QLC Chain helps financial institutions protect their customers from telecom fraud losses

QLC Chain (https://qlcchain.org/) launches “Counter Telecom Fraud Platform” on May 17th, the World Telecom Day. With the platform, financial institutions can build an Application-to-Person (A2P) messages ledger via QLC Chain and their customers can check the authenticity of the message sender. As a result, people won’t easily fall into the trap of phishing messages in disguise of a trusted number.

QLC Chain, Montnets — China’s leading cloud communication provider, and China Association of Communication Enterprises (CACE) joined hands to deliver this platform. It is available for China’s financial institutions to deploy immediately and to provide this value-adding service to their customers.

Blockchain Technology has been acclaimed for enhancing security in the digital world, however, there are few projects that have brought actual benefits to people’s daily life. As one of the leading public chains that focus on providing blockchain powered solutions to the telecom industry, QLC Chain takes a huge step in bringing the real application into the general public’s everyday scenarios.

How Telecom Fraud hurts banks and their customers

A2P messages are everywhere and very often applied as a critical security procedure. For example, the banks which are sending transaction authentication numbers; exchanges sending verification messages; 2FA confirmations.

Most of the times, these financial institutions — banks, exchanges, insurers, to name a few, are bearing the risks that their customers can be scammed. The scammers use pseudo base stations and ask customers to transfer money to a “safe account”, click on a link to collect “awards”, pay for a “utility bill”.

In China, the total number of scam text messages rose from 650 million in 2015 to 1.82 billion in 2018. According to the statistic, there are about 1.6 million people engaging in telecom fraud in China.

In the United Kingdom, the 2018 total asset lost resulting from telecom scam is 354.3 million pounds, which equals to the annual GDP of the Philippines in 2018.

This year, the scammers also boarded the AI train, making robocalls to scam people. First Orion, a company that provides spam call filters to various carriers, predicted that nearly half of all calls to mobile phones will be fraudulent in 2019. Scammers are all around us across all platforms. It feels like an endless war.

How does QLC Chain solve the problem?

The Counter Telecom Fraud Platform can provide a trusted environment for financial institutions to prevent SMS fraud, telephone fraud, and website content fraud.

Nowadays, the fraudsters disguise their numbers, or pretend to be the authorized ones to send fraudulent messages. In this way, the traditional counter fraud methods — passively reporting a scam number, maintaining a blacklist — won’t be effective. People are more gullible to the numbers which they are familiar with and believe to be from a trusted source.

Through the distributed consensus mechanism of blockchain, QLC Chain provides a trusted platform as following, not tampering, and not relying on a single node.

With this new Counter Telecom Fraud Platform, financial institutions can build the communication ledger on QLC Chain with trusted message records. On the other side, the fraudsters’ message won’t be recorded. Take a bank as an example, assuming it adopts the platform. The bank customer receives a message from the bank number about “security risk and needs to change password”. They are skeptical, but they can use the Bank’s mobile App which integrates the checking function, input their own mobile number and message content. The App will send an inquiry to QLC Chain, asking if the message exists. If it is indeed from the bank, the Mobile App will display detailed information with the timestamp, transaction ID, etc.

This is a reliable source traceability platform based on Blockchain technologies, maintained by decentralized nodes of QLC Chain.

QLC Chain will release the video demonstration of the platform on its Youtube platform.