How Hyderabad Police Busted A Ghost SIM Card Racket

Hyderabad Police dismantle a nationwide 'ghost' SIM card network in Operation Octopus 3.0, arresting 66 individuals linked to cybercrime cases involving over Rs 101 crore.

In a nationwide crackdown on 'ghost' SIM cards network, the Hyderabad Police apprehended 66 people collectively linked to 76 cybercrime cases across the country involving a fraud amount of Rs 101.87 crores.

After Operation Octopus 1.0 (targeting mule account holders) and Operation Octopus 2.0 (targeting bank officials abetting cyber fraud), the Hyderabad City Police - Cyber Crime Police Station (CCPS) launched Operation Octopus 3.0, targeting the 'ghost' SIM network that provides anonymity backbone for organised cyber criminals across the country, an official release said.

What Are Ghost SIMs?

'Ghost SIMs' - mobile connections activated fraudulently in the names of unsuspecting or exploited subscribers - are the primary communication tool used by cyber fraudsters to mask their identity, it said.

Identifying and dismantling this network was the core objective of Operation Octopus 3.0, Hyderabad Police Commissioner V C Sajjanar said.

As part of the operation, 1,194 ghost SIMs linked to cases registered in CCPS were identified and 18 teams were deployed across 13 states over a continuous seven-day operation recently.

"Of this, 544 SIMs were seized in the city by Special Task Force of CCPS. Out the 544 SIMs seized, 432 were sealed SIMs awaiting deployment to cybercrime activities," Sajjanar said.

Arrests Made In Ghost SIM Card Racket

Those apprehended include 44 "ghost" SIM holders, 20 point-of-sales (PoS) agents and two "ghost" SIM suppliers.

On the modus operandi, police said during MNP eKYC verification, certain PoS agents activated additional SIM cards in genuine customers' names without their knowledge, converting them to eSIMs for despatch abroad.

It was also found that PoS agents offered free activation to less-digitally-literate individuals, diverting SIM cards to distributors on commission for use in overseas fraud.

Customers were monetarily induced to surrender SIM cards, which were supplied to fraud networks on commission, police said, adding agents induced customers to share OTPs, enabling creation of fake profiles on WhatsApp, social media, dating, and matrimonial platforms.

Measures To Prevent Ghost SIM Fraud

Police further said bulk SIM camps were run in villages under the guise of free distribution, targeting illiterate individuals to exploit their Aadhaar identities.

With the ghost SIM network now in focus, Hyderabad City Police will convene structured meetings with Telecom Service Providers (TSPs) - Airtel, Jio, and Vodafone Idea - at their senior leadership levels, the Commissioner said.

Just as banks were called upon to find innovative solutions to the mule account problem, TSPs will now be expected to work closely with City Police to come up with stringent protocols to curb the ghost SIM problem within their distribution chains, Sajjanar said.

The Hyderabad police will also approach the Department of Telecommunications (DoT), TRAI and other public stakeholders to ensure plugging on procedural loop holes, KYC strengthening etc., to ensure that access to ghost SIM cards for illegal purposes becomes incrementally difficult for cyber criminals, he said.

"Operation Octopus is ongoing. Further crackdowns on higher-level fraud networks are underway," he said.

'Operation Octopus†1' was executed across 16 states in February this year, resulting in the arrest of 117 accused persons, while under 'Operation Octopus 2.O' launched in April, 32 bank officials, 15 mule account holders and five middlemen were arrested.