What is ‘eSIM’?
■ The full name of ‘eSIM’ is ‘Embedded Subscriber Identity Module’, it is also known as Embedded SIM.
■ Rather than being separate from the mobile phone like a traditional SIM card, it is installed into the phone by the manufacturer.
■ ESIM, unlike traditional SIM, does not take up unnecessary space in the phone, and it can also be used in small devices like smartwatches.
Use of eSIM
■ In such cases of fraud, criminals obtain a large number of mobile numbers and try to log-in to bank accounts through them.
■ If a number is prompted by the bank to send an OTP, they call that number pretending to be a customer service officer and try to get information related to the SIM card upgrade or identification from the concerned person.
■ The criminals then send an e-mail to the victim, which has to be forwarded to the official customer service number.
■ In reality, it is a way of linking their email-id with the victim’s phone number, through which criminals can officially apply to convert the victim’s SIM into ‘e-SIM’.
■ After this process is completed, the criminals get access to all the services (including bank accounts) linked to the victim’s number.
Internet related bank fraud cases in India
■ According to data released by the Reserve Bank of India (RBI), 2,678 cases involving internet and credit or debit card fraud to taling ₹195 crore were reported by Indian banks in the financial year 2019-20.
■ Financial year 2019-20 has seen more than double the growth (in value terms) in internet-related bank fraud cases as compared to the previous year.
■ 530 cases related to internet and credit or debit card fraud were registered between April and June in the financial year 2020-21, a total fraud of ₹27 crore was seen in these cases.
Security efforts
• Efforts are being made by RBI to link various databases and information systems to monitor and detect cases of bank fraud.
■ Efforts are being made by RBI to increase awareness through ‘Electronic Banking Awareness And Training’ or ‘e-BAAT’ programme.
■ Also, awareness campaigns are organized by RBI for safe use of digital payment system, avoiding sharing of important personal information like PIN, OTP, password, etc.
■ All banks and authorized payment system operators have been directed by RBI to launch targeted multilingual campaigns through SMS, print and visual media etc. to educate their users about the safe use of digital payments.
■ Recently some necessary guidelines were issued by Maharashtra Police to avoid this type of bank fraud.
the way forward
■ Procedural deficiencies and lack of promptness on the part of banks and telecom companies is a major reason for the increase in such cases.
■ Customer awareness is considered to be the most effective way to avoid such cases. Therefore, people should avoid clicking on any suspicious link and sharing their personal information with anyone.
■ Along with promoting the use of technology in the banking sector, special attention should be paid to strengthening the security related to it.
■ Necessary efforts should be made by banks in collaboration with local administration to increase public awareness regarding new technologies and the security challenges associated with them.
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