Authorities revealed that the scam typically begins with fraudsters making calls to potential victims, convincing them to click on a deceptive eSIM activation link. Once the user follows through, the individual’s physical SIM card is disabled and the number is seamlessly transferred to an eSIM-enabled device controlled by the attacker. This maneuver effectively gives the fraudster complete control over the victim’s mobile number, allowing them to intercept bank OTPs and authorize financial transactions without the user’s knowledge. In one case under investigation, close to ₹4 lakh was illegally withdrawn from an account using this method.
The fraud takes advantage of the rising adoption of eSIM technology, which has been promoted as a convenient alternative to physical SIM cards since it allows remote provisioning. However, the same convenience has created a new opportunity for exploitation by cybercriminals. By seizing control of a victim’s number, scammers gain access to digital banking and payment systems with alarming ease.
The alert follows closely after the Department of Telecommunications’ Financial Fraud Risk Indicator system flagged and blacklisted between 300,000 and 400,000 SIM cards suspected of being tied to financial scams. This system, supported by AI-driven tools, identifies around 2,000 high-risk numbers every day, with many linked to fraudulent activities such as fake investment opportunities and bogus job offers.
Authorities have urged citizens to remain cautious when receiving unexpected calls or links related to eSIM activation. They emphasized that if a mobile device suddenly loses connectivity without explanation, users should treat it as a red flag. Immediate reporting to the telecom operator and the bank could prevent financial losses by cutting off the criminal’s access to transactions.
Since its launch in January 2020, the I4C portal has functioned as a central platform for reporting and monitoring cybercrimes across the country. As digital transactions continue to grow and smartphones dominate personal and professional life, India has witnessed a sharp increase in online fraud cases. The latest warning from I4C highlights the need for vigilance as technology evolves, reminding users that convenience must always be balanced with awareness of potential risks.
