NXaaS in Action: Security for Government

Securing Citizen Services and Preventing Benefits Fraud

In 2024, unemployment insurance fraud alone cost U.S. states an estimated $191 billion. Identity thieves filed false claims using stolen Social Security numbers. Organized crime rings created fake identities to siphon benefits. International fraud operations exploited weaknesses in multi-state systems.

The authentication systems meant to prevent this fraud weren’t failing because they lacked sophistication. They failed because they were blind to the signals that matter most: whether the person claiming benefits was genuinely who they said they were, using their actual device, from their claimed location.

A case manager in a Midwest state office described the frustration: “We’d see applications that passed every automated check—correct SSN, correct date of birth, correct address. The person would pass SMS verification because they’d already taken over the phone number. By the time we discovered the fraud through manual review weeks later, thousands of dollars had been paid out to criminals.”

This is the security challenge facing government agencies at every level. They must provide accessible services to millions of citizens while defending against increasingly sophisticated fraud operations—with limited budgets, legacy systems, and diverse user populations.

CAMARA APIs, delivered through NXaaS, offer the solution government agencies desperately need: network-level security intelligence that stops fraud before benefits are paid, protects citizen data without creating barriers to access, and works within the constraints of government technology environments.

The Unique Security Imperatives for Government

Government agencies face security challenges that combine the worst aspects of multiple industries. They must serve everyone—citizens of all ages, technical abilities, languages, and circumstances. Security solutions must work for a tech-savvy 25-year-old applying for a business permit and an elderly citizen checking Social Security benefits, without creating digital divide barriers.

When government security fails, the impacts cascade: taxpayer money lost to fraud, citizen identities compromised, public trust eroded, political accountability demanded, and legitimate beneficiaries denied services they desperately need.

Government agencies operate with constrained budgets, procurement processes that favor lowest cost, and IT staff often managing decades-old legacy systems alongside modern platforms. Every security measure must comply with federal and state privacy laws, accessibility requirements, civil rights protections, and public transparency obligations.

Government benefits programs face organized crime, international fraud rings, and sophisticated identity theft operations that exploit any weakness at scale.

What Traditional Government Authentication Can’t See

When a citizen applies for benefits, accesses services, or logs into a government portal, traditional authentication systems verify Social Security numbers, dates of birth, addresses, security questions, and SMS codes. But these systems remain blind to whether the applicant’s phone number was hijacked days ago, if the SIM card is the same one the citizen has been using, whether the device itself was recently swapped, if the applicant is genuinely located where they claim, or whether this is part of a coordinated fraud operation.

These gaps are precisely what fraud operations exploit. They steal identities, take over phone numbers through SIM swaps, and systematically file false claims across multiple states—all while passing traditional authentication checks.

CAMARA APIs: Network-Level Defense for Citizen Services

CAMARA is a global open-source initiative that standardizes access to telecom network capabilities. For government agencies, this means the ability to verify identity and prevent fraud using the same security infrastructure that mobile carriers use to protect billions of users worldwide.

Through NXaaS, government agencies access these capabilities without managing complex carrier relationships, navigating procurement challenges with multiple telecom vendors, or building specialized expertise.

Key CAMARA APIs for Government

SIM Swap Detection identifies when a phone number has been transferred to a different SIM card—the primary technique used in benefits fraud and account takeover attacks. When someone applies for unemployment insurance or attempts to change direct deposit information, the system queries: “Has the SIM card for this phone number been swapped in the past 14 days?” If yes, the application is flagged for manual review instead of automatic approval, preventing billions in fraudulent payments.

Number Verification confirms that the phone number provided matches the device being used—without requiring citizens to enter codes. For legitimate citizens using their own devices, authentication is instant and frictionless. For fraudsters using stolen credentials on their own devices, verification fails silently, triggering enhanced security protocols.

Location Verification provides network-level confirmation of a citizen’s location. Many government benefits and services have location-based eligibility requirements. The system can confirm whether an unemployment applicant is genuinely in-state, preventing interstate fraud rings from filing claims in multiple states simultaneously while protecting citizen privacy.

Device Swap Detection identifies when multiple phone numbers associated with different benefit applications are all connected to recently-swapped devices—a strong signal of organized fraud operations. Combined with other CAMARA signals, this enables agencies to identify and stop fraud rings before payments are issued.

Real-World Use Case: State Unemployment Insurance Agency

A state unemployment agency faced overwhelming fraud during the pandemic and its aftermath, with fraudsters costing the state over $300 million before enhanced detection systems were implemented.

The Challenge: Processing 50,000+ weekly unemployment claims (up from 5,000 pre-pandemic), fraud detection staff overwhelmed by volume, traditional identity verification too slow for citizens needing urgent assistance, SMS-based authentication easily defeated by SIM swap attacks, and interstate fraud operations filing claims in multiple states.

The NXaaS/CAMARA Solution:

Integrated CAMARA APIs to create automatic fraud detection that operates in real-time. Initial applications trigger Number Verification, SIM Swap checks, Location Verification, and Device Swap detection. Applications receive automatic risk scores, with low-risk approved for payment with standard processing, medium-risk receiving automated identity verification, and high-risk requiring mandatory manual review. Approved claims are monitored for suspicious changes, with attempts to change direct deposit information triggering SIM Swap checks.

Results After 12 Months:

Federal Agency: Securing Classified Systems

A federal government agency with 15,000 employees managing classified information shifted to hybrid work. Traditional VPN + password authentication wasn’t sufficient for zero-trust security requirements.

The Implementation:

Multi-layered verification tied to classification levels. Unclassified/Sensitive requires Number Verification plus password and PIV card. Secret classification adds Location Verification, SIM Swap checks (blocking access if SIM changed in last 7 days), and Device Swap checks. Top Secret/SCI includes all Secret-level checks plus continuous session monitoring with automatic session termination if device location changes or network anomalies are detected.

Results:

• Achieved zero-trust architecture compliance across all classification levels

• Detected and prevented five attempted unauthorized access events from compromised devices

• Zero successful breaches of classified information

• Reduced authentication friction at lower levels while dramatically strengthening security at higher levels

Municipal Government: Unified Security Across Services

A large city government serving 1.2 million residents through multiple departments needed unified security across 12 different departments with 28 separate citizen-facing systems.

The Challenge: Inconsistent authentication standards across departments, citizens frustrated by different login requirements for different services, frequent account takeovers, and limited IT budget for department-by-department security upgrades.

The Solution: Implemented unified authentication layer with single sign-on, Number Verification, SIM Swap detection, and risk-based access. Low-risk activities get automatic authentication, medium-risk activities trigger SIM Swap checks, and high-risk activities require Location Verification plus enhanced authentication.

Results:

• 68% reduction in successful account takeover attempts

• $4.7 million saved in fraud prevention

• Citizen satisfaction scores improved 23%

• Implementation completed in 9 months vs. projected 3+ years for department-by-department approach

The Business Case for Government

For a mid-sized state agency managing $2 billion in annual benefits:

Traditional Approach (Annual): $110-195 million

• Fraudulent payments: $80-150 million

• Investigation, remediation, compliance

• Federal penalties for inadequate fraud controls

With NXaaS/CAMARA: $31.5-49.82 million annually

• API transaction costs: $420,000

• Integration: $120,000 ongoing

• Dramatically reduced fraud and investigation costs

Net annual savings: $60-145 million

ROI: 9,100% to 22,100%

These numbers don’t include improved public trust, reduced political pressure, faster service delivery for legitimate applicants, or better allocation of staff resources.

Why Government Can’t Manage Multi-Carrier Integration

Government agencies might consider integrating CAMARA APIs directly with carriers, but this approach faces insurmountable challenges. Each carrier relationship requires separate RFP, contracting, and approval processes—multi-year timelines while fraud happens now. Different carriers implement CAMARA differently, requiring government IT staff to become experts in each carrier’s API. Federal agencies serve all 50 states with different dominant carriers. Budget cycles don’t align with rapid deployment needs. Each carrier integration creates new security surfaces requiring separate compliance documentation.

NXaaS solves all of this: single procurement process and contract, one integration point for all carriers, unified security and compliance posture, predictable costs, and rapid deployment compatible with government urgency.

Implementation Timeline

Government agencies typically follow a four-phase approach: Assessment and Authorization (4-8 weeks), Pilot Program (8-12 weeks), Controlled Expansion (12-16 weeks), and Enterprise Deployment (ongoing). Because NXaaS is built for enterprise deployment, government agencies can implement with confidence that citizen services won’t be disrupted and security requirements will be met.

Protecting Citizens Without Creating Barriers

Government security must protect against sophisticated fraud while remaining accessible to all citizens, including vulnerable populations. CAMARA APIs through NXaaS achieve this balance.

For legitimate citizens, authentication happens invisibly in the background with no additional steps or frustrating delays. Faster service delivery because fraud reviews don’t slow processing. Better experience because resources focus on service, not fraud investigation.

For fraudsters, network-level signals are impossible to fake or manipulate. SIM swap and device swap attacks are detected immediately. Coordinated operations are identified before payments are issued. Organized crime rings are disrupted systematically.

This is the security paradigm that government services require: protection without exclusion, security without friction, trust without burden.

Conclusion

As government services move increasingly online, the fraud threat grows exponentially. Organized crime, international operations, and sophisticated identity theft rings target government benefits programs because they represent massive financial opportunities with historically weak defenses.

Traditional authentication approaches—Social Security numbers, knowledge-based questions, SMS codes—are no longer sufficient. The mobile network has always been one of the world’s most sophisticated identity verification infrastructures. With CAMARA and NXaaS, that power is finally accessible to government agencies at federal, state, and local levels.

Billions in prevented fraud. Better service for citizens. Stronger program integrity. Achieved in months, not years.