Chainlink partnered with Telefónica to enhance security measures against Web3-related hacks including preventing “SIM Swap”attacks.
Decentralized blockchain oracle network Chainlink (LINK) partnered with Telefónica, Spain’s largest mobile carrier and the fourth-largest telecommunications company in European Union. The new collaboration is focused on enhancing security measures against Web3-related hacks and exploits, including preventing “SIM Swap” attacks.
The partnership aims to enhance security for smart contracts that interact with various Application Programmable Interfaces (APIs) on the “GSMA Open Gateway.” The GSMA, comprising over 1,000 mobile operators and businesses, initiated the GSMA Open Gateway project to introduce APIs, facilitating the integration of telecom technologies into the Web3 ecosystem.
According to the written statement, the collaboration represents a notable advancement in incorporating telecommunications capabilities into the blockchain industry. Furthermore, it highlights the necessity for secure oracle networks to provide real-world data on-chain. The interconnected ecosystem will allow for augmenting the functionality and advancing the security of Web3 applications for a more resilient and verifiable digital landscape.
One of the initial applications of this initiative is to mitigate exploits, including “SIM swap,” a hacking method that relies on identity theft and fraudulent impersonation of a financial account holder.
“This integration not only enhances transaction security but also introduces an extra layer of security to blockchain transactions by enabling smart contracts to now make information requests to the API, ensuring that a device’s SIM card has not undergone any unauthorized changes,” said the written statement.
The initial GSMA Open Gateway API, appropriately named SIM swap, is set to be introduced in Brazil by Telefónica. This implementation aims to provide an additional layer of security to blockchain transactions in the region.
Surge in SIM Swapping Attacks Rattles Web3 Sector
The Web3 industry has experienced a growing incidence of SIM swapping attacks. A notable instance occurred in 2022 when $400 million was fraudulently taken from Sam Bankman-Fried’s FTX exchange during its collapse.
Recently, another high-profile case featured Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), who also experienced a “SIM swap” attack. The incident resulted in a misleading post on social media platform X, falsely claiming the approval of spot Bitcoin exchange-traded funds (ETFs), causing a brief disruption in the cryptocurrency market as many anticipated a decision from the commission regarding the approval of investment products.
The new collaboration between Chainlink and Telefónica represents a significant stride in fortifying the security of Web3 applications, ultimately contributing to the resilience and verifiability of the digital landscape.