What is SIM Swap Fraud?

October 30, 2023

In recent incidents, unsuspecting individuals fell victim to SIM swap fraud, resulting in substantial financial losses. In one instance, a private school teacher lost Rs 1.5 lakh through eight transactions in just under three hours after fraudsters gained access to his two bank accounts. Similarly, a South Delhi-based businessman lost over Rs 50 lakhs to unknown scamsters after receiving multiple missed calls.

Understanding SIM Swap Scams

SIM swap scams exploit the connection between physical SIM cards and banking applications, leveraging phone numbers to generate OTPs and receive essential bank-related messages.
Fraudsters begin by gathering personal details, such as phone numbers and bank account information, often through phishing or vishing (voice phishing) techniques.
Phishing involves sending malware links via email or messages, which, when opened, steal the victim’s personal information.
Once armed with this information, the scammers visit a mobile operator’s retail outlet, impersonating the victim with a forged ID proof and falsely reporting the theft of the victim’s SIM card and/or mobile phone.
This enables them to obtain a duplicate SIM, even if the original SIM is still functional. All activation messages and details are diverted to the scamster’s SIM, not the victim’s.

The Role of Missed Calls

Unlike other scams that involve direct communication with victims, SIM swap scams do not require such interaction. However, fraudsters do give missed calls to their targets, intending to make the victims leave their phones unattended and disregard the loss of network connectivity.

Stealing Money from Bank Accounts

After acquiring the victim’s personal information and banking details through phishing, the fraudsters access bank portals and generate OTPs to withdraw money. With control over the victim’s SIM card, all OTPs are redirected to the scammers, enabling them to authenticate transactions and pilfer funds.

Finding Victims

Accused parties in these scams either purchase data from hackers involved in data breaches or buy data from online portals. In many data breaches, private companies, housing extensive customer data, fall victim to hacking. Such breaches expose a wealth of personal information that can be exploited by fraudsters.

Arrests and Challenges

As of now, no one has been apprehended in connection with these scams, according to the Delhi Police. The culprits evade arrest by promptly disposing of duplicate SIMs and operating from various locations. The stolen funds are also funneled through diverse channels, often converted into cryptocurrency, which remains untraceable due to encryption.

Protecting Yourself from SIM Swap Fraud

To safeguard against SIM swap fraud, consider the following precautions:

Stay Alert: Be vigilant against vishing and phishing attacks.
Don’t Ignore Missed Calls: After receiving multiple missed calls, don’t turn off your phone or neglect messages. Contact your mobile operator immediately if you notice unusual activity.
Change Passwords: Regularly update your bank account passwords.
Enable Alerts: Register for SMS and email alerts for your banking transactions.
Immediate Action: In case of fraud, contact your bank promptly to block your account and prevent further unauthorized transactions.

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