On Thursday, the leading telecommunication company in Spain, Telefónica, entered into a strategic partnership with Chainlink to safeguard customers from financial losses. Lately, investors have suffered losses of substantial amounts to hackers and fraudulent schemes.
The rise of crypto-related crimes has forced the Telefónica and Chainlink teams to step up and address the menace. In the February 15 announcement, the two companies agreed to leverage their proprietary tools to address SIM swap attacks.
Telefónica Join Forces with Chainlink
The report demonstrated that the hackers launched SIM swap attacks to gain unauthorized access to customers’ funds. Under the partnership agreement, Telefónica will integrate the Chainlink software on its GSMA open gateway API to enhance secure connections.
The report demonstrated that the proposed integration would allow data verification across different sources using the Chainlink tools. A statement from the Telefónica spokesperson shows that the proposed integration will boost transaction security and convenience.
The spokesperson confirmed that integrating Chainlink tools will add an extra security layer to blockchain transactions. He argued that integrating extra security protocols will streamline the distribution of information on the Telefónica API.
The spokesperson confirmed that the proposed development will prevent SIM cards from unauthorized access. A statement from the chief metaverse officer at Telefónica, Yaiza Rubio Viñuela, confirmed that the upcoming upgrade will position the Telecom company as a Web3 enabler.
Effect of SIM Swap Attack
She explained that the Chainlink integration will support the use of Telefónica’s GSMA Open Gateway SIM Swap API, which allows the developer to access several operator networks. The report demonstrated that the GSMA supports around 1000 mobile operators and businesses to explore the Web3 ecosystem.
The executive confirmed that the partnership will enable Telefónica to leverage the power of blockchain for secure networks. She believes that integrating blockchain-inspired technology will improve the delivery of real-world data on-chain.
Viñuela restated that the proposed integration will address SIM swap attacks that have impacted the loss of confidential data and finances. Lately, the hackers have become more creative in executing their unlawful activities.
Telefónica Set to Invest in Web3 Projects
The report indicates that hackers have been using SIM swap attacks to obtain sensitive information about a company or government entity. The hackers have primarily been targeting the Web3 industry to steal measurable funds.
A review of the Telefónica website demonstrated that the partnership came at the appropriate time when the telecom company sought to invest in Web3-oriented initiatives.
A few weeks ago, the Telefónica team partnered with the team behind Helium Network Nova Labs to leverage blockchain power in its operation. The partnership with Nova aims to enable the Telefónica team to lower its operational costs and expand its footprint in Mexico.
