Cracking the Code on Fraud
How SLC’s SIM-Based Verification Transforms KYC, KYB, and Login Security

How SLC’s Technology Monitors and Mitigates Cybercrime Across Critical Market Verticals
The fusion of AI, quantum computing, and cloud-based services has ushered in a transformative era for industries worldwide. From streamlining operations to sparking breakthroughs, the potential seems limitless. Yet, this digital revolution has a darker side: a booming cybercrime economy now valued at a staggering $9.5 trillion—ranking as the third-largest economy on the planet. With businesses becoming more reliant on cloud infrastructure, the stakes have never been higher. High-profile breaches are showing that vulnerabilities to fraud and cyberattacks are escalating rapidly, threatening not just operations but the very trust and stability that organizations are built on.
Bloomberg
This white paper dives deep into an issue that no business can afford to ignore: the urgent need for smarter, more adaptive fraud prevention strategies. As cyber threats grow more sophisticated, Know Your Customer (KYC) processes are grappling with identity spoofing and deepfake technologies, Know Your Business (KYB) systems face challenges in verifying complex corporate ownership structures and forged documents, and login protocols are under siege from credential stuffing and advanced phishing schemes. These processes - cornerstones of trust in the digital age - have become prime targets, exposing companies to reputational and financial risk.
But all is not lost. By embracing innovation and rethinking outdated approaches, businesses have the power to turn vulnerability into strength. SLC is at the forefront of this effort, delivering secure SIM-based identity verification technology that revolutionizes fraud prevention and user authentication when cloud solutions fail. By seamlessly integrating secure verification methods into KYC, KYB, and login protocols, SLC empowers businesses to stay one step ahead of cybercriminals, safeguarding not only their systems but also the trust of their customers. This paper offers practical, forward-thinking solutions to help organizations protect their systems, their stakeholders, and their futures.
Fraud Prevention in the Cloud: A Battle Against Evolving Threats
Fraud prevention in cloud-only ecosystems presents unique challenges that static, outdated methodologies cannot effectively address. Key areas of vulnerability include:
KYC: A Step Behind Identity Fraud
KYC processes are under siege. Cybercriminals increasingly exploit identity spoofing, deepfake technologies, and synthetic identities to bypass verification systems. Fraudulent activity during digital onboarding not only exposes organizations to financial crime but also threatens regulatory compliance, leading to costly penalties and reputational damage.
KYB: Untangling Complex Business Structures
Verifying businesses is no simpler. KYB systems face challenges such as opaque corporate ownership structures, cross-border legal inconsistencies, and fraudulent documentation. Shell companies and fake entities are often used to evade compliance checks, making it difficult for organizations to identify legitimate businesses.
Logical Access: A Gateway for Cyberattacks
Login protocols are another weak point. Cybercriminals employ tactics such as credential stuffing, phishing, and brute force attacks to gain unauthorized access. The shift to cloud-only environments exacerbates these vulnerabilities, as static passwords and weak authentication methods fail to keep pace with evolving threats.
Recent high-profile cases underscore the severity of these threats:
TD Bank’s Money Laundering Scandal: In October 2024, TD Bank agreed to pay over $3 billion in penalties after pleading guilty to violating federal money laundering laws. The bank’s inadequate anti-money laundering (AML) controls facilitated over $400 million in illicit transactions, leading to significant financial and reputational damage. (Reuters)
Zelle Fraud Allegations: In December 2024, the Consumer Financial Protection Bureau (CFPB) sued major banks, including Bank of America, JPMorgan Chase, and Wells Fargo, alleging failure to protect users from widespread fraud on the Zelle payment network. Since Zelle’s launch, it’s estimated that $870 million has been lost to fraud, with victims receiving little to no assistance. (Investopedia)
Wells Fargo Account Fraud Scandal: Wells Fargo faced significant penalties for opening unauthorized accounts on behalf of customers without their consent. In 2016, the bank was fined a combined total of $185 million, leading to the firing of nearly 5,300 employees and substantial reputational damage. (Wikipedia)
Unauthorized Access to Robinhood Systems: From June 2021 through November 2021, Robinhood failed to adequately address known risks posed by a cybersecurity vulnerability related to remote access to their systems. In November 2021, a third party obtained unauthorized access and downloaded information related to millions of individuals who had provided that information to Robinhood. (SEC)
Why Traditional Fraud Prevention Falls Short
Traditional fraud prevention systems are rooted in static processes that fail to meet the demands of today’s rapidly evolving threat landscape. KYC and KYB rely on one-time, static document verification methods that cannot adapt to shifting risks or account for dynamic behavioral patterns. Login protocols often depend on outdated measures like static passwords and two-factor authentication, both of which are highly susceptible to credential theft and social engineering attacks. Additionally, many cloud-based systems lack tamper-resistant hardware, leaving them vulnerable to sophisticated exploits such as AI-generated fake IDs. This rigidity creates a reactive, patchwork approach to fraud prevention, forcing institutions to continuously scramble to recover from targeted breaches rather than proactively preventing them.
Fraud via Mail Theft: The persistence of paper checks has become a lucrative opportunity for scammers. In 2022, the U.S. saw a nearly 400% increase in check fraud, causing significant financial losses. Scammers alter checks, deposit them, and quickly withdraw funds before banks can verify the transactions. (The Wall Street Journal)
Internal Bank Fraud: Rank-and-file bank workers have been caught selling client data to online fraudsters, aiding in sophisticated scams that target the savings of Americans. These employees, often the lowest-paid, expose a major vulnerability in bank security. (New York Post)
These limitations underscore the urgent need for a dynamic, adaptive approach to fraud prevention.
The Solution: Continuous Authentication with SLC
SLC’s SIM-based identity verification technology redefines fraud prevention by transitioning from static methodologies to a dynamic, continuous authentication architecture. Built on a foundation of Secure Execution Environments (SEE) and distributed computing principles, SLC’s solution delivers unmatched security and reliability for cloud-only ecosystems.
Key Elements of SLC’s Hybrid Technology Approach
SLC has developed a multi-patents-pending hybrid technology that integrates Mobile Networks (MN), SIM, Internet Cloud (IC), and Node Consensus (NC) components through innovations like Quorum PoA on-chain recordation. This cutting-edge solution leverages secure-core-silicon mobile endpoints (SIMs and eSIMs) to continuously monitor mobile network data, smartphone profiles, and radio frequency (RF) patterns.
By analyzing these data points in near-real-time, SLC dynamically authenticates both human and machine behaviors. The result is unparalleled fraud detection and prevention powered by SLC Identity Metrics (SLC IMs); a unique suite of monitoring tools supported by tamper-proof blockchain recordation.
Dynamic Authentication
SLC replaces outdated, static processes with real-time, adaptive verification mechanisms. Instead of verifying users once and leaving gaps for exploitation, it monitors and revalidates identities in real time, proactively detecting and preventing threats. This transforms fraud prevention from a reactive to a proactive strategy, enabling organizations to outpace evolving risks. Features include behavioral biometrics to detect anomalies in user activity and AI-driven threat detection to adapt to emerging risks in real time.
Secure Execution Environment (SEE)
SLC leverages tamper-resistant hardware to provide an unshakable foundation of trust. Unlike software-based solutions, SEE ensures data integrity and reliability by embedding security at the hardware level.
Distributed Computing Methodology
By decentralizing verification processes, SLC eliminates single points of failure and enhances system resilience. This approach ensures that even targeted attacks cannot compromise the entire system.
SIM-Based Verification
SIM cards provide a globally recognized, tamper-resistant layer of security. By tying identity verification to the SIM card, SLC ensures a level of trust and reliability far beyond what software-based solutions can offer. Unlike static credentials or software-based methods, SIM cards provide tamper-resistant hardware that anchors identity verification to an unbreakable layer of trust. This hardware-backed security ensures resilience against even the most advanced fraud techniques, such as deepfake identities or credential stuffing.
Delivering Tangible Business Benefits
Digital account takeovers represent one of the most damaging forms of financial fraud, costing organizations billions annually. Despite the scale of the threat, 66% of financial institutions continue to rely on traditional authentication methods such as Two-Factor Authentication (2FA) and Multi-Factor Authentication (MFA). These methods include tools like Google Authenticator, Microsoft Authenticator, and SMS one-time passwords (OTP), as well as step-authentication mechanisms like liveness tests and document verification. However, these approaches have limitations. Static credentials and SMS OTPs are vulnerable to interception, while step-authentication adds friction to the user experience and incurs additional costs without fully addressing the root causes of fraud.
Let’s look at SLC’s ID verification technology in action in an example case involving an educational institution:
Login Request: A student or faculty member attempts to log in to the institution’s online portal or application (e.g., for accessing course materials, grades, or administrative systems).
Identity Verification Request: The portal forwards an ID Verification Request to the institution’s authentication system, integrated with the SLC Secure SIM platform.
SIM Mobile Measurements Collection: The SLC SIM applet on the user’s smartphone collects real-time Identity Measurements (IMs) to ensure that the user is using the correct SIM on the correct device, exhibiting typical usage patterns.
Blockchain Recordation and Analysis: These IMs are anonymized, encrypted, and sent to the SLC blockchain for processing and verification. The data undergoes validation within the Secure Execution Environment (SEE) to ensure tamper-proof authentication.
Verification Outcome:
Confirmed ID Verification: If the user’s identity is authenticated successfully, the portal grants access to the requested resources.
Failed ID Verification: If anomalies or suspicious activities are detected (e.g., SIM swapping, abnormal usage patterns), the system flags the attempt, and access is denied. The incident is escalated to the institution’s fraud or IT security department for review.
Access Granted or Denied: For confirmed identities, access is provided seamlessly without requiring additional steps from the user.
For failed attempts, the user receives a notification to verify their identity manually or resolve the issue with the institution’s support team.
Advantages in the Institutional Context:
Enhanced Security
Protects sensitive data like staff records and administrative documents from unauthorized access.
Seamless User Experience
Reduces login friction by enabling “silent authentication” without multiple steps.
Proactive Fraud Detection
Identifies and blocks potential account takeovers or phishing attempts in real time.
Compliance Support
Provides auditable, immutable logs to meet regulatory standards for data protection in education.
The Common-Sense Business Solution
The best part? SLC uses existing mobile networks - no extra hardware, complex setups, or high support costs - making it a fraction of the price of other authentication solutions, which cost on average between $10-20 per user per month for enterprises. The business potential of our solution is clear and present, considering how large institutions frequently face annual fraud numbers in the hundreds of millions of dollars, and government fines in the billions. Our estimates indicate that SLC may reduce fraud by over 50%.
SLC’s SIM Verification integrates effortlessly into existing systems without requiring major overhauls, enhancing the security of KYC, KYB, and login protocols. Its ability to monitor, audit, and optimize authentication processes positions it as a vital tool for combating digital account takeovers while reducing operational costs and improving the user experience. This solution not only strengthens defenses against cybercriminals but also empowers financial institutions to regain control over their digital ecosystems, safeguarding customers and restoring trust in the face of a rapidly evolving threat landscape.
Regulatory Compliance Made Simple
Regulatory compliance is an increasingly complex challenge for businesses operating in today’s interconnected digital world. With ever-tightening global standards like GDPR, HIPAA, and PCI DSS, organizations need solutions that not only protect sensitive data but also demonstrate accountability. SLC makes compliance seamless by leveraging AES 256-bit encryption and Secure Execution Environments (SEE) to safeguard personal and transactional data. Every interaction is recorded on a private-node blockchain, creating transparent, tamper-proof logs that can be easily audited for regulatory reporting and investigations.
SLC’s architecture also enhances KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance by ensuring robust, dynamic identity authentication. Whether it’s verifying customer onboarding, monitoring transactions, or producing immutable audit trails, SLC’s technology simplifies compliance processes while providing the confidence needed to meet regulatory demands. By embedding security and transparency into its systems, SLC empowers businesses to focus on growth while maintaining trust with regulators and customers alike.
Revolutionizing Cybersecurity
The sophistication of modern cyber threats, including AI-driven and quantum-computing-based attacks, requires a radical shift in how businesses approach cybersecurity. SLC addresses this challenge by combining blockchain technology and secure hardware to create quantum-resilient defenses that are far more robust than traditional systems. The tamper-resistant design of SLC’s SIM cards ensures endpoint security that operates independently of potentially compromised platforms like iOS and Android. This means the SLC SIM serves as an independent auditor, validating data integrity even in cloud-only environments.
With its ability to continuously monitor hardware, software, and RF data, SLC provides proactive threat detection that identifies and mitigates risks in real time. Automated responses neutralize vulnerabilities before they can be exploited, significantly reducing the window of opportunity for attackers. By integrating these advanced capabilities, SLC ensures businesses are not just reactive to threats, but actively fortified against them, securing critical operations and protecting sensitive data.
Transforming Industries with SLC Technology
SLC’s solutions are as versatile as they are powerful, enabling businesses across industries to strengthen their security, streamline compliance, and enhance fraud prevention.
In financial services, for example, SLC transforms customer onboarding by dynamically verifying identities through behavioral and device data, ensuring secure and seamless user experiences. Similarly, e-commerce platforms benefit from SLC’s ability to prevent fake account registrations and authenticate high-value transactions, reducing fraud risks for both buyers and sellers. In healthcare, SLC safeguards patient data during telehealth interactions while validating provider credentials to prevent fraudulent claims.
Cryptocurrency platforms also stand to gain significantly. SLC authenticates wallet creation and monitors transactions for compliance with AML and Counter-Terrorism Financing (CTF) regulations, helping exchanges build trust in a volatile market. Meanwhile, cross-border remittance services can leverage SLC to authenticate senders and recipients, ensuring compliance with international financial standards – creating the possibility for groundbreaking steps forward in the world of microfinancing in developing nations. For corporations, SLC supports vendor verification, employee onboarding, and secure remote work, enhancing operational integrity across the board.
By adapting to the unique needs of diverse industries, SLC provides the tools organizations need to protect their ecosystems, comply with regulations, and foster trust at every level.
The SLC Vision: Securing the Digital Future
SLC is more than a technology, it’s a vision for the future of fraud prevention, compliance, and cybersecurity. By combining the power of dynamic authentication, immutable blockchain recordation, and real-time threat detection, SLC offers a comprehensive solution that addresses today’s most pressing challenges while anticipating the needs of tomorrow.
Whether it’s helping financial institutions prevent fraud, enabling e-commerce platforms to secure transactions, or supporting compliance in highly regulated industries, SLC empowers businesses to operate with confidence in an increasingly complex digital world. In doing so, it not only protects operations but also builds the trust and resilience needed to thrive.
The future of secure digital ecosystems is here, and SLC is leading the way.