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South Africa has been the site of many cases involving SIM Swap fraud – and two companies are actively responding to the scams.

What is SIM Swap fraud? It’s a phishing scam that gets someone to release logon names and passwords for mobile or Internet banking – as well as their mobile number.

Then the criminals claim to be the user and get a mobile operator to send them a new SIM card. Next, the criminals stop the real user’s SIM card. It’s then all clear for the criminals to fraudulently get payments from the user’s bank account.

Among those most impacted by the scam are customers of South Africa’s ABSA bank and MTN (News - Alert), a mobile operator, news reports from South Africa said.

To combat the scam, MTN and ABSA set up a task team. The team expects to soon come up with an “improved authentication process.” This may include a dual authorization process and require an additional confirmation from the real user.

“Protecting our customers means tightening up our systems development to both improve security and service delivery,” Eddie Moyce, MTN chief customer experience officer, was quoted by The Next Web.

“We are working tirelessly with MTN and the South African Banking Risk Information Centre (SABRIC) to ensure that the systems and security are comprehensive and robust. Collaborating with MTN on reaching a joint solution has allowed us to tighten the screws on this method of eCrime,” Absa’s head of digital channels and payments, Adrian Vermooten, told My Broadband.

“MTN would like to assure its customers that the matter is being tackled at the highest levels at both organizations,” Moyce added in a statement. “Their protection is important to us.”

This month, the South African police arrested a suspect on charges connected with SIM Swap fraud. The arrest came as the result of a sting operation.

Lilly Zondo, general manager of Business Risk at MTN, said “MTN’s forensic team and Centurion’s Wierdeburg police have made great strides in the tracking and monitoring the suspect’s activities.”