In a worrying new scam that has recently surfaced in India, a South Mumbai doctor lost nearly ₹11 lakh after falling victim to an “e-SIM upgrade” fraud. This scam highlights serious vulnerabilities in the way OTPs (One-Time Passwords) and SIM-based security measures are commonly used to protect personal and financial accounts. As the use of e-SIM technology grows, so do the risks posed by these sophisticated cybercrimes that can drain bank accounts in minutes, often without users realizing until it’s too late.

How the Scam Works

An e-SIM (embedded SIM) is a digital alternative to a physical SIM card, built into phones and other devices, allowing users to switch networks without changing cards. Fraudsters impersonate telecom staff and contact unsuspecting victims, offering to upgrade their physical SIM to an e-SIM, often listing benefits like convenience and better service. Victims are then persuaded to share OTPs sent to their phone, believing it is part of the legitimate upgrade process.

Once the fraudsters obtain the OTP, they deactivate the victim’s original SIM and activate a duplicate e-SIM on their own device. This effectively hijacks the victim’s phone number, rerouting calls, messages, and most dangerously, OTPs needed for banking transactions and account verification. With control over the phone number, criminals can reset email and bank passwords, siphoning off money swiftly.

The Mumbai doctor’s ordeal began with such a call in September. Within days of sharing the OTP, over ₹10.5 lakh was debited from his bank accounts through multiple transactions. The case is under investigation, with the police arresting a suspect who allegedly rented out his bank account to launder the stolen money.

Impact and Recent Cases

This is not an isolated incident. Another victim in Noida lost ₹15.5 lakh in a SIM swap scam involving e-SIM activation, and numerous reports indicate losses ranging from lakhs to crores across India. The Ministry of Home Affairs’ Indian Cybercrime Coordination Centre (I4C) has issued alerts warning users to be cautious about unsolicited calls and e-SIM activation links.

Why OTP Protection May Fail

OTPs have long been a pillar of digital security for payments and password resets, but this scam shows their limitations. Fraudsters don’t need to breach passwords or physical security; they simply hijack the phone number through SIM swap or e-SIM activation, intercepting OTPs meant for the legitimate user. This loophole exposes a critical weakness in relying solely on OTPs sent via SMS for security.

How to Protect Yourself

Experts urge users to follow these precautions:

• Never share OTPs with anyone, even if they claim to be from your telecom provider or bank.

• Avoid clicking on suspicious links or downloading unknown files sent via messages or calls.

• Always verify e-SIM upgrade or activation requests independently through your telecom operator’s official app or customer service.

• Be skeptical of unexpected calls requesting urgent actions or sensitive information.

• Immediately contact your telecom operator and bank if your phone loses network connectivity suddenly.

The scam’s rapid rise underscores the need for stronger security measures and increased public awareness. While digital convenience grows, so do threats—users must stay alert and informed to protect their money and identities.

In conclusion, the ₹11 lakh lost after an e-SIM update is a stark reminder of the evolving landscape of cybercrime. OTPs and SIM-based protections, while useful, are not foolproof. Understanding these risks and adopting cautious habits are crucial steps toward safety in the digital age. Stay vigilant, verify independently, and never share confidential codes to keep your accounts safe in a world increasingly moving toward digital SIM technology.

With inputs from agencies

Image Source: Multiple agencies

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