Another very useful measure to take is for decision-makers to lock down their devices in the field - there is software that can do this, either on a firmware or device level, he adds.

With a mobile workforce using tablets and smartphones, such software can be used to minimise risk even further, says Koen.