Cyber fraud in Delhi is becoming more advanced with each passing year. One of the fastest-growing financial crimes in the city is known as SIM Swap fraud.
Many residents across Delhi and NCR areas have reported losing large sums of money without sharing their OTP, PIN, or banking password with anyone.
This often leaves victims shocked and confused about what went wrong and who should be held responsible.
What Exactly Is SIM Swap Fraud?
SIM Swap fraud is a method used by criminals to take control of a person’s mobile number. Instead of hacking a bank account directly, the fraudster first gets a duplicate SIM card issued in the victim’s name. Once the duplicate SIM is activated, the victim’s original SIM card stops working. From that moment, all OTPs and banking alerts are received by the fraudster. Within minutes, money can be transferred out of the account.
In many cases, the victim notices that their phone suddenly shows “No Network” or “Emergency Calls Only.” Shortly after that, unauthorized bank transactions take place. By the time the victim contacts the bank, the funds may already have been moved to multiple accounts.
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Criminal Law Perspective
From a criminal law perspective, SIM Swap fraud clearly amounts to identity theft and cheating. Sections 66C and 66D of the Information Technology Act, 2000 deal with identity misuse and online impersonation.
In addition, provisions relating to cheating and fraudulent inducement under the Bharatiya Nyaya Sanhita, 2023 may apply where wrongful financial loss is caused. Police authorities also have the power under the Bharatiya Nagarik Suraksha Sanhita, 2023 to freeze bank accounts where stolen funds are traced.
While cheating and impersonation are punishable offences under the Bharatiya Nyaya Sanhita, 2023, the Bharatiya Nagarik Suraksha Sanhita, 2023 gives the police the power to register FIRs, freeze bank accounts, and seize digital evidence in SIM Swap fraud cases.
However, criminal action against unknown offenders does not immediately solve the victim’s financial loss. The more practical question is whether the lost money can be recovered and who is legally responsible for refunding it.
In most cases, banks argue that since the transaction was authenticated through OTP, it must have been authorized by the customer. However, courts and consumer authorities have clarified that OTP authentication alone does not automatically mean the customer was negligent. If the SIM card itself was fraudulently replaced, the customer may not have had any control over the OTP process.
RBI guidelines
The Reserve Bank of India has issued guidelines limiting customer liability in unauthorized electronic transactions. According to these guidelines, if the fraud occurs due to a failure in the bank’s internal systems or security measures, the customer may not be held liable. If the customer reports the fraud promptly after noticing it, liability may also be limited. On the other hand, if a customer voluntarily shares confidential information such as OTP, PIN or passwords, the liability may shift to the customer.
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Role of Telecom Companies
Telecom companies also play a critical role in SIM Swap cases. A duplicate SIM card cannot be issued without going through a verification process. Telecom operators are required to follow Know Your Customer (KYC) norms before activating a replacement SIM. If a duplicate SIM is issued without proper identity verification, it may amount to deficiency in service. In such situations, the victim may consider filing a complaint before the appropriate consumer forum seeking compensation.
Courts have examined similar digital fraud disputes in the past. Consumer commissions have observed that banks must demonstrate that their systems were secure and that there was no lapse in monitoring unusual transactions.
In certain electronic fraud matters, the Delhi High Court has emphasized that financial institutions cannot simply deny responsibility without examining whether adequate safeguards were in place.
At the same time, each case depends on specific facts. If a customer has clicked on suspicious links, shared sensitive information, or ignored warning messages, contributory negligence may be considered.
But in genuine SIM Swap fraud cases, victims often do not share any OTP at all. Their SIM simply stops working due to unauthorized duplication.
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For example, imagine a Delhi resident whose mobile network suddenly stops functioning. Within fifteen minutes, several high-value transactions are processed from his bank account. He immediately calls the national cybercrime helpline and informs his bank. Later, it is discovered that a duplicate SIM was issued using incomplete verification. In such a case, liability may be examined on the basis of whether the bank’s fraud detection system failed and whether the telecom company followed proper procedures.
Important cases
ICICI Bank Ltd. v. Shanti Devi Sharma (NCDRC)
The National Commission held that banks must prove absence of negligence. If internal systems fail, liability may arise.
SBI Cases on Electronic Fraud Liability
Consumer forums have repeatedly ruled that mere OTP usage does not automatically absolve banks if transaction monitoring systems failed.
Observations of the Delhi High Court
In electronic fraud matters, the High Court has emphasized that banks must demonstrate due diligence and security safeguards rather than shifting entire burden to customers.
Summary Table of Liability
| Aspect | Old View | Current Legal View |
|---|---|---|
| Recovery Agents | Bank not liable for agent’s acts. | Bank vicariously liable (Shanti Devi case). |
| OTP Fraud | Customer always responsible. | Bank liable if security systems failed. |
| Proof | Customer must prove bank fault. | Bank must prove they were not negligent. |
Legal Remedies Available
Victims of SIM Swap fraud in Delhi have multiple legal remedies:
- A complaint can be filed with the Cyber Police through the 1930 helpline or the official cybercrime reporting portal.
- Simultaneously, the victim can approach the bank’s grievance redressal system and, if necessary, the Banking Ombudsman.
- A consumer complaint against the bank or telecom operator may also be filed seeking compensation.
- Criminal and civil proceedings can continue independently.
Reporting the Fraud within time
The most important step in SIM Swap fraud cases is immediate action. Reporting the fraud within the first few hours increases the chances of freezing the transferred funds. Victims must call 1930 within the “golden hour,” preserve all SMS alerts, obtain SIM reissue records from the telecom provider, and formally notify the bank in writing. Delayed reporting weakens legal claims.
SIM Swap Fraud is not merely a cyber issue — it is a multi-layered legal dispute involving criminal law, banking regulations, telecom compliance and consumer rights.
SIM Swap fraud highlights the growing intersection of technology and law. Determining responsibility requires examining whether the bank failed in transaction monitoring, whether the telecom provider ignored verification norms, or whether the customer acted negligently. There is no automatic rule; liability depends on evidence and compliance with regulatory guidelines.
As digital banking becomes more common in Delhi, awareness about cyber fraud and legal remedies becomes equally important. Understanding your rights and acting quickly can make a significant difference in protecting your financial interests.
Need Help Understanding Cyber Crime Laws?
If you or someone you know has been affected by SIM Swap fraud, online banking fraud, identity theft, or any other cyber offence, it is important to act quickly. Preserve all transaction details, SIM-related records, screenshots, and complaint acknowledgments.
Understanding your legal remedies under Indian criminal and civil law can help you take informed steps. Individuals seeking clarity on available legal options may connect for guidance regarding complaint procedures, liability issues, and possible recovery mechanisms. Timely legal awareness can make a significant difference.
Any such fraud must be treated as a cybercrime and immediately reported to the Cybercrime Helpline 1930 or www.cybercrime.gov.in.
Disclaimer: The information published in this article is for general informational and educational purposes only. It does not constitute legal advice or create any lawyer-client relationship. Cybercrime matters depend on specific facts, evidence, and applicable legal provisions. Readers are advised to seek independent professional legal advice before taking any action based on the content of this article. The author and publisher disclaim any liability arising from reliance on the information provided herein.
