Government Announces Reforms to Curb SIM Card Fraud, Requiring Verification for Bulk Purchases by Dealers – News18
The government has taken a major step towards curbing cyber fraud by discontinuing bulk purchases of SIM cards and mandating verification for each and every SIM card dealer. Union Minister for Communications, Electronics and IT, Ashwini Vaishnaw, announced these reforms during a press conference. He emphasized that these reforms focus on user protection and reducing cyber fraud cases.
Since May, the government has already detected and deactivated 52 lakh fraudulently obtained connections. This success is owed to the implementation of the ‘Sanchar Saathi’ portal, which has helped identify and neutralize fraudulent connections. To crack down on these activities, 67,000 dealers involved in facilitating illicit connections have been blacklisted, and around 300 FIRs have been lodged against those involved in cyber fraud.
The upcoming directives will require verification and biometric authentication for new dealers of mobile SIM cards. The Ministry of Communications has stated that this reform aims to ensure proper registration of franchises, agents, and distributors by licensees.
In addition, the practice of bulk purchasing SIM cards has been completely terminated to prevent fraudulent activities. Instead, a stringent business connection provision will be introduced, allowing legitimate businesses to acquire connections through thorough verification and registration processes.
Entities can take any number of mobile connections, but all end-users must undergo complete KYC (Know Your Customer) verification. The SIM will only be activated after successful KYC and physical verification of the entity’s premises or address.
The Ministry has also stated that demographic details from printed Aadhaar cards will be captured by scanning the QR code, as a precaution against the misuse of printed Aadhaar cards. If a mobile number is disconnected, it cannot be allocated to a new customer for 90 days. The replacement of a SIM card will require the subscriber to complete the KYC process, and there will be a 24-hour bar on outgoing and incoming SMS facilities.
To ensure the effectiveness of these measures, any violation by dealers will result in a fine of Rs 10 lakh. The government is fully committed to upholding the integrity of telecommunication networks and protecting people from cybercrimes.
The government’s efforts have already yielded significant results. Illicitly obtained handsets, amounting to 17,000, have been rendered inoperable, and 66,000 WhatsApp accounts linked to cyber fraud have been blocked. Cooperation from WhatsApp itself has been instrumental in resolving these issues.
Additionally, around 8,00,000 payment account wallets associated with illicit transactions have been blocked, dealing a significant blow to the financial support of criminal activities.
Once implemented nationwide, the Ministry of Communications expects to see changes in the current cyber fraud scenario within 7 to 8 months.
Perspective: The government’s decision to reform the SIM card system is a critical step towards fighting cyber fraud in India. By discontinuing bulk purchases and enforcing verification for every SIM card dealer, the authorities aim to prevent the fraudulent acquisition of connections. The use of biometric authentication and KYC processes ensures that only legitimate businesses and individuals can acquire SIM cards, enhancing user protection. These reforms, coupled with the government’s efforts in blocking illicit handsets, WhatsApp accounts, and payment wallets, demonstrate a commitment to combating cybercrimes and safeguarding the integrity of telecommunication networks.
