Cybercrime and financial fraud prevention are the focus of recent improvements in the Indian telecom sector. The revisions are concentrated on updating the standards for purchasing bulk SIM cards and registering final places of sale (PoS). The goal is to increase the efficiency of the citizen-focused portal Sanchar Saathi, which was started previously for the same reason.
Sanchar Saathi
- Sanchar Saathi allows users to control mobile connections and stop abuse.
- The IMEI allows users to check their registered connections, prevent stolen or lost phones, report suspicious connections, and confirm the device’s authenticity.
- The system uses the Telecom Analytics for Fraud Management and Consumer Protection (TAFCOP) and Central Equipment Identity Register (CEIR) modules.
- 52 lakh connections were removed after Sanchar Saathi had already examined 114 crore active mobile connections and found 66 lakh questionable ones.
- In addition, 66,000 WhatsApp accounts have been blocked, and 8 lakh fraudulent bank and wallet accounts have been frozen.
- Under the campaign, more than 1,700 dealers have been the targets of more than 300 FIRs.
Point of Sale (PoS) Reforms
- SIM card franchisees, agents, and distributors (PoS) must register with telecom providers under new regulations.
- Operators are responsible for doing thorough PoS verification, including required police verification.
- Sales of SIM cards via PoS and licensees now require written agreements.
- Existing SIM card vendors have one year to abide by the new registration requirements.
- Termination, a 3-year blocklist, and a Rs. 10 lakh fine are the consequences of non-compliance.
Addressing Bulk SIM Card Misuse
- The new strategy substitutes “business connections” for “bulk procurement.”
- Numerous connections can be obtained by businesses, but KYC is required for every end user.
- End-user verification is part of KYC, and the SIM card is only activated upon successful completion of KYC and address verification.
- By scanning the QR code, demographic information must be obtained to prevent misuse of printed Aadhaar.
- For SIM replacement, subscribers must complete a thorough KYC process; at this time, outgoing and incoming SMS services are suspended for 24 hours.
- We introduce several biometric identification methods, such as thumb impression, iris, and facial recognition.
- For 90 days, disconnected mobile numbers cannot be allocated to new users.
Challenges and Considerations
- Examining local enforcement that is effective for smaller establishments is necessary.
- Infrastructure and security measures for processing sensitive data are a concern.
Agent requirements for data collection, processing, and storage must be made clear. - Even with Aadhaar-based KYC, there are still problems with fraud prevention that require attention.
- The collection of data must be used only for the intended purpose.
Conclusion
- The telecom reforms are designed to improve financial security and cybersecurity.
- Effective data collecting must be balanced with privacy protection.
- A strong cybersecurity architecture must always be vigilant and flexible.