SIM Swap
Overview
SIM swap fraud occurs when criminals trick or bribe telecom providers into transferring a victim’s phone number to a new SIM card under their control. This allows fraudsters to intercept OTPs, calls, and messages, enabling account takeovers and fraudulent transactions.SIM swaps are a major threat in banking and fintech, where OTP-based authentication is common. Regulators advise using stronger methods like app-based authenticators, push notifications, or passkeys. Institutions monitor for SIM change signals and apply step-up verification for high-risk events. Public awareness campaigns are also key to reducing SIM swap risks.
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FAQ
What is SIM swap fraud?
When criminals hijack a phone number to intercept messages and OTPs.
Why is it dangerous?
It enables account takeovers and fraudulent fund transfers.
How is it detected?
With carrier signals, unusual login activity, and step-up checks.
How can it be prevented?
By replacing SMS OTP with stronger authentication like passkeys or app prompts.