Home Ministry cracks down on PoS agents in digital arrest scams

Digital arrest scams are a growing cybercrime where victims are coerced or threatened into fraudulent activities, causing financial loss and extortion, with investigations revealing links to cybercriminals primarily operating from Cambodia, Laos, and Myanmar

In a major step to combat the increasing threat of cybercrime and the rising phenomenon of digital arrest scams, the Ministry of Home Affairs (MHA) has directed states and Union Territories (UTs) to take immediate and strict action against fraudulent SIM card issuers enabling such criminal activities.

This directive follows the findings by the Indian Cyber Crime Coordination Centre (I4C) and the Department of Telecommunications (DoT), which uncovered an extensive network of SIM cards being used for digital fraud and ransom-like scams originating from Southeast Asian countries, particularly Cambodia.

Digital arrest scams have emerged as a dangerous and sophisticated cybercrime, wherein victims are tricked, coerced, or threatened into complying with fraudulent online activities, often leading to substantial financial loss and extortion. Investigations revealed that these scams are largely associated with cybercriminals operating out of Cambodia, Laos, and Myanmar.

In such scams, perpetrators exploit SIM cards acquired through fraudulent means. These SIM cards, sourced in bulk via Point of Sale (PoS) agents working illegally with Telecom Service Providers (TSPs), are used for various illicit purposes, including digital arrest scams, stock market frauds, and parcel scams. Many of these SIM cards are activated in Cambodia, allowing fraudsters to target Indian citizens remotely and evade detection.

States urged to act on fraudulent SIM card issuers

To curb this growing menace, the Home Ministry has implemented a multi-faceted crackdown on SIM card fraud. The MHA, in collaboration with I4C and DoT, has identified the specific sources of fraudulent SIM cards in states like Uttar Pradesh, leading to a nationwide effort to dismantle these illegal operations. The MHA’s action plan outlines measures to address the root causes of telecom fraud.

States and UTs have been instructed to take swift legal action against PoS agents who illegally issue SIM cards for cybercrime purposes. Concurrently, I4C and DoT are working together to deactivate these fraudulent SIM cards, preventing them from being used in further criminal activities.

Telecom Service Providers (TSPs) that are found negligent in their verification processes could face severe regulatory consequences. The ministry is also strengthening its coordination with international agencies, particularly in regions like Southeast Asia, to combat the global nature of these crimes and track down perpetrators operating from foreign territories.

The MHA has called for regular updates from state authorities on the actions taken against fraudulent PoS agents and TSPs. Cybercrime units across India are being mobilized to dismantle the networks responsible for the procurement and misuse of SIM cards, thus improving cybersecurity in India and reinforcing digital fraud prevention efforts.

This latest crackdown represents a strong commitment by the Indian government to protect citizens from the growing threat of telecom fraud and digital arrest scams. By addressing the issue at its core, the MHA aims to improve security measures, enhance cooperation between national and international authorities, and ultimately create a safer digital environment for Indian citizens.

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