According to recent reports, the Department of Telecom (DoT) has introduced fresh regulations governing the sale of SIM cards in response to the escalating incidents of telecom-related fraud. These cases have included deceptive phone calls and messages, further exacerbated by the disconcerting revelation that thousands of SIM cards have been issued under the name and identity of a single individual.

In response to the surge in fraudulent activities, the government has launched a sweeping crackdown. As per statements by Telecom Minister Ashwini Vaishnaw, the government has taken significant measures to address the issue. This includes the blocking of 66,000 fraudulent WhatsApp accounts, blacklisting 67,000 SIM card dealers, registering 300 First Information Reports (FIRs) against fraudsters, and deactivating a staggering 52 lakh phone connections. Additionally, around 8 lakh bank wallet accounts utilized by fraudsters have been frozen.

To combat the fraudulent sale of SIM cards, the DoT has unveiled new regulations set to be enforced from October 1. Under these guidelines, telecom operators are mandated to register all their 'Point of Sale' (PoS) outlets before the deadline of September 30. Furthermore, the DoT has issued a stern warning of a penalty amounting to Rs 10 lakh for telecom operators found selling SIM cards through unregistered dealers.

These proactive measures represent a concerted effort by the government and the DoT to curb fraudulent activities in the telecom sector, safeguarding the interests and security of the public.

"If the licensee(s) permit any new PoS that is, after September 30, 2023, to enroll customers without registration, then a financial penalty of Rs 10 lakh per PoS per instance shall be imposed by concerned LSA (licensed service area) on each licensee, the circular said.

The circular requires re-verification of mobile connections activated through unregistered Point of Sale (PoS) outlets. All existing PoS vendors must register by the end of September. Registration demands documents like CIN, LLPIN, Aadhaar, PAN, and GST certificates.

If PoS outlets lack these documents, they must submit an affidavit once available. Forged documents lead to subscriber re-verification, and fraudulent PoS IDs will be blocked, necessitating customer re-verification.

"In addition to this, the same PoS shall also be terminated by all licensees across all LSAs (licensed service areas) and action as per law of the land shall be initiated by the licensee against such PoS," the circular said.

The circular provides clarification that if a Licensee designates a Point of Sale (PoS) solely for recharge and billing tasks without customer enrollment, there is no obligation to register such PoS under these directives.

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