RCom Asked To Compensate For Bank Fraud After SIM Swap

Reliance Communications (RCom) has been asked to compensate for an over Rs 12.2-lakh bank fraud after issuing a duplicate SIM card to a third party, which enabled the crime online. The complainant, however, faces fresh challenges as the telecom company is facing insolvency proceedings.

In an order issued last month, S V R Srinivas — principal secretary (IT) in the Maharashtra government and who is the adjudicating officer in cyber fraud cases — held that RCom did not follow reasonable security practices and procedures before issuing a SIM card. This led to a wrongful loss to the complainant and, as a result, the company has been ordered to compensate the victim.

In March 2015, a complaint was filed by Navi Mumbai-based Agri Trade India’s manager Ashok Mange after Rs 19.5 lakh was transferred out of the company account in Tamilnad Mercantile Bank. The sum was sent to seven accounts across the country using online transfers. Mange was authorised to access his company’s account and his mobile was the registered mobile number with the bank. The fraud took place after his mobile connection was switched off.

Subsequent inquiries revealed the money had gone to three beneficiaries with ICICI Bank accounts, and four others with accounts in BoI, Axis Bank, Yes Bank and State Bank of Bikaner & Jaipur. Of the defrauded amount, Rs 7.3 lakh was frozen. However, in some other branches, the money had been withdrawn.

RCom did not have any representative attending the hearing. After hearing the complainant and the banks that were present, the adjudicating officer issued an ex-parte order against RCom, asking the company to compensate Rs 12.2 lakh within one month, failing which a penalty of 12% monthly compounded interest would be imposed.―Times of India