Hyderabad: A recent study by the Telangana Cyber Security Bureau, Indian School of Business (ISB), Institute of Data Science, and Centre of Excellence for Cyber Security reveals that SIM card fraud is a common issue in cybercrimes. This type of fraud makes up 35-40% of all telecom frauds worldwide, costing the sector Rs 3,600 billion annually.
The report, titled ‘Telecom SIM Subscription Frauds: Global Policy Trends, Risk Assessments, and Recommendations,’ was presented by ISB Prof. Manish Gangawar, Dr. Shruti Mantri from IIDS, and Telangana police officers.
During the study, over 1,600 Customer Acquisition Forms (CAFs) were collected from various police stations. These forms included phone numbers of criminals reported by the public across Hyderabad and the State. The data from these forms was analyzed using Artificial Intelligence (AI) models. The study also reviewed SIM registration procedures in 160 countries to find international best practices to improve local protocols.
The study found that fraudsters often use fake or outdated Aadhaar cards with pictures of children to obtain false SIM cards for illegal activities. They also procure fake SIM cards using fake Aadhaar cards.
To combat SIM subscription fraud, the study recommends a multi-layered, risk-based approach. This includes incorporating online identification and verification methods, improving electronic identification processes, and increasing consumer education.
The goal of the study is to reduce the risks of fraudulent activities using legitimate customer KYC details. It found that 64.5% of Indian consumers prefer digital KYC for SIM registration, mainly using Aadhaar ID. However, 89% of the alternate numbers were not linked to Aadhaar, indicating flaws in the validation process. The study also highlights weaknesses in OTP-based authentication and identifies illegal practices by Point-Of-Sale (POS) agents.
Cyber Security Bureau director Shikha Goel, while releasing the report, said that the study has highlighted major issues related to SIM card fraud. She emphasized that personal information should not be shared with anyone and that lost or stolen SIM cards should be reported immediately.
Goel urged everyone to be vigilant, protect personal information, deal only with certified agents, and report suspicious activity immediately. She mentioned that the recommendations of the study would be brought to the attention of relevant national authorities due to the urgent need to address the issue.
