Can eSIM protect SIM swap frauds in India?

There has been a significant rise in SIM swap fraud cases in the past few years. Hackers are targeting people and taking advantage of two two-factor authentication and verification used during the activation of a new SIM card with the same number. The new age technology brings eSIM, which can prevent SIM swap as it cannot be stolen or activated without biometrics or other credentials.

A SIM swap fraud occurs when fraudsters obtain information regarding a customer through fake calls, phishing etc. and use the same to approach the telecom service provider for a new SIM card on the same number.

While prevention of SIM swap fraud is the most ideal situation, in case it does occur, telcos can plead limited liability. Currently, telecom companies appoint grievance officers and customer care representatives to address the customers’ concerns and facilitate reporting of such scams.

If the matter reaches the court, telcos usually pay a fine of up to Rs 50,000 to the authorities who then decide whether and how much of it is given to the victim of the fraud. If the customer further pursues legal action, the telcos defend themselves using safe harbour clauses.

Experts say while the country is getting 5G ready at a fast pace, Telcos will need to ramp up communication warning customers of SIM swap frauds as the roll out of 5G services will require some customers to upgrade their SIM cards, which in turn will increase chances of such frauds.

eSIM is all about, no physical SIM card in an eSIM system, so no scammer can claim that their SIM card got lost or damaged as all the identity details will reside in your phone. Thus, preventing cybercriminals from acquiring another SIM card or re-registering the number in their name.

To activate eSIM you have to register yourself with your details and Personal Identifiable Information. You can also set biometric authentication like face ID or fingerprints to enable multiple layers of security to secure your eSIM account.

The digital SIM also allows for multiple phone numbers and plans to be stored on a single device, making it easier to switch between different carriers or plans.

Experts say, all kinds of phones are vulnerable, including both iPhones and Android devices. Sim-jacker even works on embedded SIM cards (eSIMs). eSIMs are software-driven technology that is prone to hacking. Since, the servers at the network provider or those hosted in the cloud control much of the eSIM data, hacking becomes somewhat inevitable.