Malaysia’s operators launch API service to fight online fraud

Malaysia's major mobile network operators have revealed plans to launch a federated network service aimed at supporting online businesses in addressing fraud and digital identity theft.

The initiative, spearheaded by CelcomDigi, Maxis, U Mobile, Telekom Malaysia (TM) and YTL Communications, seeks to provide enterprise developers across industries such as banking and online retail with access to a common service known as the Number Verification API. This effort forms part of the broader GSMA Open Gateway initiative.

Federated approach

By introducing federated access, the new service is designed to operate across all participating operators, allowing each to maintain control over their own data, policy, and revenue. The system aims to offer interoperability and cross-network coverage, enabling businesses to connect their digital services to operator network intelligence more efficiently.

The Number Verification API will allow developers to verify the mobile numbers of their users by matching against real-time network data, represented as a potentially more secure alternative to the traditional use of SMS-based one-time passwords for authentication. This process is intended to help reduce incidents of digital scams while providing a smoother experience for end users.

Albern Murty, Acting Chief Executive Officer of CelcomDigi, described the collaboration as a collective technological step forward. He said:

"This collaboration is a technological milestone that represents how Malaysia's operators can collectively lead in shaping a trusted and inclusive digital future. It marks a pivotal step towards building a safer, seamless digital ecosystem for businesses and consumers - one that protects Malaysians from scams, inspires confidence in digital services, and fuels innovation across ASEAN. We are pleased to join forces with industry peers in pioneering secure, API-driven solutions that strengthen trust and open new pathways for the region's digital economy to grow."

Building on previous work

According to Maxis Chief Executive Officer Goh Seow Eng, Maxis has already contributed to the adoption of telecom APIs in the country. He stated:

"As an early supporter of the GSMA Open Gateway initiative, Maxis has been a key driver in the adoption of telco APIs in Malaysia. We have already demonstrated the power of the Number Verification API to combat digital fraud through two key initiatives: our Mobile Identity solution for Malaysian enterprises, and a landmark regional collaboration with operators in Thailand and Singapore. Building on this foundation, we are fully committed to this industry-wide collaboration to accelerate API-driven innovation, creating a more seamless mobile experience and building a more secure digital Malaysia for everyone."

U Mobile's Chief Information Officer, Neil Tomkinson, indicated that U Mobile had already launched a developer portal supporting GSMA-certified APIs and was now collaborating on the federated Number Verification API initiative. He said:

"U Mobile is the nation's newest 5G network provider, and we are committed to enabling safer digital spaces for all Malaysians to thrive and reap the benefits of next generation technologies. Apart from being the first telco in Malaysia to launch Open Gateway developer portal with two GSMA-certified APIs, today we are proud to also be part of the federated access launch of Number Verification API with industry peers. We believe this latest initiative is key to combating digital scam and fraud, as multi-party engagement, information sharing, as well as strategic policy enforcement will definitely enhance customer experience as well as safety online."

Amar Huzaimi Md Deris, Group Chief Executive Officer of TM, reinforced his company's commitment to the collaboration:

"TM is firmly committed to this collaboration. With our mobile core network ready, and through close partnership with GSMA and other telcos, we will ensure a seamless and secure experience for enterprises in Malaysia and across our global customer base through federated access. This is a key step in our journey to provide trusted, sovereign and secure digital solutions, protecting businesses and consumers from fraud while powering growth in the digital economy."

Wing K. Lee, Chief Executive Officer of YTL Communications, outlined the company's involvement and the broader context of Malaysia's digital ambitions:

"YTL Communications is proud to collaborate with global industry leaders through the GSMA Open Gateway Programmeme to combat fraud and redefine customer experience. As a champion of Malaysia's digital future, we are committed to building a trusted digital economy-from our class-leading AI Cloud infrastructure to pioneering Malaysia's first sovereign LLM, ILMU, which powers Ryt, our AI-native digital bank. Our participation in the GSMA Open Gateway Programmeme will accelerate these investments and enable SMEs and enterprises alike to thrive in an inclusive, secure, and innovation-driven digital ecosystem."

Julian Gorman, Head of Asia Pacific at GSMA, noted the regional significance, saying:

"Online scams and fraud are a growing concern for everyone across the ASEAN region and unless tackled properly, could erode public trust in the digital economy. So, we commend this proactive initiative by Malaysia's leading operators, which is a milestone for the GSMA Open Gateway programme. By providing banks and online commerce sites with standardized, seamless access to the rich mobile functionality available in networks, we can help accelerate the industry's efforts to tackle online crime."

Global context

The Number Verification API initiative in Malaysia is part of a worldwide GSMA Open Gateway programme, which involves more than 79 mobile operator groups and covers nearly 80% of the world's mobile connections. This inclusion enables the design of digital products that operate consistently across different countries and networks. The open-source CAMARA repository, managed by the Linux Foundation, is central to the technical delivery of these services and forms a core component of the GSMA Open Gateway framework.