Nearly 4 million SIMs deactivated as govt cracks down on digital fraud

DoT uses AI-based system to detect scam-linked numbers; thousands flagged for verification, hundreds of agents blacklisted

The government has blacklisted nearly 4 million SIM cards as part of a nationwide crackdown on mobile and financial fraud, powered by AI-based detection tools, according to a report by The Economic Times.

 

The Department of Telecommunications (DoT), in partnership with telecom service providers and financial institutions, has significantly stepped up efforts to detect and disable fraudulent SIMs using advanced digital tools.

 

At the core of the operation is the Financial Risk Indicator (FRI), an AI-powered system capable of identifying high-risk numbers based on behavioural patterns, such as unusual calling or transaction activity. Since its rollout in May, FRI has been flagging around 2,000 numbers daily.

 

So far:

• 4 million SIM cards have been deactivated
• 6.8 million mobile numbers flagged for re-verification
• 52,000 PoS agents blacklisted for enabling fake registrations

This large-scale effort follows alerts generated by the FRI tool, in tandem with the DoT's ASTR (AI and facial recognition-driven portal under the Sanchar Saathi initiative).

What triggered the move

According to the report, officials uncovered widespread misuse of identity documents—often using fake or cloned Aadhaar cards—to obtain multiple mobile connections under the same identity. These SIMs were then used for SIM-swap frauds, phishing attacks, OTP thefts, and impersonation scams. 

 

The AI system proved instrumental in identifying such misuse patterns, particularly instances where more than nine SIMs were issued under a single identity. These irregularities triggered further investigation and subsequent action.

How the system works

Once the ASTR platform detects suspicious activity—such as multiple SIMs issued against the same ID or signs of misuse—it flags the affected numbers and alerts the respective telecom operators. These operators are then responsible for initiating a verification process, which often requires users to undergo re-KYC (Know Your Customer) checks.

 

If the re-KYC process fails or the documents provided are found to be forged or unrelated to the subscriber, the SIM is disconnected. In several cases, telecom agents involved in facilitating these fraudulent issuances have also been blacklisted and barred from issuing further connections.

 

This verification and disconnection pipeline has become faster and more precise with the integration of AI and facial recognition technologies, allowing authorities to take near real-time action against suspicious mobile connections.

 

“The ASTR system flags suspicious numbers, which are then verified by telecom operators. If found invalid or unverified, they are promptly disconnected,” a senior DoT official told The Economic Times. 

 

Operators are mandated to complete re-KYC verification and disable flagged numbers. Authorities have confirmed that both state-wise breakdowns and operator-specific data are being closely monitored to ensure compliance.

How this affects mobile users and digital security

For telecom users, the crackdown emphasises the importance of maintaining proper KYC compliance and vigilance against misuse of personal documents. It serves as a wake-up call for individuals to monitor how their identity is used, particularly in mobile registrations.

 

India has witnessed a sharp rise in cybercrime incidents linked to mobile numbers. Fraudsters increasingly exploit SIMs to bypass security layers in digital transactions, access OTPs, and impersonate users across UPI apps and banking platforms. These scams have led to substantial financial losses and widespread data breaches.

 

The blacklisting initiative also comes amid growing concern over mobile-enabled scams involving social engineering tactics, such as fake job offers, investment schemes, and technical support frauds. These frauds typically rely on untraceable or fraudulently registered SIM cards.

Sanchar Saathi and ASTR’s role

The ASTR system and Sanchar Saathi portal were launched in 2023 to address identity misuse in telecom services. Earlier initiatives focused on pilot projects and public awareness campaigns. The current drive marks a shift towards real-time fraud detection and coordinated response across stakeholders, including banks, UPI platforms, and law enforcement agencies.