Centre Proposes New Bills for Criminal Law

Introduction

Recently, the Delhi Police arrested a licensed telecom PoS agent, who identified himself as “Shivam Telecom," from a roadside kiosk adjacent to Hindu Rao Hospital. On the face of it, the headline may have simply read, “One man, one arrest." However, beneath that arrest is the unsettling story of a fully legitimate retail shop actively forging other people’s identification documents into weapons, one SIM card at a time, for as little as ₹500-600 each. This is not an account of an isolated offender; it is a peek into the vulnerability of SIM card security for typical end-users and the reasons why every mobile phone subscriber must pay attention to the unseen journey of his number.

 Why SIM Security Matters Now

Erstwhile, a SIM card was only a simple device for sending text messages and making calls. Today, however, it’s also a direct link to most of our lives online, be it online banking to verify it through one-time passwords (OTP) or Unified Payments Interface (UPI); social media platforms; or email accounts to reset a forgotten password, two-factor authentications (2FA), or even numerous other online services. Therefore, losing a SIM card and getting it fraudulently issued under your name, or criminals accessing your identity to buy a SIM, can be a serious cause of concern, as they can then impersonate you, conduct various frauds, bypass checks, or commit acts that can lead to you being wrongly implicated.

According to the investigation, criminals were procuring SIM cards through the authorized outlets of telecom companies, not unlicensed dealers. This clearly proves a deficiency in the Know Your Customer (KYC) process for the SIM card activation. The situation, however, is worse and is also highlighted by the fact that more than 21 lakh mobile numbers from the more than 114 crore mobile numbers reviewed under the Sanchar Saathi initiative launched by the department of telecommunications (DoT) were associated with fake or invalid identity documents. A state police chief of Tamil Nadu claims that 90% of the cyber fraud cases involved SIM cards obtained through misused identity documents.

How Illegally Activated SIMs Fuel Everyday Scams?

Once a SIM is activated using someone else's identity documents or biometric data, without their knowledge, it becomes a disposable, hard-to-trace tool for criminals. Here's how that plays out in practice:

1. Phishing and impersonation calls: Using an honest person’s details for a SIM registration allows the scammer to have a “clean” number that won’t tip off victims about a potential scam immediately when carrying out a fake bank call, fake delivery scam, or fake impersonation of an officer.
2. OTP and account-takeover fraud:  Since the SIM card is used as the anchor to OTP verification, an unauthorized SIM can be used to capture one-time passwords to activate new digital payments, create a new digital payments account, or use other personal information linked to your phone number to reset your service passwords.
3. Financial fraud and money mule networks: According to the investigators, such SIMs were extensively being used to open digital payment accounts as well as to flow money across a number of fraud chains, thus enabling the fraudsters to build a layer of financial infrastructure that is not linked with their actual identities.
4. Identity theft with real-world consequences: The identity of the Aadhaar holder (whose document was used to activate the SIM card) might be unaware that a SIM exists under his name until the fraud is uncovered during a loan default or a criminal investigation where he is forced to justify a crime committed using “his” number that he is oblivious to. 

That is the anonymity that SIM-card fraud has: the fact that the SIM on the face of it seems genuine, but the one operating it and the registered owner have absolutely no relationship whatsoever.

Red Flags Every Mobile User Should Watch For

Most people won't know their identity has been misused until something goes visibly wrong. A few warning signs are worth taking seriously:

1. Your SIM suddenly loses network connectivity or displays "No Service" for an extended period without any known outage, SIM replacement request, or billing issue.
2. You stop receiving OTPs or verification messages for banking, UPI, or other online services, particularly if login attempts continue to occur on your accounts.
3. You receive unexpected OTPs, verification codes, or account alerts for services you never signed up for, indicating that someone may be attempting to use your mobile number.
4. You receive calls or messages intended for someone else or asking you to confirm activities you never performed, which may suggest your number has been misused or duplicated.
5. Your bank or telecom provider notifies you of unusual account activity, failed identity verification, or changes that you did not authorize.
6. You discover multiple mobile connections registered in your name that you never requested, a risk that often remains unnoticed unless you proactively check through the Department of Telecommunications' Sanchar Saathi portal.

None of these guarantee fraud, but any of them is a reason to check further rather than assume it's a glitch.

Practical Steps to Protect Yourself

The good news is that Indian users now have direct tools to check and control this exposure:

1. Identify your SIMs: Via the Department of Telecom’s Sanchar Saathi website, you can access a list of all mobile numbers registered in your name. Report and get any SIMs you do not recognize deactivated promptly.
2. Safeguard your identity documents and biometrics: Do not disclose your Aadhaar information, OTPs, or biometrics to unofficial persons or retail agents. Ensure your SIM is activated in your presence by an official dealer of the telecom company.
3. Tighten the security of your accounts: Wherever possible, use the most secure multi-factor authentication methods; an authenticator app, rather than just SMS, would be ideal. Consider enabling account change or SIM swap notifications from your telecom provider.
4. Stay vigilant about your bank accounts and financial activities. Watch for unusual OTP requests, password change requests, login notifications, and unrecognized devices being logged into your online accounts. Being observant early on helps minimize losses.
5. Take swift action if a SIM stops working: Contact your telecom provider and report the misuse to the Sanchar Saathi website as well as your nearest cyber station, or file a complaint through the cybercrime helpline number.

A Shared Responsibility

Consumer vigilance is not enough to save the system. Telecom providers must verify customer authenticity and check their retail points sufficiently so that a roadside vendor of the likes of “Shivam Telecom” cannot have their retail outlet anywhere the retail outlets may not need to be established and can be run even from an abandoned car body on the street for weeks. Authorities are ensuring this by making all franchisees and PoS agents and distributors register, such that the individual activating each SIM is perfectly identifiable. Consumers should take precautions and report suspicious patterns and be vigilant for fraud detection and protect themselves by knowing the system, like the use of the Sanchar Saathi platform.

Conclusion

The Delhi fake SIM case proves that even sophisticated technologies are not enough to protect India’s telecom ecosystem. No amount of biometric validation, AI fraud prevention tools, or rigid KYC compliance can offset a single corrupt agent selling SIM cards over the counter. While law enforcement works to clamp down, the responsibility also falls upon consumers, who need to regularly monitor their SIM registrations, safeguard their identity, and report any suspicious transactions in time to minimize the threat of identity theft and SIM-based cybercrime.

Sources

• https://www.prokerala.com/news/articles/a1784141.html 
• https://the420.in/dots-sanchar-saathi-initiative-exposes-21-lakh-sim-cards-activated-illegally 
•  https://www.sancharsaathi.gov.in/ 
•  https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113857 
• https://www.business-standard.com/amp/industry/news/nearly-4-million-sims-deactivated-as-govt-cracks-down-on-digital-fraud-125080500300_1.html 
• https://www.digit.in/news/telecom/here-are-5-new-sim-card-rules-implemented-by-dot-amid-rising-scams-and-frauds.html 

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Executive Summary:

In the digital world, people are becoming targets more and more of online scams, which rely on deception. One of the ways the social media is being used for the elections in recent time, is the "BJP - Election Bonus" offer that promises a cash prize of Rs. 5000 or more, through some easy questionnaire. This article provides the details of this swindle and reveals its deceptive tricks as well as gives a set of recommendations on how to protect yourself from such online fraud, especially during the upcoming elections.

False Claim:

The "BJP - Election Bonus" campaign boasts that by taking a few clicks of the mouse, users will get a cash prize. This scheme is nothing but a fake association with the Bharatiya Janata Party (BJP)’s Government and Prime Minister Shri Narendra Modi and therefore, it uses the images and brands of both of them to give the scheme an impression of legitimacy. The imposters are taking advantage of the public's trust for the Government and the widespread desire for remuneration to ensnare the unaware victims, specifically before the upcoming Lok Sabha elections.

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The Deceptive Scheme:

• Tempting Social Media Offer: The fraud begins with an attractive link on the social media platforms. The scammers say that the proposal is related to the Bharatiya Janata Party (BJP) with the caption of “The official party has prepared many gifts for their supporters.” accompanied by an image of  the Prime Minister Shri Narendra Modi.

• Luring with Money: The offer promises to give Rs.5,000 or more. This is aimed at drawing in people specifically during election campaigns; and people’s desire for financial gain.

• Tricking with Questions: When the link is clicked, the person is brought to the page with the simple questions. The purpose of these questions is to make people feel safe and believe that they have been selected for an actual government’s program.

• The Open-the-Box Trap: Finally, the questions are answered and the last instruction is to open-the-box for the prize. However, this is just a tactic for them to make you curious about the reward.

• Fake Reward and Spreading the Scam: Upon opening the box, the recipient will be greeted with the text of Rs. 5000. However, this is not true; it is just a way to make them share the link on WhatsApp, helping the scammers to reach more victims.

The fraudsters use political party names and the Prime Minister's name to increase the plausibility of it, although there is no real connection. They employ the people's desire for monetary help, and also the time of the elections, making them susceptible to their tricks.

Analytical Breakdown:

• The campaign is a cleverly-created scheme to lure people by misusing the trust they have in the Government. By using BJP's branding and the Prime Minister's photo, fraudsters aim to make their misleading offer look credible. Fake reviews and cash reward are the two main components of the scheme that are intended to lure users into getting involved, and the end result of this is the path of deception.
• Through sharing the link over WhatsApp, users become unaware accomplices that are simply assisting the scammers to reach an even bigger audience and hence their popularity, especially with the elections around the corner.
• On top of this, the time of committing this fraud is very disturbing, as the election is just round the corner. Scammers do this in the context of the political turmoil and the spread of unconfirmed rumors and speculation about the upcoming elections in the same way they did earlier. The fraudsters are using this strategy to take advantage of the political affiliations by linking their scam to the Political party and their Leaderships.

• We have also cross-checked and as of now there is no well established and credible source or any official notification that has confirmed such an offer advertised by the Party.

• Domain Analysis: The campaign is hosted on a third party domain, which is different from the official website, thus creating doubts. Whois information reveals that the domain has been registered not long ago. The domain was registered on 29th march 2024, just a few days back.   

• Domain Name: PSURVEY[.]CYOU
• Registry Domain ID: D443702580-CNIC
• Registrar WHOIS Server: whois.hkdns.hk
• Registrar URL: http://www.hkdns.hk
• Updated Date: 2024-03-29T16:18:00.0Z
• Creation Date: 2024-03-29T15:59:17.0Z (Recently Created)
• Registry Expiry Date: 2025-03-29T23:59:59.0Z
• Registrant State/Province: Anhui
• Registrant Country: CN (China)
• Name Server: NORMAN.NS.CLOUDFLARE.COM
• Name Server: PAM.NS.CLOUDFLARE.COM

Note: Cybercriminals used Cloudflare technology to mask the actual IP address of the fraudulent website.

CyberPeace Advisory and Best Practices:

• Be careful and watchful for any offers that seem too good to be true online, particularly during election periods. Exercise caution at a high level when you come across such offers, because they are usually accompanied by dishonest schemes.

• Carefully cross-check the authenticity of every campaign or offer you’re considering before interacting with it. Do not click on suspicious links and do not share private data that can be further used to run the scam.

• If you come across any such suspicious activity or if you feel you have been scammed, report it to the relevant authorities, such as the local police or the cybercrime section. Reporting is one of the most effective instruments to prevent the spread of these misleading schemes and it can support the course of the investigations.

• Educate yourselves and your families on the usual scammers’ tricks, including their election-related strategies. Prompt people to think critically and a good deal of skepticism when they meet online offers and promotions that evoke a possibility to obtain money or rewards easily.

• Ensure that you are always on a high level of alert as you explore the digital field, especially during elections. The authenticity of the information you encounter should always be verified before you act on it or pass it over to someone else.

• In case you have any doubt or worry regarding a certain e-commerce offer or campaign, don’t hesitate to ask for help from reliable sources such as Cybersecurity experts or Government agencies. A consultation with credible sources will assist you in coming up with informed decisions and guarding yourself against being navigated by these schemes.

Conclusion:

The "BJP - Election Bonus" campaign is a real case study of how Internet fraud is becoming more popular day by day, particularly before the elections. Through the awareness of the tactics employed by these scammers and their abuse of the community's trust in the Government and political figures, we can equip ourselves and our communities to avert becoming the victim of such fraudulent schemes. As a team, we can collectively strive for a digital environment free of threats and breaches of security, even in times of high political tension that accompany elections.

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Introduction

According to Statista, the global artificial intelligence software market is forecast to grow by around 126 billion US dollars by 2025. This will include a 270% increase in enterprise adoption over the past four years. The top three verticals in the Al market are BFSI (Banking, Financial Services, and Insurance), Healthcare & Life Sciences, and Retail & e-commerce. These sectors benefit from vast data generation and the critical need for advanced analytics. Al is used for fraud detection, customer service, and risk management in BFSI; diagnostics and personalised treatment plans in healthcare; and retail marketing and inventory management.

The Chairperson of the Competition Commission of India’s Chief, Smt. Ravneet Kaur raised a concern that Artificial Intelligence has the potential to aid cartelisation by automating collusive behaviour through predictive algorithms. She explained that the mere use of algorithms cannot be anti-competitive but in case the algorithms are manipulated, then that is a valid concern about competition in markets.

This blog focuses on how policymakers can balance fostering innovation and ensuring fair competition in an AI-driven economy. 

What is the Risk Created by AI-driven Collusion?

AI uses predictive algorithms, and therefore, they could lead to aiding cartelisation by automating collusive behaviour. AI-driven collusion could be through:

• The use of predictive analytics to coordinate pricing strategies among competitors.
• The lack of human oversight in algorithm-induced decision-making leads to tacit collusion (competitors coordinate their actions without explicitly communicating or agreeing to do so).

AI has been raising antitrust concerns and the most recent example is the partnership between Microsoft and OpenAI, which has raised concerns among other national competition authorities regarding potential competition law issues. While it is expected that the partnership will potentially accelerate innovation, it also raises concerns about potential anticompetitive effects such as market foreclosure or the creation of barriers to entry for competitors and, therefore, has been under consideration in the German and UK courts. The problem here is in detecting and proving whether collusion is taking place. 

The Role of Policy and Regulation

The uncertainties induced by AI regarding its effects on competition create the need for algorithmic transparency and accountability in mitigating the risks of AI-driven collusion. It leads to the need to build and create regulatory frameworks that mandate the disclosure of algorithmic methodologies and establish a set of clear guidelines for the development of AI and its deployment. These frameworks or guidelines should encourage an environment of collaboration between competition watchdogs and AI experts. 

The global best practices and emerging trends in AI regulation already include respect for human rights, sustainability, transparency and strong risk management. The EU AI Act could serve as a model for other jurisdictions, as it outlines measures to ensure accountability and mitigate risks. The key goal is to tailor AI regulations to address perceived risks while incorporating core values such as privacy, non-discrimination, transparency, and security.

Promoting Innovation Without Stifling Competition

Policymakers need to ensure that they balance regulatory measures with innovation scope and that the two priorities do not hinder each other. 

1. Create adaptive and forward-thinking regulatory approaches to keep pace with technological advancements that take place at the pace of development and allow for quick adjustments in response to new AI capabilities and market behaviours.n
2. Competition watchdogs need to recruit domain experts to assess competition amid rapid changes in the technology landscape. Create a multi-stakeholder approach that involves regulators, industry leaders, technologists and academia who can create inclusive and ethical AI policies. 
3. Businesses can be provided incentives such as recognition through certifications, grants or benefits in acknowledgement of adopting ethical AI practices. 
4. Launch studies such as the CCI’s market study to study the impact of AI on competition. This can lead to the creation of a driving force for sustainable growth with technological advancements. 

Conclusion: AI and the Future of Competition

We must promote a multi-stakeholder approach that enhances regulatory oversight, and incentivising ethical AI practices. This is needed to strike a delicate balance that safeguards competition and drives sustainable growth. As AI continues to redefine industries, embracing collaborative, inclusive, and forward-thinking policies will be critical to building an equitable and innovative digital future. 

The lawmakers and policymakers engaged in the drafting of the frameworks need to ensure that they are adaptive to change and foster innovation. It is necessary to note that fair competition and innovation are not mutually exclusive goals, they are complementary to each other. Therefore, a regulatory framework that promotes transparency, accountability, and fairness in AI deployment must be established.

References

• https://www.thehindu.com/sci-tech/technology/ai-has-potential-to-aid-cartelisation-fair-competition-integral-for-sustainable-growth-cci-chief/article69041922.ece 
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html 
• https://www.ey.com/en_in/insights/ai/how-to-navigate-global-trends-in-artificial-intelligence-regulation#:~:text=Six%20regulatory%20trends%20in%20Artificial%20Intelligence&text=These%20include%20respect%20for%20human,based%20approach%20to%20AI%20regulation. ‍
• https://www.business-standard.com/industry/news/ai-has-potential-to-aid-fair-competition-for-sustainable-growth-cci-chief-124122900221_1.html