DoT announces new norms to curb SIM fraud

The Department of Telecommunications (DoT) has announced new norms for the verification requirements for customers seeking mobile phone numbers and for point of sale (PoS) entities appointed by telecom operators. The move aims to curb SIM fraud and phishing activities that misuse mobile connections. The new rules will come into effect from October 10, 2023.

DoT, in a recent notification on its official website, said, “It has come to the notice that sometimes mobile connections, obtained by fraudsters in connivance with Point of Sale (PoS), are being misused to commit cybercrime/frauds.” To restrain this, DoT has decided to regulate the provisioning of services by the licensees through PoS entities, including franchisees, agents, and distributors.

The telecom operators will need to verify and register each PoS entity before they can enroll customers. Further, the PoS entity will be required to submit documents, such as Aadhaar or passport of the PoS representative, corporate identity number or business license, work address, and residential address of the person representing the PoS.

Moreover, the telecom operator and the PoS will have to sign a written agreement with provisions related to the enrollment of customers, area of operations, and penal actions for the violation. According to a report by ET, PoS entities in Jammu and Kashmir, Assam, and Noth East licensed service areas (LSAs) will also require police verification before signing the agreement.

Each PoS entity will be given a unique identification ID to ensure only valid PoS IDs are enrolling customers. PoS entities that violate the rules set by DoT will be terminated from the contracts, and their PoS IDs will be blocked and terminated by the telecom operation in 24 hours. If any entity enrolls customers via unregistered PoS after September 30, 2023, have to pay Rs. 10 lakhs fine per instance per PoS, and the mobile numbers that are enrolled through the unregistered PoS will require reverification.

DoT has also discontinued bulk connections of mobile numbers and replaced them with business connections. The allotment of business connections will now require documentation with a corporate identification number, limited liability partnership identification number, or business license, goods and services tax (GST) registration certification, and the address of the business.

Additionally, DoT has also tightened the rules for sim-swap and replacement. The telecom providers will have to follow the e-KYC or D-KYC process, and the mobile number will be activated only when the demographic details provided by the customer match the existing details. The SMS service on the replacement SIM will be enabled after 24 hours of activation.

These new norms set by DoT are expected to protect customers from SIM fraud and phishing.