Telefonica taps Chainlink to fight SIM-swap attacks

Telefonica, Spain's largest telecom brand, has announced a partnership with Web3 Oracle provider Chainlink to enhance protection against SIM swapping – a popular attack vector used by hackers to reach their targets.

On February 15, Telefónica said that the strategic alliance between the two parties will “enable secure communication” with smart contracts with other GSM open gateway APIs. The integration uses Chainlink to filter data from various sources with a common network APIs framework to provide access to operator networks.

A SIM swap attack is a form of identity theft where hackers take over a victim's mobile phone number, accessing information such as crypto accounts, credit cards or bank accounts. It is a widespread and efficient method of hacking that even large organizations such as the United States Securities and Exchange Commission have fallen victim to.

Telefónica writes that the integration will enhance transaction security and add a layer of security to blockchain transactions by enabling smart contracts to submit data requests to an application programming interface (API). This ensures that “no unauthorized changes have been made” to the SIM card of the device.

According to Telefonica's chief metaverse officer, Yaiza Rubio Vinula, this is the “first use case” of GSMA's Open Gateway SIM Swap API, which positions the company as a “Web3 adapter.” She said this will allow them to be with developers as the industry moves into the so-called “web of the future.”

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This isn't the first time Telefonica has dived into the Web3 space. In the year In 2022, the Madrid-based company enabled payments in Bitcoin (BTC), Ether (ETH) and other cryptocurrencies on its online marketplace. This allows users to pay in crypto when purchasing tech products. Crypto exchange Bit2Me announced the merger on Telefonica Metaverse Day on September 29, 2022.

Recently, Telefónica partnered with Nova Labs, the company behind the Helium network, to use blockchain technology to reduce infrastructure costs and expand coverage in Mexico. On January 24, Telefonica announced that it will use Helium mobile hotspots to expand its coverage in Mexico City and Oaxaca.

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