How scammers steal phone numbers: a new dispute in Israel
Israeli banks and the Ministry of Communications have entered into a conflict over methods of combating cyber fraud, in which criminals steal phone numbers to intercept SMS codes. Banks demand stricter rules for changing operators, while the Ministry opposes this, offering a technological alternative—secure access to a database of number portability. The sticking point is the cost of implementation.
Israeli banks and the Ministry of Communications have entered into a sharp conflict over methods of combating cyber fraud, in which criminals steal victims' phone numbers to intercept SMS confirmation codes. The scheme is based on illegally porting a number to another operator—gaining control of the SIM card, criminals intercept one-time passwords for accessing bank accounts. The Banking Association demands strict restrictions when changing operators, including additional identity verification and a temporary block on receiving bank codes. The Ministry of Communications opposes this, stating it would harm competition in the telecommunications market. The ministry has established a working group with the Bank of Israel, which proposed an alternative: providing banks with secure access to a centralized database of number portability. The system could check in real time whether a port has occurred and, if it coincides with suspicious account activity, require enhanced identification. The main obstacle is the issue of funding. The Ministry insists that banks should bear the costs of servers and infrastructure. Financiers refuse to pay, demanding legislative restrictions. The ministry also notes that more reliable biometric technologies already exist on the market, but banks are saving money and are in no hurry to implement them.