RCom asked to compensate for bank fraud after SIM swap

MUMBAI: Reliance Communications (RCom) has been asked to compensate for an over Rs 12.2-lakh bank fraud after issuing a duplicate SIM card to a third party, which enabled the crime online. The complainant, however, faces fresh challenges as the telecom company is facing insolvency proceedings.
In an order issued last month, S V R Srinivas — principal secretary (IT) in the Maharashtra government and who is the adjudicating officer in cyber fraud cases — held that RCom did not follow reasonable security practices and procedures before issuing a SIM card. This led to a wrongful loss to the complainant and, as a result, the company has been ordered to compensate the victim.
In March 2015, a complaint was filed by Navi Mumbai-based Agri Trade India’s manager Ashok Mange after Rs 19.5 lakh was transferred out of the company account in Tamilnad Mercantile Bank.