Duplicate SIMs exposes a structural flaw in UPI, shows court ruling

▤ Summary

The article explains how a Karnataka High Court ruling assigned liability to BSNL after a duplicate SIM enabled a SIM swap fraud that caused bank losses. It argues that India’s UPI and broader digital payments stack remains vulnerable because the mobile number acts as the master authentication channel. It also shows that device binding protects the UPI app itself but does not stop fraud across internet banking, RTGS, or NEFT when the SIM is compromised. The piece highlights that regulators are tightening telecom controls, but the core design weakness remains. For vendors, the case underscores the need for stronger telecom verification, fraud detection, and identity assurance tools.

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