New laws are about to be introduced which place the onus on telecommunication service providers to obtain and keep information on their clients. While contract users already have to provide personal information to the network operators, the new amendments to the Regulation of Interception of Communications and Provision of Communication-related Information Act tightens control on the pre-paid market.
These regulations aim to ensure the lawful use of cellphones and SIM cards. The proposed Act requires users to report lost, stolen or destroyed cellphones and SIM cards at any police station. Failure to do so will constitute a criminal offence.
The Act, however, is geared to address unlawful actions. Criminals often exploit telecommunications in the planning, organisation and commission of organised crime, cash heists and serious violent crimes. Anonymously owned prepaid mobile phones are ideal for these purposes and the new legislation`s focus on identifying owners of pre-paid cellphones will provide the law enforcement agencies with the means to trace criminal activity.
While I agree that there are practical considerations in implementing the new laws, such as ensuring that systems are in place to manage critical consumer data at the point of sale, I do believe these laws will greatly benefit the wireless and online retail industries. These benefits include:
Combating online fraud
Online businesses will be able to utilise the personal details linked to a cellphone number to combat credit card fraud.
Anonymously owned prepaid mobile phones are ideal for criminal purposes and the new legislation`s focus on identifying owners of pre-paid cellphones will provide the law enforcement agencies with the means to trace criminal activity.
Dr Pieter Streicher, MD, BulkSMS
A fraudster does not have to be in possession of the card and can purchase merchandise online by simply providing someone else`s valid credit card details. In this instance, the merchant carries all the risk, and should the owner of the card query the transaction the merchant could lose the money received, as well as the goods sold. This type of crime is very difficult to root out, as the crime could be committed anywhere in the world from an online terminal.
To significantly reduced online fraud, during the transaction the merchant would require the purchaser to enter a security code SMSed to their cellphone. If the purchaser used their own phone but the credit card of someone else, the merchant can report the discrepancy. The identity of the purchaser, via the cellphone number used, would be accessible to the police. Fraud could still take place but would require the use of a recently stolen phone that had not as yet been reported as stolen.
Curbing sex abuse calls
Persons wishing to report sex abuse calls, such as paedophiles making lurid calls to minors, will be able to report the cellphone number of the incoming calls to the police. The police would be able to trace the identification of the caller due the new Act`s cellphone and SIM registration requirements.
Preventing the delivery of adult content to mobile phones
Many parents are concerned about the easy accessibility of adult content on cellphones At present it is almost impossible for mobile operators to prevent the delivery of adult mobile content to phones of children if they do not have the identities (hence age) of SIM card owners.
Without this age verification measure, in order to regulate adult mobile content, mobile network operators would have to ban all pre-paid phones from accessing the Internet via GPRS or 3G.
Many parents regard this risk of accessing adult mobile content as the major reason for not allowing their children to own cellphones. The proposed legislation will significantly reduce these problems, and as a result, increase regulated cellphone usage among children.
* Dr Pieter Streicher holds a PhD in engineering, is the MD of BulkSMS, and a member of WASPA.
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