As 5G arrives, so do risks of SIM frauds

Telcos will need to ramp up communication warning customers of SIM swap frauds as the rollout of 5G services will require some customers to upgrade SIM cards, which in turn will increase the chances of such frauds, experts say.

A SIM swap fraud occurs when fraudsters obtain information regarding a customer through fake calls, phishing etc. and use the same to approach the telecom service provider for a new SIM card on the same number.

Once the SIM card is issued, the old SIM in possession of the customer is deactivated, and all new communication to the number is received by the fraudster. This allows the scammer access to information like banking one-time passwords (OTPs), which allows them to steal money from the victim's account.

This may also happen in the case of stolen phones, or when unsuspecting customers click on unknown links, which allow the fraudster to duplicate the SIM remotely, and gain access to OTPs.

The Department of Telecommunications (DoT) in 2016 and 2018 issued detailed procedures and steps for seeking explicit consent of the customers for the issuance of new SIM cards in cases of upgradation. Reports suggest that the department is working on further guidelines to streamline and secure the process.

"Telecom companies can further undertake awareness drives to discourage customers from divulging personal and financial information to unverified sources and inform them of the recourse available in case of SIM swap scams," said Rishi Anand, partner at DSK Legal.

Currently, all telcos periodically send out messages informing customers to be wary of requests for personal and financial details from unknown numbers/companies. They also outline the platforms where customers can reach out with SIM swap/upgradation requests.

Bharti Airtel, Vodafone Idea and Reliance Jio did not respond to queries on the matter sent by ET till press time.