As cyber threats become increasingly sophisticated and regulatory requirements grow more stringent, telecom operators are turning to innovative digital identity solutions to address these competing demands. The implementation of advanced Know Your Customer processes and anti-fraud measures has emerged as a critical focus area for the industry, transforming what was once viewed primarily as a compliance burden into a strategic opportunity for differentiation and enhanced customer trust.
With the introduction of eIDAS 2.0 and its European Digital Identity Wallet, the sector is set to transform again: by introducing a standardized, secure, and interoperable framework across the European Union, eIDAS 2.0 will simplify compliance while enhancing fraud prevention measures.
KYC & Anti-Fraud
Know Your Customer (KYC) regulations play a crucial role in the telecom industry, ensuring that mobile operators verify the identity of their customers before activating services. This process helps prevent identity fraud, SIM swapping, and illegal activities such as money laundering or terrorism financing.
Telecom companies use various verification methods, including government-issued IDs, biometric authentication, and database cross-checks, to confirm customer identities. With the rise of digital transactions and mobile-based financial services, regulatory bodies worldwide are enforcing stricter KYC requirements, pushing telcos to adopt more advanced, automated solutions to streamline compliance while enhancing customer experience.
Beyond KYC, telecom operators implement a range of anti-fraud measures to combat cyber threats and financial fraud. AI-driven fraud detection systems analyze call patterns, data usage, and transaction behavior to flag suspicious activities such as SIM cloning, account takeovers, and international revenue share fraud. Multi-factor authentication, blockchain-based identity verification, and real-time risk scoring further strengthen security measures. As criminals employ increasingly sophisticated tactics, telcos must continuously evolve their security strategies to safeguard both their customers and their networks.
Shaping the future of digital identity verification
Increasingly, regulatory frameworks like eIDAS 2.0 in Europe are shaping the future of digital identity verification, providing telcos with standardized, interoperable tools to enhance KYC compliance while reducing fraud risks.
eIDAS 2.0 is set to revolutionize digital identity verification in the telecom industry by introducing a standardized, secure, and interoperable framework across the European Union. By providing telcos with a unified approach to electronic identification, eIDAS 2.0 simplifies compliance with stringent KYC regulations while enhancing fraud prevention measures.
The framework ensures that digital identities are authenticated in a way that is both legally binding and resistant to tampering, reducing the risk of SIM swap fraud, identity theft, and other malicious activities. This shift not only strengthens security but also fosters cross-border trust, allowing telecom providers to verify users seamlessly across different EU member states.
Combatting fraud with the EUDI Wallet
A key component of eIDAS 2.0 is the European Digital Identity (EUDI) Wallet, which will further streamline KYC processes by enabling real-time, verifiable identity checks. Customers will be able to use their digital wallets to securely share identity credentials with telecom providers, eliminating the need for manual document submissions and reducing onboarding friction. This not only enhances user experience but also decreases dropout rates during registration, boosting customer acquisition.
Moreover, by integrating the EUDI Wallet with automated background checks, telcos can swiftly detect fraudulent attempts while ensuring compliance with data protection laws. As digital interactions continue to grow, eIDAS 2.0 and the EUDI Wallet will play a crucial role in creating a safer and more efficient telecom ecosystem.
Innovation at Orange
At MWC 2025, Marianne Mohali, Head of the Networks Strategy Department at Orange, provided insight into the telecommunications giant’s approach to identity management and future digital wallet plans. Working in network innovation, she explained that the company currently manages customer identity through traditional ID cards while leveraging SIM card technology for network authentication.
The company showcased its anti-fraud APIs at MWC, which offer enhanced security verification capabilities. These tools can validate legitimate customer requests by cross-referencing SIM card location data with service requests and payment activities. Orange has implemented various “pieces of control” to verify that real humans, rather than automated systems, are accessing their services.
While acknowledging that Orange hasn’t yet developed “a full digital wallet with the gathering of all that information,” Mohali confirmed that such technology is actively being developed at the innovation level. She noted Orange’s participation in digital identity standardization bodies, indicating their commitment to the space. Though unable to provide a specific launch timeline for their wallet solution, she confirmed it remains firmly on the company’s strategic roadmap.
