The risk of SIM swap fraud is influenced by the time it takes to associate a new SIM with an existing phone number. A fraudster wants SIMs that are swapped quickly so they can exploit them before victims notice and respond to the loss of service. There is no delay between losing a SIM and replacing it that both minimizes the risk of crime and satisfies the demands of consumers that lose their handsets. This is why most national regulators say nothing when consumer activists complain about SIM swaps being used to hijack phone accounts. The Telecom Regulatory Authority of India (TRAI) is an exception. From July 1, Indians will need to wait 7 days to port their mobile phone number after a replacement SIM has been issued because of a new rule which TRAI has imposed to reduce SIM swap fraud. But as TRAI observed when passing the rule, some wanted an even longer delay to further reduce the risk of fraud.
(1) The number of days for which a mobile number should not be made eligible for porting after SIM swap/ replacement
10. On this aspect, while a few stakeholders opined that a wait period of 10-days after SIM swap/ replacement is appropriate, some other stakeholders contended that a wait period of 10-days may inconvenience subscribers, especially in urgent porting situations, and therefore, a shorter wait period such as two-to-four days would be reasonable. The Authority has taken note of the stakeholders’ comments and is of the view that to prevent fraudulent porting after SIM swap/ replacement, the wait period should neither be too small that it falls short of the objective of curbing fraudulent porting, nor it should be too long to inconvenience the subscribers. Accordingly, the Authority has decided to keep a waiting period of seven days after the SIM swap or replacement for a mobile number to become eligible for porting.
The Indian consultation on this topic is worth keeping in mind when reviewing the coverage of SIM swap fraud in other countries. TRAI’s evaluation is a rare example of a regulator acknowledging the trade-off that has to occur because customers can have conflicting demands depending on how a problem is framed. When asked if they want increased security, customers want increased security. When asked if they want increased convenience, customers want increased convenience. TRAI has imposed a regulation that will cause an unusual degree of inconvenience for Indians compared to phone users in other countries. They are doing it to protect them. Whether TRAI has struck the right balance can be debated, but at least they were open about discussing the need for balance.
Update 15:30 UTC, June 28, 2024: The article has been amended to clarify the minimum wait of 7 days relates to number porting following a SIM swap.
