Voda Idea asked to pay Rs 8.5L in SIM swap fraud

MUMBAI: Vodafone Idea has been ordered to compensate a bank fraud victim Rs 8.5 lakh for not following “reasonable security” practices in issuing a duplicate SIM card, which led to the duping. The order was issued by the Maharastra government’s adjudicating officer (information technology).
The complaint filed was in June 2015 by a Nashik company, Daffodils Furnishing, against Idea Cellular, RBL Bank and ICICI Bank. The principal secretary in the state government plays the role of adjudicating officer.
The case is yet another instance where a bank’s dependence on the registered mobile number for authentication has resulted in a fraud. While the company has argued that issuance of a duplicate SIM is a telecom dispute, the adjudicating authority has held it liable, stating that “a SIM card is an absolute key to a customer’s sensitive and personal information” and that the number can be used to access bank details.