The Indian Ministry of Home Affairs (MHA) has issued strict directives to states and Union Territories (UTs) to take action against fraudulent SIM card issuers aiding cybercriminal networks following an investigation by the Indian Cyber Crime Coordination Center (I4C) and the Department of Telecommunications (DoT). The investigation uncovered a large-scale misuse of SIM cards in cyber fraud operations, including digital arrest scams.
Investigations have revealed that cybercriminals obtain SIM cards in bulk through fraudulent point-of-sale (PoS) agents working with Telecom Service Providers (TSPs). These SIM cards are subsequently used for various scams, such as stock market frauds and parcel scams.
A significant number of these SIMs remain active in Cambodia, enabling fraudsters to orchestrate crimes remotely against Indian citizens.
To counter this menace, the government of India has directed states to identify and prosecute agents involved in issuing SIM cards for illicit activities. In addition, the I4C and DoT are working together to block compromised SIMs and prevent their misuse.
The government has also warned that TSPs that fail to enforce stringent verification processes may face regulatory action. The MHA coordinates with global cybercrime units to track perpetrators beyond India’s borders.
The MHA has mandated that state authorities submit reports on actions against fraudulent PoS agents and negligent TSPs. Cybercrime units across India have been mobilised to dismantle networks facilitating SIM-based fraud.
Digital arrest and other scams are on the rise in India. A few weeks ago, a family in Noida fell victim to this scam and lost Rs 1.10 crore. Such cases have been a common occurrence across the country. In some cases, quick intervention by the authorities has saved the victim from being digitally arrested.
Scammers from Nepal are also using digital arrest scams to target the Indian population. In November last year, MHA blocked more than six lakh mobile numbers and 709 apps to counter this threat.
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