DoT cracks down on fake SIMs

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The department of telecommunications (DoT) has issued new guidelines on SIM issuance, in a bid to curb bulk sale of SIM cards through unauthorized sellers. The move comes amidst rising cases of cyber crimes due to fraudulent SIMs. 

According to government data, since May 2023, about 52 lakh mobile connections and 67,000 dealers have been blacklisted. 300 FIRs have also been filed against SIM card dealers in the same period.

As per the new rules, which will be effective October 10, all telecom operators should mandatorily register all PoS or points of sales before September 30, 2023. 

“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. Going ahead, the authorized representative of the entity shall provide the end-user list (includes name, designation, PoI document type, Pol document number, and address, etc.) to the Licensee”, DoT highlighted in its notification. 

Increasing Scrutiny 

From now on, all telecom operators will have to authenticate and register every PoS entity before they become eligible to enroll customers. For this, the concerned PoS will have to furnish documents like CIN (Corporate Identity Number) of the business, Aadhar, residential address and biometrics of the PoS representative. In case the PoS does not have the requisite documents like CIN, LLPIN, incorporation certificate, PAN and GST certificate available immediately, they will be required to sign an affidavit promising that they will provide these documents at the earliest. 

Post this, the operator and PoS will enter an agreement. Each PoS will be allotted a unique ID, which will qualify them to enroll customers. PoS operational in Jammu and Kashmir, Assam and other North East licenses services areas will additionally also need police verification. 

Points violating these norms will have their contracts and PoS IDs terminated within 24 hours of notice. Moreover, sale of SIM cards via unregistered dealers will attract a Rs 10 lakh penalty per PoS, on telecom operators. All mobile connections received via unverified PoS will undergo reverification, as per the circular.