Next-Gen Cyber Shield: DoT Introduces Mobile Number Verification to Guard Against Fraud for UPI and E-Wallet Users

Identity-linked mobile verification is required by new telecom cybersecurity regulations, and sales of used smartphones will be subject to stricter scrutiny.

New Delhi, India:  The Department of Telecommunications (DoT) has announced significant changes under the Telecom Cyber Security (TCS) Rules, 2024, strengthening India’s defense against digital theft. The Mobile Number Validation (MNV) system, which will compel banks, UPI payment apps, e-commerce companies, and financial institutions to confirm that a user truly owns the mobile number they supply, is at the center of these reforms.

The action comes with a sharp increase in phishing, unlawful UPI onboarding, SIM-based identity fraud, and digital wallet schemes that target people nationwide.

Why has Mobile Number Validation become a necessity?

Up until now, anyone could create an account using the mobile number of another person; this vulnerability was frequently used in:

• A stolen SIM card was used to establish fake UPI IDs.
• Banking fraud via impersonation and WhatsApp.
• E-commerce accounts created with a different person’s phone number.
• OTP-based digital service access without real identity verification.

Cybercriminals frequently utilize this vulnerability as a weapon to perpetrate financial fraud, disappearing before the victim even realizes their number is being misused.

Senior telecom authorities claim that:

“In India, the mobile number is becoming the main digital identification.  To guarantee that only the legitimate user has control over financial access, ownership verification is essential.”

What MNV changes for users and platforms?

Digital services will be assisted by the new method in verifying:

• The same person making the service claim owns the number.
• That number is not being used by any unauthorized devices or individuals.
• Avoid having several dubious accounts linked to a single mobile identification.

Key expected benefits:

• Faster and more robust KYC compliance
• Significant decline in net-banking, wallet, and UPI fraud
• Enhanced security and confidence in internet transactions

DoT maintains that strict data-governance procedures and E2E encryption will be adhered to, notwithstanding privacy groups’ fears around data sharing and tracking.

Resale smartphone market under scanner

The profitable second-hand smartphone industry in India, which is frequently used to transfer stolen and banned phones, is the subject of another significant overhaul.

Under the new rules:

• Before reselling, device dealers must verify the IMEI status.
• Devices that are flagged will be immediately identified.
• Customers may confirm that the phones they are buying are sourced legally.

Authorities anticipate that this will disrupt organized phone theft, especially in major cities.

• A new organization was established to coordinate efforts against cybercrime.
• The Telecom Identifier User Entity (TIUE), a central authority for identification validation, was also established by DoT.

In the context of TIUE:

• Authorized agencies will receive mobile-ID verification data from banks and digital marketplaces.
• The speed and accuracy of cybercrime investigations will increase.
• Fraud chains are easier for law enforcement to follow.

Officials emphasize that legal approvals will govern data access, which will be strictly case-specific.  Fraudsters are losing ground, according to experts.  According to cybersecurity experts,

• Mobile number misuse accounts for two-thirds of digital fraud instances in India.
• Onboarding fraud is made possible at scale by KYC infractions.
• The weakest link is still OTP-based authentication.

A counselor in the banking industry said:

“Validation of mobile numbers increases the barrier to entry for criminals.  This restriction eliminates the anonymity that fraudsters thrive on.”

What consumers should expect

Users may soon encounter the following as MNV rolls out in phases:

1. Ownership of the number is automatically verified at registration.
2. Prompts for verification when connecting mobile devices to banking applications.
3. Extra documentation when there is a discrepancy.

To put it simply, your mobile and digital identities must coincide.

A major milestone in digital safety

India has the fastest-growing digital payments ecosystem in the world, but public confidence is being threatened by an increase in scams.  The government hopes to accomplish the following with MNV and device-scrubbing mandates:

• Bolster the country’s cybersecurity.
• Cut down on identity-based, fintech, and SIM fraud.
• Make sure millions of users have safer online experiences.

As the economy grows more and more mobile-first, officials believe this endeavor is intended to future-proof digital transactions.

Always Remember! Your Safety Lies in Your Hands!!!

About The Author:

Yogesh Naager is a content marketer who specializes in the cybersecurity and B2B space.  Besides writing for the News4Hackers blogs, he also writes for brands including Craw Security, Bytecode Security, and NASSCOM.

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