Explained: The Centre's new plan to crack down on cyber fraud

Cybercrime is on the rise, and the government recognises how crucial it is to keep it under check. In a bid to tackle digital frauds, the government has made verification of dealers selling SIM cards mandatory and discontinued the provision of issuing bulk connections. A new concept of business connections has been introduced, which requires Know Your Customer (KYC) compliance for both businesses and individuals handling SIM cards. Union Minister Ashwini Vaishnaw announced a host of new changes on Thursday, saying the government is working on a long-term plan to combat the selling of fake SIM cards. Earlier, while announcing the new measures, the minister had said that the government has made police verification of SIM card dealers mandatory. In the most recent crackdown on such connections, Vaishnaw stated that the government had cancelled up to 52 lakh mobile connections. Since May 2023, 300 FIRs have been filed against SIM card dealers and 67,000 dealers have been blacklisted. Let’s take a closer look at the unfolding developments. Mandatory verification of SIM dealers According to the new rules, all new SIM card vendors will be required to go through police and biometric verification, and all point-of-sale dealers would be required to register. The verification of SIM card dealers will be carried out by “the licencee” or the respective telecom operator and a penalty of Rs 10 lakh will be imposed on violators. [caption id=“attachment_13010202” align=“alignnone” width=“640”] The verification of SIM card dealers will be carried out by “the licencee” or the respective telecom operator and a penalty of Rs 10 lakh will be imposed on violators. Pixabay[/caption] Vaishnaw informed that the Department of Telecommunications (DoT) has also discontinued the provision of bulk connections and instead a new concept of business connection will be introduced. “Besides, KYC of businesses, KYC of person taking handover of SIM will also be done,” He added. Besides, in a move to prevent misuse of printed Aadhaar, the government has mandated capturing of demographic details by scanning QR code of printed Aadhaar, the minister said. The Union minister, however, clarified that Aadhaar is not mandatory for getting SIM. “Indisputable verification of SIM dealers will be mandatory to curb frauds. Penalty of Rs 10 lakh will be imposed on dealers found violating norms,” Vaishnaw said. The verification will be done by telecom operators who will collect the details of each business owner and his business-related documents for verification before appointing a dealer. Earlier, detailed documentation of dealer was not prescribed in the rule. The government will allocate ample time for verification Vaishnaw said that there are 10 lakh SIM card dealers and they will be given sufficient time for verification. Meanwhile, the Department of Telecommunications (DoT) in a statement shared that in addition to thumb impression and iris-based authentication in Aadhaar e-KYC process, facial based biometric authentication is also permitted. “In case of disconnection of a mobile number, it will not be allocated to any other new customer till expiry of 90 days. A subscriber has to undertake complete KYC for replacement of his SIM and there will be bar of 24 hours on outgoing and incoming SMS facilities,” the statement said. [caption id=“attachment_13010242” align=“alignnone” width=“640”] Ashwini Vaishnaw said that there are 10 lakh SIM card dealers and they will be given sufficient time for verification. File image/PTI[/caption] The verification of point of sales (PoS) will be done by telecom operators. The move is expected to eliminate the rogue PoS who by fraudulent practices issue SIMs to anti-social and anti-national elements. The process mandates written agreement between the PoS and the licencees. If a PoS indulges in any illegal activities, it will be terminated and blacklisted for a period of three years, as per details shared by the DoT. All the existing PoS will be registered as per this process by licencees within 12 month. Crackdown on SIM card-related digital fraud In a widespread crackdown against SIM card related digital frauds, the minister said that the government has disconnected 52 lakh mobile connections. While 67,000 dealers have been blacklisted, 300 FIRs have been registered against SIM card dealers since May 2023. Further, the minister said WhatsApp on its own blocked around 66,000 accounts that were involved in fraudulent activities. Besides, “About eight lakh bank wallet accounts used by fraudsters have been frozen. Out of 7.5 lakhs complaints about stolen or lost mobile handsets, three lakh mobile handsets have been traced and returned to their owners”, Vaishnaw said. According to official data, about 17,000 mobile handsets have been blocked and out of about 18 lakh subscribers’ complaints of having fraudulently registered mobile connections in their names, 9.26 lakh complaints have been resolved. With inputs from PTI