The Karnataka High Court rules that telecom service providers can be held civilly liable for financial losses caused by SIM swap fraud when negligence in issuing a duplicate SIM enables the crime. In the case, a cooperative bank suffers a loss of about ₹50 lakh (reported as ₹87 lakh in one account of the fraud). The court finds that BSNL’s actions in relation to the issuance of a duplicate SIM fall short of the duty of care expected, and that this lapse contributes to the fraud.
The court dismisses BSNL’s challenge to the compensation order and increases the financial liability. It directs BSNL to pay compensation of around ₹55 lakh, along with interest, to the bank. The ruling emphasizes that telecom operators carry heightened responsibility because their networks are used to support authentication and banking-linked access, such as through SIM-based verification. The decision highlights that when a SIM swap is facilitated by improper handling or verification by a telecom provider, the provider may face consequences for the resulting monetary loss.
