Telecom SIM Subscription Fraud: Global Trends, Risk Assessments, and Recommendations

Executive Summary

The rapid expansion of digital connectivity has given rise to Subscriber Identity Module (SIM) subscription fraud, a critical risk for the telecommunications ecosystem. Fraudsters increasingly exploit legitimate customer KYC credentials to obtain SIM cards that are later used for financial scams, identity theft, and cybercrime. The traditional identity validation and existing verification protocols methods remain largely reactive and unable to detect fabricated or misused identities. Telecom Service Providers must therefore balance fraud prevention with regulatory compliance under the Department of Telecommunications, maintaining customer trust and integrity.

This requires a shift in approach. Rather than treating subscription fraud as a transactional compliance requirement, telecom operators and regulators must adopt a proactive, intelligence-led identity assurance framework. The focus must move toward anticipating misuse, enabling real-time authentication, and embedding systemic resilience within SIM registration processes. These are strategic concerns that demand leadership attention and inter-agency collaboration.

Led by Professor Manish Gangwar and Dr. Shruti Mantri, in collaboration with Mr Stephen Raveendra, IPS, and Mr Kalmeshwar Shingenavar, IPS, under a Memorandum of Understanding with the Telangana Police Center of Excellence for Cyber Security, this study assesses vulnerabilities in existing verification systems, benchmarks global SIM registration practices, and proposes a multi-layered, risk-based identity validation model. The report underscores the need to transition from compliance-driven checks to predictive, analytics-enabled identity verification frameworks capable of mitigating subscription fraud at scale.

Policy Recommendations

> Implement Multi-Layered Digital Identity Verification

Adopt integrated validation mechanisms combining knowledge-based checks, phone authentication, address verification, and one-time passwords to strengthen real-time subscriber authentication.

> Strengthen e-KYC, d-KYC and p-KYC Controls

Redesign existing KYC workflows to address identified threat vectors and close procedural vulnerabilities exploited in subscription fraud.

> Introduce Cross-Operator Identity Linkages

Enable a common username or interoperable digital identity framework across telecom service providers to enhance traceability and trust.

> Deploy Risk-Based and Predictive Authentication Models

Incorporate analytics-driven risk scoring and adaptive authentication to detect suspicious registrations before SIM activation.

> Institutionalise Continuous Fraud Risk Audits

Mandate periodic risk assessments of subscriber onboarding systems to proactively identify emerging vulnerabilities and ensure regulatory compliance.