Although cases of SMS fraud such as spoofing or smishing are extremely rare, when they do occur they can cause significant harm to the victim, while having an incredibly negative impact on consumer trust. SMS fraud also inflicts major reputational damage to any bank, brand, mobile network and messaging provider that is associated with it. And that’s not to mention the estimated US$ 7.7bn that SMS fraud costs the industry in lost revenue each year.
As a global leader in A2P messaging, we at Sinch take the protection of consumer trust extremely seriously and are pro-active in our mission to accelerate market clean-up. Because of this, we decided to get involved in the conception and development of the Mobile Ecosystem Forum (MEF)’s Trust in Enterprise Messaging (TEM) service and Code of Conduct, which we are very proud to say launched earlier this month.
MEF Global Board Director Robert Gerstmann spearheaded this initiative, stating that “protecting consumers from fraud is high on Sinch’s priority list.” Robert went on to say that “having the opportunity to be so heavily involved in something that will serve to shape the future of the industry in such a positive way was a real honor for us.”
The Code has been developed alongside 30+ participants, including MNOs Telefonica, Telenor and Vodafone, signalling providers and messaging companies, and represents the most comprehensive cross-collaborative initiative to date aimed at mitigating the risk of SMS fraud and protecting consumers from harm. The global code sets out best practice for everyone operating within the A2P SMS sector, and is based on 10 principles offering guidance on commercial, procedural and technical requirements as well as an emphasis on consumer protection.
Messaging providers and aggregators that comply with the code are able to carry the TEM badge; which serves as a powerful symbol of their commitment to preserving consumer trust, as well as providing a safeguard for any brand or enterprise looking to buy A2P SMS.
By leading cross-industry collaboration, we are confident that a new watermark in the fight against SMS fraud can be set. Which can only be of benefit to everyone involved. Except the fraudsters – sorry guys.