New telecom cybersecurity rules mandate identity-linked mobile verification; second-hand smartphone sales to face tighter checks.
New Delhi: Strengthening India’s defence against digital fraud, the Department of Telecommunications (DoT) has notified sweeping reforms under the Telecom Cyber Security (TCS) Rules, 2024. At the heart of these changes lies the Mobile Number Validation (MNV) system — a mechanism that will force banks, UPI payment apps, e-commerce players, and financial institutions to verify if a user actually owns the mobile number they provide.
The move comes amid an explosive rise in SIM-based identity fraud, illegal UPI onboarding, phishing and digital wallet scams targeting consumers across the country.
Why Mobile Number Validation became a necessity
Until now, anyone could sign up for accounts using someone else’s mobile number — a loophole widely exploited in:
- Fake UPI IDs created with a stolen SIM
- WhatsApp and banking fraud through impersonation
- E-commerce accounts opened using another person’s number
- OTP-based access to digital services without true identity checks
Cybercriminals routinely weaponise this gap to commit payment fraud and vanish before the victim even realises their number is being misused.
According to senior telecom officials:
“The mobile number has become the primary digital identity in India. Verifying ownership is critical to ensure only the rightful user controls financial access.”
What MNV changes for users and platforms
The new system will help digital services verify:
- The number belongs to the same individual claiming service
- No unauthorised devices or persons are using that number
- Prevent multiple suspicious accounts tied to one mobile identity
Key expected benefits:
- Stronger and faster KYC compliance
- Sharp reduction in UPI, wallet and net-banking fraud
- Improved trust and security in online payments
Privacy advocates have raised concerns about data sharing and tracking, but DoT insists E2E encryption and tight data-governance protocols will be followed.
Resale smartphone market under scanner
Another major reform targets India’s lucrative second-hand smartphone marketplace, often used to move stolen and blacklisted handsets.
Under the new rules:
- Device sellers must validate IMEI status before resale
- Flagged devices will be detected instantly
- Buyers can ensure they are purchasing legitimately sourced phones
Authorities expect this to disrupt organised handset theft, particularly in large metro markets.
- New body launched for cybercrime coordination
- DoT has also created the Telecom Identifier User Entity (TIUE) — a central identity-validation authority.
Under the TIUE framework:
- Banks and digital platforms will share mobile-ID verification data with authorised agencies
- Cybercrime investigations will become faster and more accurate
- Law enforcement can track fraud chains more effectively
Officials stress that data access will be strictly case-specific and governed by legal permissions. Experts say fraudsters are losing ground. Cyber-security analysts estimate:
- Two-thirds of India’s digital fraud cases involve mobile number misuse
- KYC violations enable onboarding fraud at scale
- OTP-based authentication remains the weakest link
A banking sector advisor remarked:
“Mobile number validation raises the entry barrier for criminals. Fraudsters thrive on anonymity — this rule cuts that off.”
What consumers should expect
As MNV rolls out in phases, users may soon face:
1- Auto-verification of number ownership during registration
2- Verification prompts while linking mobile to banking apps
3- Additional documentation in cases of mismatch
Simply put — your digital identity must match your mobile identity.
A major milestone in digital safety
India hosts the world’s fastest-growing digital payments ecosystem — but rising scams threaten public trust. Through MNV and device-scrubbing mandates, the government aims to:
- Strengthen national cyber resilience
- Reduce SIM, fintech and identity-based fraud
- Ensure safer online experiences for millions of users
Officials say this initiative is designed to future-proof digital transactions as the economy becomes increasingly mobile-first.
Secure identity. Secure payments. Secure digital India.
