Mobile number validation: The Department of Telecommunications is going to take a new initiative to curb cases of rapidly growing cyber fraud and identity theft in the country. Under this, a mobile number validation (MNV) platform has been proposed, with the help of which banks and fintech companies will be able to confirm the real ownership of mobile numbers directly from telecom operators.
These steps are being taken especially to curb those fake or ‘mule accounts’, which are used to withdraw money after cyber criminals. According to sources, this platform can play an important role towards making financial transactions more secure.
This initiative has also received support from the Parliamentary Standing Committee (Home Affairs). The committee has also recommended the identification of the telecom SIM subscriber using AI-powered facial recognition technology, so that the identity- fraud can be banned while issuing the SIM.
Currently there is no mechanism that can ensure that the mobile number linked to the bank account is actually the same account holder. After the new system comes, banks and fintech companies will be able to confirm the mobile number directly from telecom companies. For this, Dot has also proposed amendment in Telecom Cyber Security Rules.
However, this step is also being opposed. Privacy activists say that these rules are excessive interference and this may put the privacy of users in danger. Despite this, the Parliamentary Committee has demanded to implement this system as soon as possible, as well as recommendation to take measures to protect privacy.
Experts believe that this system may cause problems for those innocent users, whose bank account SIM is registered in the name of their parents, siblings or any other person. However, the clarity regarding this situation will be revealed only after the implementation of the system.
