In a bid to tackle the growing menace of spam calls and fraudulent activities, Truecaller, the renowned caller identification and spam protection app, has made a significant move. On October 6, 2023, the company announced its acquisition of TrustCheckr, a Bengaluru-based fraud detection service. This strategic move aims to bolster Truecaller’s offerings to enterprises and enhance its capabilities in identifying and preventing fraud.
The Problem of Spam Calls and Frauds
Spam calls and fraudulent messages have become an increasingly pervasive issue, particularly in the realm of mobile banking. Many individuals have been on the receiving end of unsolicited spam calls and texts, leading to disruptions in their daily lives. In India, the problem has been particularly pronounced, with a significant number of people facing multiple spam calls daily.
Truecaller’s Core Focus
Truecaller has been primarily known for its core functions of caller identification and spam protection. However, the landscape of fraudulent activities is evolving rapidly, and scammers have adapted to new methods. As a response to this evolving threat, Truecaller recognized the need to elevate its fraud detection capabilities.
TrustCheckr, a company founded in 2017, operates as a software-as-a-service (SaaS) platform. It specializes in helping businesses verify customer information and detect fraud risks based on phone numbers and digital signals. With notable clients like IIFL Finance Limited and Piramal Capital and Housing Finance Limited, TrustCheckr has demonstrated its effectiveness in this crucial domain.
Truecaller’s acquisition of TrustCheckr signifies a strategic step forward in addressing fraud and spam-related issues. This move aligns with Truecaller’s goal of enhancing its enterprise risk intelligence tools, ultimately helping businesses mitigate risk and prevent fraud. Notably, this acquisition will accelerate the rollout of these enhanced tools.
Truecaller’s founder, Nami Zarringhalam, highlights the synergy between the two companies. TrustCheckr’s expertise in identifying fraudsters through external signals will complement Truecaller’s existing internal signals. This combination is expected to create a potent solution for combating fraudulent activities.
Impact on Industries
The acquisition is poised to have a positive impact on various industries, including banking, financial institutions, fintech, and e-commerce. Truecaller’s enhanced risk intelligence tool will enable these sectors to analyze patterns and identify potential fraud risks early in the customer lifecycle, protecting both businesses and consumers.
The Indian Context
As of now, the risk intelligence tool is available exclusively for Indian enterprises. India has grappled with spam issues, including spam calls from international numbers on WhatsApp and a high daily volume of spam calls. Regulatory authorities in India have implemented various measures, including mandating AI spam filters, to address the problem.
Private Companies Taking the Lead
Truecaller’s proactive stance in addressing the spam and fraud issue underscores the importance of private companies in tackling this challenge. Unlike telecom companies, which may have conflicting incentives due to revenue generation from call and message traffic, private companies like Truecaller have a vested interest in effectively curbing spam.
In conclusion, Truecaller’s acquisition of TrustCheckr represents a significant step in the fight against spam and fraud. By enhancing its fraud detection capabilities, Truecaller aims to provide valuable tools for enterprises to safeguard their operations and customers. This strategic move demonstrates the company’s commitment to evolving with the changing landscape of digital threats and staying true to its mission of providing enhanced caller identification and spam protection services.