India
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Karnataka High Court holds BSNL liable
NDTV··10 Jun
The Karnataka High Court ordered BSNL to pay more than Rs 55 lakh to Sri Basaveshwara Pattana Sahakara Bank after a duplicate SIM was issued without proper verification. Cybercriminals used the SIM swap to intercept OTPs and steal Rs 87.7 lakh through unauthorised transfers in 2019.
Prism
What It Means For You
- Your mobile number is often a gateway to banking OTPs, so SIM security is part of financial security.
- If a telecom company issues a duplicate SIM carelessly, victims may have legal grounds to seek compensation.
- Banks and customers should treat sudden network loss on registered numbers as a possible fraud warning.
What's Happening
- The Karnataka High Court enhanced compensation against BSNL in a SIM-swap fraud case.
- The court found negligence in issuing a duplicate SIM without proper subscriber verification.
- BSNL must pay the unrecovered loss, damages and interest after the bank lost money in online transfers.
SIM Swap Risk
- SIM-swap fraud lets criminals receive OTPs meant for the real subscriber.
- Telecom verification failures can defeat otherwise secure banking authentication systems.
- The ruling may push stricter duplicate-SIM checks across service providers.
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