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Government Suspends 70 Lakh Mobile Numbers Linked to Payment Frauds

Govt. suspends 70 lakh mobile numbers
According to the Reserve Bank of India’s annual report for 2022-23, there has been a significant increase in digital payment fraud cases. The report highlights that in the fiscal year 2022-23, 6,659 digital frauds (card/internet) were reported, amounting to Rs 276 crore. To combat this issue, the government has taken some actions.
According to Financial Services Secretary, 70 lakh mobile numbers have been suspended due to suspicious transactions. This step has been taken as part of efforts to tackle the increasing cybersecurity threats and improve the safety of digital payments in the country.
The Financial Services Secretary chaired a recent meeting focused on discussing issues around financial cybersecurity and finding ways to control the growing instances of digital payment frauds. Several key entities like the Departments of Economic Affairs, Revenue, and Telecom, along with TRAI, MeitY, and NPCI were part of this high-level meeting indicating the seriousness of the issue.
Key Details
Suspension of Mobile Numbers
As stated by Financial Services Secretary, the government has suspended 70 lakh mobile numbers that were involved in suspicious transactions. This mass suspension aims to crack down on the rising digital and cyber frauds in the country. The financial authorities have also instructed banks to improve their systems and processes to prevent such frauds in digital payments.
Ongoing Efforts
The government is planning more meetings focused on cybersecurity in the future, with the next one scheduled for January 2024. The authorities plan to discuss critical issues like securing the Aadhaar Enabled Payment System (AEPS) through better data protection by states, and standardizing the Know Your Customer (KYC) norms for merchants. The Financial Services Secretary also highlighted the need for enhanced coordination between different agencies and regulators including the RBI and finance ministries to have an integrated approach against rising cyber fraud.
Types of Frauds
Some types of digital frauds that the government aims to tackle include:
- Unauthorized transactions using cloned fingerprints to illegally withdraw money via AEPS.
- Phishing calls or texts seeking personal information like Aadhaar data or bank details to steal identities or money.
- Scams related to Aadhaar card printing services where gullible customers are duped.
- Biometric data theft by criminals to misuse the stolen information illegally.
Major Entities Involved
Aadhaar Enabled Payment System (AEPS)
The Aadhaar Enabled Payment System (AEPS) allows bank customers to use their Aadhaar identity and biometrics to carry out basic banking transactions like cash withdrawals, balance checks, and remittances. AEPS leverages the Aadhaar infrastructure to enable secure financial transactions by using biometric authentication. It was developed by the National Payments Corporation of India (NPCI) as a bank-led model for easy, interoperable online transactions through micro-ATMs and Business Correspondents. However, AEPS also faces fraud risks like unauthorized transactions using cloned fingerprints.
Telecom Regulatory Authority of India (TRAI)
The Telecom Regulatory Authority of India (TRAI) is a regulatory body set up to govern various aspects of the telecommunications sector including tariffs, quality of service, spectrum allocation, and internet services. TRAI aims to nurture the growth of telecom in India while also safeguarding consumer interests through initiatives around complaints redressal, awareness building, and more. As digital fraud often involves misuse of mobile/SIM details, coordination between TRAI and agencies combating cyber crime is vital.
National Payments Corporation of India (NPCI)
NPCI is an umbrella organization for national retail payment systems, owned by a consortium of major Indian banks. Backed by RBI and Finance Ministry, NPCI powers payment systems like AEPS, UPI, RuPay cards that are at the center of India’s digital payments growth story. With cybersecurity threats rising for electronic payments, NPCI has been actively working to strengthen its platforms and promote safe digital transaction behavior among consumers. Its focus aligns strongly with the nationwide priority of tackling digital frauds.
Protecting Citizens
With advanced frauds like unauthorized transactions using cloned fingerprints, experts highlight the importance for people to verify the authenticity of any agency that asks for their biometrics like iris scans or fingerprints for linkage purposes. The UIDAI also offers facilities like locking/unlocking biometrics as per need to prevent misuse or theft by illegal entities. Using a virtual ID (VID) in place of Aadhaar number for services that require linkage is also advised to enhance privacy.
Final Thoughts
While the government is undertaking measures like suspending numbers and strengthening coordination to contain digital payment frauds, public awareness and caution play a pivotal role as well towards this mission. People need to refrain from sharing personal data or credentials until they have verified the validity of any calls, texts or e-KYC attempts made towards them.
In case of encountering fake e-KYC apps, suspicious transactions or experiencing fraud attempts, citizens must immediately report these to authorities like the cyber crime portal along with informing their bank. Building this security-first mindset among digital payment users is essential for the larger ecosystem to prevail against cyber threats in the long run.