China's major telco operators roll out OTP API to combat online fraud

China's three major telco operators – China Mobile, China Telecom and China Unicom – have launched the One Time Password Application Programming Interface (OTP API) from the GSMA Open Gateway initiative to help fight mobile fraud.

China is the first market where the OTP API has been made commercially available and is also the first Open Gateway-certified API to be launched in the country, according to a GSMA announcement made on Monday.

China joined the Open Gateway Initiative in June 2023.

Launched a year ago, the industry-wide API initiative provides developers with universal access to operators' network capabilities for the development and delivery of mobile applications and online services.

To date, 48 mobile operator groups have joined the GSMA Open Gateway, accounting for 240 mobile networks and 66% of global connections worldwide.

Recently, Chinese technology giants CITIC Telecom, Huawei and ZTE also joined the initiative.

Focused on tackling online fraud

Citing the country's Ministry of Public Security, the GSMA said China has tackled 391,000 cases of telecom and online fraud between January and November 2023.

With online fraud being one of most pressing issues facing e-commerce globally, the GSMA said that – together with mobile operators and channel partners – it is focusing initial GSMA Open Gateway API launches on tackling online crime.

"The launch of the One Time Password API in the world's largest mobile market demonstrates the commitment of China's leading operators in keeping the country's 1.28 billion mobile users safe from cybercriminals," said Mats Granryd, director general of the GSMA, in a statement.

Using the Open Gateway OTP API, developers can improve the security of their mobile apps and online services.

With the service, mobile users can use the OTP to provide proof of possession of a phone number and verify their identity.

The GSMA said the new service provides increased security over single-factor authentication and in card-not-present payment scenarios, helping companies increase consumer confidence and protect users from the risk of fraud.

"As instances of online fraud continue to grow in both scope and scale globally, the GSMA Open Gateway is equipping developers with the tools they need to protect users in the digital space," he added.