SIM Card Fraud: The Government's New Plan to Stop It

In a bid to combat digital fraud associated with SIM cards, Union Minister Ashwini Vaishnaw announced that the government has taken significant steps, including the disconnection of 52 lakh mobile connections. As part of a comprehensive strategy to counter digital fraud, the Indian government has enforced stringent verification protocols for SIM card dealers and ceased the issuance of bulk SIM card connections, stated Union Minister Ashwini Vaishnaw.

The minister had previously unveiled these new measures, highlighting the imperative of police verification for SIM card dealers. He later clarified that the responsibility of verifying SIM card dealers lies with “the licensee” or the respective telecom operators. Violators of these regulations will face a penalty of ₹10 lakh.

To tackle the extensive issue of SIM card- digital fraud, the government has taken a stringent stance, leading to the disconnection of a staggering 52 lakh mobile connections. Approximately 67,000 dealers have been placed on a blacklist, and since May 2023, there have been 300 First Information Reports (FIRs) filed against dealers involved in SIM card- matters.

Around 66,000 accounts engaged in fraudulent activities were detected and blocked by WhatsApp on its own accord. Union Minister Vaishnaw emphasised the crucial role of indisputable SIM dealer verification in curbing fraud. He underlined the imposition of a ₹10 lakh penalty for dealers who breach these norms. This verification process will be administered by telecom operators, who will meticulously collect detailed information about each business owner and their business- documents before appointing a dealer. This practice contrasts with earlier regulations that did not require such comprehensive documentation.

With approximately 10 lakh SIM card dealers in the network, they will be granted ample time to undergo the verification process. Union Minister also revealed that the Department of Telecommunications has abolished the provision of issuing bulk connections. Instead, a novel concept of business connections will be introduced. Moreover, in addition to verifying businesses, the KYC (Know Your Customer) process will extend to individuals receiving SIM cards.

These new rules are slated to be enforced from October 1, allowing dealers a grace period of about six months to comply with the requirements.