Hyderabad: How cybercriminals use Aadhar cards with outdated pictures of children to obtain SIM cards for illicit activities

Hyderabad: A study by the Indian School of Business (ISB)-Institute of Data Science; Telangana Cyber Security Bureau (TGCSB); and Center of Excellence for Cyber Security of Telangana State, Hyderabad, has revealed that cybercriminals are using Aadhar cards with outdated pictures of children to fraudulently obtain SIM cards for illicit activities.

Titled `Telecom SIM Subscription Frauds: Global Policy Trends, Risk Assessments, and Recommendations’, identity theft via SIM card is a major component of cybercrimes that can only be prevented by a strong identity verification system.

Aadhar is the preferred identity document among 64.5 percent of Indian consumers who choose digital KYC for SIM registration.

Interestingly, 89 percent of the alternate numbers submitted do not connect to Aadhar, pointing to a serious weakness in the verification procedures. The study also discovered anomalous practices by Point of Sale (POS) agents and emphasized the weaknesses of One Time Password (OTP)-based authentication and real-time subscriber authentication.

It was observed that the alternate numbers were frequently connected to other criminals and used for authenticating purposes. To prevent fraud, the report suggests improving electronic identification procedures, boosting customer education, and implementing online identification and validation techniques, according to TGSCB Director Shikha Goel.

The study also revealed that the telecom industry loses an astounding Rs 3,60,000 crore annually as a result of SIM card subscription fraud. Subscriber information from Customer Acquisition Forms (CAFs) from every telecom service provider was used in the study.

Using AI algorithms, real-time data extraction was done on 1,600 CAF phone numbers and those were found to be belonging to criminals in Telangana, she said.

"To benchmark global best practices, an extensive analysis of SIM registration policies in 160 countries was conducted, providing valuable insights for improving local protocols," Shikha Goel said. She also said that the study underscores the critical problem of SIM card fraud and stresses the significance of keeping personal information private and reporting lost or stolen SIM cards as soon as possible.

"We urge everyone to remain vigilant, protect your personal information, deal only with verified agents, and report suspicious activities immediately. Given the importance of this issue and the urgency with which it needs to be resolved, the TGCSB will disseminate the study's recommendations to relevant national stakeholders,” the TGCSB director said.