Airtel — negligence in kyc verification

Address:

781025

Digital Environment:

The digital world as we know it is transforming, and telecom companies are at the forefront of this change. The growth of smartphones has increased our ability to connect and deliver content anywhere on the planet. This phenomenon is making it easier for people to rely on their cell phones for much more than just making phone calls. Telecommunication companies are experiencing large-scale changes to their industry and the world as we know it. Millions of people worldwide now have access to a globally connected network—aka the internet. This has created digital inclusion around the world. New opportunities are changing the way consumers and companies interact online. In the midst of this change, telecom companies are working diligently to handle changing customer expectations. Customers now expect more innovative services that are convenient and easy to use. Telecom companies are decreasing their margins, increasing competition and actively looking for ways to stay relevant and profitable. In the digital age, the world is becoming more and more global. Personal, consumer and business transactions are occurring across countries and across the planet daily. These interactions are happening in real time and with less and less face-to-face contact.



Fraud in the Changing Digital Environment:

But Telecom Companies in India are not taking all these vital risks associated with verification of KYC Documents seriously. I would say they just don’t care. Because I had applied for some Mobile Connections with my Electoral Voter Identity Card is GZH2184589. Got the connections activated and using it currently. But later I found that my Electoral Voter card number was wrongly issued to me with No. GZH2184589 instead of my actual Electoral Voter Card No. GZH0027788. The wrong Electoral Card No GZH2184589 actual belongs to UJJAL BAL. It’s a strange that Telecom Companies till date DID NOT found out the ERROR/MISMATCH in my submitted Electoral Voter Card. So it’s clear that they DO NOT CROSS VERIFY any document with issuing authority which can put the country’s SECURITY AND INTEGRITY at SERIOUS RISKS. THIS IS A SERIOUS LOOPHOLE IN THE SYSTEMS.



As technology advances, global information continues to flow at an increasing rate. This is creating new risk for data privacy, fraud protection and security. Criminals often use fabricated identities to secure telecom services. This type of telecom fraud involves identity theft or the use of fabricated identities during onboarding. This enables criminals to use telecom services such TV, internet services, mobile banking, virtual wallets, and other high-value services for more fraudulent applications. Regulators are becoming increasingly interested in the telecom industry to help fight against nefarious use of mobile devices for terrorist attacks or other criminal activities.



Leave my case now and assume someone with criminal or with terrorist mindset gets any connections by submitting fabricated identities to secure telecom services. AS USUAL THE TELECOM COMPANIES WILL NOT CROSS VERIFY THE SUBMITTED KYC DOCUMENTS WITH THE ISSUING AUTHORITY AND GUESS WHAT IT COULD BE A DISASTER FOR THE NATION.



1. WHY TRAI HAVE NOT IMPLEMENTED MANDATORY KYC VERIFICATIONS?

2. IF IMPLEMENTED WHY THE SAME IS NOT BEING STRICTLY FOLLOWED BY ALL TELECOM COMPANIES?

3. THERE SHOULD NOT BE ONLY SAMPLE VERIFICATIONS ONLY. THE CHECKING SHOULD NOT ONLY BE DONE ON ANY PERIODICALLY ONLY. TELECOM COMPANIES SHOULD AUTHENTICATE ALL THE KYC DOCUMENTS FOR ALL NEW CUSTOMER AND EXISTING CUSTOMER’S WITH ALL THE ISSUING AUTHORITIES AND THEN ONLY SHOULD BE ALLOWED TO ENJOY UNINTERUPTED SERVICES WITH TELECOM COMPANIES. EACH AND EVERY CUSTOMERS DETAILS SHOULD BE THOROUGHLY CHECKED AND CROSS VERIFIED. NO COMPROMISE SHOULD BE ON THIS. THERE SHOULD NOT BE ANY LAPS.

4. AN ONLINE DATABASE SHOULD BE AVAILABLE TO CROSS VERIFY ALL THE SUBMITTED KYC DOCUMENTS.



Managing fraud can be a daunting task. Legislation often requires monitoring, auditing, collecting and reporting requirements on specific entities. Regulating entities must coordinate these efforts into a fraud-prevention plan. Plus, regulations change, fraud associates must work proactively to comply and protect the companies they work for. Fraud increases have caused a significant monetary burden for the financial institutions associated with the crimes being committed. It has also led to the exploitation of ineffective fraud rules and regulations. In order to face these challenges, businesses must take steps to create robust fraud and risk management standards. Companies need to proactively prevent litigation or fines. They should find real value in the processes of complying with regulations. To actively and effectively fight fraud, cost-value of products that may decrease fraud like identity verification must be added back to fraud prevention schemes. Employees must understand why maintaining these programs are important beyond simply avoiding regulatory fines. It is in company’s best interest to do everything possible to fight and prevent fraud before it can occur.



The global business climate is rapidly changing, causing compliance and fraud issues to become more complex as well. Many organizations are under the impression that their fraud compliance standards are good enough, yet this is most likely not the case. Companies must update their spending policies as new security threats are detected. This is how businesses need to work to actively to prevent fraud. Criminal fraud involves deceit or dishonest conduct to obtain money or other benefits. Globalization and technological advances have opened the door to massive amounts of criminal fraud. This is because the internet has allowed for the growth of customer not present business interactions. The digital transformation has increased the chance of identity fraud through the theft of personally identifiable information. With this information, criminals can perform account takeovers or open new fraudulent accounts. Today, identity fraud is the fastest growing crime activity on the planet. Few other industries are as competitive as telecom. With a relentless drive to acquire more customers and market share, fraud detection and management is often an afterthought. This tactic is dangerous, because identity fraud can cost telecom companies huge sums of money – and expose them to large amounts of risks.



KYC processes are a key component for monitoring customer risk.



The telecom provider must be confident that new and existing users are actually who they say they are. Performing a KYC check during onboarding is great but it is not the only time a KYC check should occur. KYC checks should take place throughout the time a customer account is active. This will give businesses the opportunity to continually assess whether they are doing business with nefarious characters or not. Identity theft is a threat for many people this day and age. This means it is possible for criminals to be using legitimate customer information to access and create accounts online. To deter this from happening, having a system in place to know your customer before they sign up for an account is essential. This allows a business to know more about who they are doing business with before the business relationship even starts.



Customer Identification Program (CIP) requires that individuals who conduct financial transactions must have their identities verified. It is aimed at preventing money laundering, terrorism financing, corruption and other illegal financial activities from happening. CIP requires all financial institutions to get to know their potential customers and assess their risk level during the onboarding process.



Hope with this letter Government of India, Telecom Regulatory Authority of India (TRAI) and all other Telecom Companies takes effective steps to SAFEGUARD the interest of the nation.



From,

Asha Kanta Sharma

Guwahati, Assam