During a recent Operation Cyber Shield investigation by the Chhattisgarh Police, authorities uncovered that certain SIM retailers were misusing customers’ Aadhaar and biometric data to activate unauthorized SIM cards. These illicit connections were subsequently sold to fraudsters who used them in KBC lottery scams, WhatsApp‑based sextortion, and other online financial crimes.

Exploiting the e‑KYC Process

Under India’s mandatory Aadhaar‑based e‑KYC for mobile activation, a user must verify identity via fingerprint and iris or eye‑blink authentication. Retailers, however, repeatedly performed or fabricated these verifications, creating additional SIMs in the customer’s name while only one legitimate card was handed over.

Real‑World Impact: Lottery and Sextortion

The probe was triggered by two separate cyber‑crime cases. In one, a resident of Gariyaband district lost ₹7.9 lakh after falling for a fake investment scheme. In the other, fraudsters posing as KBC lottery officials claimed a victim had won a prize but demanded a “processing fee” before releasing the money. Both cases involved phone numbers registered under unsuspecting citizens’ names.

Evidence and Arrests

Police analyzed telecom activation logs, subscriber details, technical evidence and witness statements to trace the racket. Two point‑of‑sale agents were arrested after admitting to misusing the e‑KYC process to generate unauthorized SIMs. Investigators are now working to identify the cybercriminals who purchased these cards and to assess the full scale of the network.

Security Recommendations

Citizens are urged to remain vigilant when buying SIM cards, ensure that only one SIM is activated per e‑KYC session, and routinely verify mobile connections linked to their Aadhaar to prevent identity misuse. The state has also proposed stricter oversight of SIM retailers to curb such fraud.