To combat fraud, Telefónica and Chainlink plan to leverage Chainlink Functions, a Web3 developer solution, to connect Telefónica’s OpenGateway APIs with the GSMA Open Gateway.
Telefónica, a global telecom giant based in Spain, has secured a strategic partnership with Chainlink, a decentralized oracle network, to enhance security and functionality in the Web3 ecosystem.
According to an official announcement on Thursday, the collaboration seeks to integrate real-world telecommunications capabilities into blockchain networks, ensuring heightened security for smart contracts and Web3 applications.
Combating SIM Swap Attacks
One of the key objectives of the partnership is to combat fraudulent activities, particularly SIM SWAP attacks. These attacks involve cybercriminals deceiving a cellular service provider into transferring a victim’s service to a SIM card under their control, effectively hijacking the victim’s phone number.
SIM swap attacks have been used by cybercriminals to siphon millions of dollars from the crypto industry, with the US Federal Bureau of Investigation (FBI) revealing that hackers stole approximately $72 million in SIM swap attacks in 2022. To combat fraud, Telefónica and Chainlink plan to leverage Chainlink Functions, a Web3 developer solution, to connect Telefónica’s OpenGateway APIs with the GSMA Open Gateway.
The GSMA Open Gateway is an initiative by the Global System for Mobile Communications Association, of which Telefónica is a member. It provides APIs for developers and empowers businesses to address various challenges within the Web3 space, including fraud prevention and secure account creation.
Chainlink Functions allows users to retrieve data from a wide range of real-world APIs, including public, password-protected, IoT devices, and enterprise systems. The platform also enables developers to run custom computations on the data using Chainlink’s network before delivering the results back to smart contracts.
The unification of both platforms aims to prevent fraud and enable secure account management for users.
A Step Towards a Secure Web3 Ecosystem
Commenting on the partnership, Johann Eid, the Chief Business Officer at Chainlink Labs, said the integration of Telefónica’s OpenGateway APIs into the decentralized oracle network will open the door for heightened security in the industry.
“Bringing Telefónica’s OpenGateway APIs on-chain with Chainlink Functions unlocks novel use cases and greater security for our industry that ultimately better protect users and their assets. We’re excited to bring Chainlink and major telecoms like Telefónica together to further the vision of a verifiable web where users remain in control,” he said.
Telefónica plans to introduce the SIM SWAP API in Brazil through its subsidiary Vivo. The API is designed to verify any unauthorized changes to a SIM card linked with a mobile number, effectively thwarting potential attacks. According to the announcement, the move marks the first application of the GSMA Open Gateway SIM Swap API.
“Telefónica is delighted to strengthen our relationship with industry leader Chainlink and to present the first use case of the GSMA Open Gateway SIM Swap API, which positions us as a Web3 enabler and will allow us to accompany developers towards the web of the future,” said Yaiza Rubio, a senior executive at Telefónica.
Both Telefónica and Chainlink will be present at the Mobile World Congress (MWC) to be held in Barcelona from 26th to 29th February.
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