Consumer contract fraud has been particularly problematic in the South African telecommunications industry, as fraudsters provide false identification and banking details to obtain services and devices illegally. To ensure that innocent low-risk customers are being issued with contracts, robust vetting is required for which sufficient time and resources are not always available.
Adding insult to injury, many telcos have been losing out on opportunities to onboard customers online from remote locations due to an inability to successfully verify such prospects. It is now more crucial than ever that telcos upgrade their customer vetting processes while streamlining the onboarding journey. The critical requirement is for a quick and seamless customer onboarding process that simultaneously mitigates risk.Current Solutions
Telcos are now using technologies such as digital ID Verification, Fingerprint Verification and Facial Verification to confirm customer identities. Furthermore, to ensure that the bank account credentials of customers are legitimate and that accounts are able to be successfully debited, Bank Account Verification software and Debit Order Authentication applications have been useful tools to guarantee successful debit order collections. This is showing promising increases in collection success rates.
Since all such software applications allow for onboarding customers online via sophisticated user portals, telcos are benefitting from the opportunity to onboard remotely and to not limit themselves by their retail infrastructure.
Since the integration of digital verification tools, telcos in South Africa have reported seeing an 85% reduction in monthly fraudulent activities and as much as a 54% revenue growth per annum - have a look at The Telkom Mobile Case Study for more details.
Through digital verification, telcos in SA are broadening their customer base and rendering each new contract issued an effort-less, risk-free and 100% secure transaction.