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What is sim swap fraud? How to stay safe from this fraud?

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Cyber crimes are witnessing diverse tactics for fraudulent activities, especially to obtain essential data and online burglary. Recently, a businessman in Kolkata reported a sim swap fraud where he lost more than INR 72 lakhs to two fraudsters named Sanjib Haldar and Rajat Kundu. Although the two have been detained and further investigation is going on in the matter, police and government have already alarmed the general public about the rising sim swap scam.

Sharing personal information, not reporting sudden blocked sims, not blocking pesky calls etc. are some of the common mistakes people are making. In this article, you will gather more information on the recently trending sim swap fraud and how you can be safe. Above all, we will discuss how having cyber insurance for family can prove to be helpful in times of cyber crimes.

What is SIM swap fraud?

What exactly happens in a sim swap scam? How does the sim in my mobile phone give access to another person? These are some of the questions that might pop into your mind. With the advancement in positive technologies, fraudsters are also adopting new methods of looting people. In a sim swap fraud, the fraudster issues a new sim on your mobile number and uses it to make transactions from your bank accounts.

Although sometimes cases of cybercrime become unavoidable and can occur even without any error on your side, having a cyber insurance policy will ensure you financial coverage in times of mishaps. Continue reading to know how it exactly works.

How does SIM fraud work?

In a sim swap fraud, the fraudster prepares an illegal copy of the identity documents of the victim. Using these forged documents, they report a fake case of sim loss under a forged identity. Once the police report is ready, the fraudsters contact the telecom service provider and ask them to renew a new sim on the same number. After issuance of the new sim, the old sim gets automatically blocked. Once they receive a sim of your number, they use it to make financial transactions and leak other essential personal information.

What should we know about SIM Swap Fraud?

Sim swap fraud is not limited to India but is being experienced in various countries across the globe. In recent times, cases are increasing in India. It is always wise to break your sim before discarding and being alert is the only way out. There are various cases, including that of the Kolkata businessman, who didn't report the sudden blocking of their sim.

Mere negligence can lead to heavy losses and further lengthy investigation processes. Being a matter of cybercrime, youngsters and students have also become common targets. This is because forging students' identity documents is easy as such personal information is provided on various platforms. In such times, cyber insurance for students can help them get much-needed assistance in case fraud happens.

How can we protect ourselves from this fraud?

Here are some precautions you must take to stay safe from sim swap fraud:

1. Connect with the network provider

If someday your sim stops working or gets blocked all of a sudden, do not ignore it. Connect with your network provider immediately to know the cause.

2. Two-factor authentication

Enabling two-factor authentication for your bank accounts and sensitive data storage will require you to approve login via email as well. It will protect your account and the fraudulent activities.

3. Check bank statements

Keep an eye on your bank statements. If you find unknown transactions, report the matter immediately.

4. No negligence

The slightest negligence can lead to irreparable losses. So, do not ignore any sign. Go through the transaction messages on the phone and enquire about it. Do not entertain unknown callers and share OTP with unknowns.

5. Cyber insurance policy

A cyber insurance policy ensures financial coverage in case of cybercrime losses and admissible compensation. So, having one will help you cope with the situation.

Some famous incidents/frauds involving SIM swap fraud

There have been reported various cases of sim swap scam. Some of the popular ones are:

1. Recently, in June, a senior citizen became a victim of a sim swap scam and lost above INR 25 lakhs in the scam.

2. A businessman in Posta, West Bengal suffered a loss of above INR 72 lakhs in sim swap fraud. The fraud occurred in 6 transactions and so far, two fraudsters involved have been detained.

3. A Delhi-based businessman lost over INR 50 lakhs in a sim swap case. He received multiple missed calls after which he received one call and ended up losing INR 50 lakhs.

FAQs

1. What is a safe alternative to traditional SIM?

ESim, as introduced by Apple, is one of the safe options you can go for instead of the traditional physical sim. Since it is not physically present, activating and deactivating is easier and is also safer.

2. Does a cyber insurance policy cover sim swap fraud?

Yes. Since the sim swap scam is a cybercrime, it is covered under the cyber insurance policy.

3. What will happen if I suffer a sim swap scam?

Once your sim is swapped, the fraudsters get access to your messages and calls which they use to clear your bank account balance and leak other sensitive personal data.

Conclusion

With the growing use of the internet and digital devices, the threat of cybercrime has also seen a significant rise. A cyber insurance policy is one safety measure that one must take to stay protected. However, above everything, being conscious and alert is a must. If you doubt a sim swap fraud or experience one, immediately report a case and contact your sim provider to block the sim. Stay safe and follow precautionary measures properly.

Disclaimer : The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales

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