Hyderabad Police Crack Ghost SIM Fraud Behind Digital Arrests
In one of the biggest cybercrime crackdowns in recent times, Hyderabad City Police has uncovered a large-scale fraud network that allegedly misused Aadhaar-linked biometric details to activate illegal SIM cards used in cyber scams across India and abroad.
The operation, carried out under “Operation Octopus 3.0,” exposed how fraudsters exploited unsuspecting citizens’ fingerprints and Aadhaar information to create thousands of unauthorized mobile connections. Officials estimate that cyber frauds linked to the racket amount to nearly Rs 101.87 crore.
Illegal SIM Network Used for Cyber Frauds
According to investigators, the accused allegedly generated “ghost SIMs” using illegally collected biometric data. These SIM cards were later converted into e-SIMs, allowing cybercriminals operating from foreign countries to remotely access Indian mobile numbers without physically carrying SIM cards overseas.
Police said the numbers were widely used in several online crimes, including:
- digital arrest scams
- sextortion cases
- fake matrimonial profiles
- impersonation frauds
and social media-based cyber extortion.
Officials believe Indian numbers helped scammers appear more trustworthy while targeting victims.
Raids Conducted Across 13 States
The Hyderabad Cyber Crime Wing launched a nationwide operation after tracing 1,194 suspicious SIM cards allegedly connected to cyber offences.
Special police teams carried out raids in multiple states, including:
- Telangana,
- Andhra Pradesh
- Karnataka
- Maharashtra
- Uttar Pradesh
- West Bengal
- Delhi
- Haryana
- Gujarat
- Madhya Pradesh
- Tamil Nadu
- Odisha
- Punjab
During the week-long operation, police arrested 66 individuals, including:
- 44 alleged users of ghost SIM cards,
- 20 telecom Point of Sale (PoS) agents and promoters,
- and two SIM suppliers.
Authorities also seized 544 SIM cards, comprising both sealed and already activated connections.
Investigators stated that the accused were allegedly linked to at least 76 cybercrime cases registered in different parts of the country.
How Customers Were Allegedly Misled
Police revealed that telecom agents allegedly manipulated the SIM verification and mobile number portability (MNP) process to activate additional SIM cards without customer consent.
Customers visiting telecom stores were reportedly told that:
- servers were not working,
- biometric authentication had failed,
- or network systems were slow.
Using these excuses, agents allegedly collected multiple fingerprint scans from users and activated extra SIM connections secretly.
Officials said the fraud was especially common in rural and tribal regions, where economically weaker and less educated citizens were targeted through camps offering free internet services or SIM upgrades.
Authorities claim victims often had no idea that their Aadhaar-linked biometrics were being used to create illegal mobile numbers.
Ghost SIMs Linked to WhatsApp and Sextortion Rackets
Investigators found that the illegally activated SIMs were allegedly used to create accounts on platforms such as:
- Telegram
- dating apps
- matrimonial websites
These accounts were then reportedly used for sextortion schemes, fake identity scams, and digital arrest frauds where criminals impersonated agencies like the CBI or police departments.
Police also stated that many local telecom agents disappeared after bulk SIM activations to avoid investigation.
Telecom Agents Under Scanner
Among the arrested PoS agents, officials said:
- 10 were allegedly linked to Vodafone Idea
- seven to Airtel
- three to Jio
Bharti Airtel, Reliance Jio and Vodafone Idea are expected to hold discussions with Hyderabad Police regarding stronger verification systems and stricter compliance measures.
Police Seek Stronger KYC Rules
Officials said they will approach the Department of Telecommunications and the Telecom Regulatory Authority of India to recommend tighter KYC regulations.
Police have proposed several preventive measures, including:
- mandatory real-time verification during SIM activation
- instant blocking of SIMs linked to cybercrime
- blacklisting agents violating telecom rules
and stronger coordination between telecom operators and law enforcement agencies.
Authorities also suggested linking telecom verification systems with databases maintained by the Indian Cyber Crime Coordination Centre (I4C).
Citizens Advised to Verify SIMs Linked to Aadhaar
Police urged citizens to avoid sharing Aadhaar details, OTPs, or biometric information with unknown individuals or unauthorized agents.
People were also advised to check the number of mobile connections registered in their name through the government’s Sanchar Saathi Portal and immediately report any suspicious or unauthorized SIM cards.
Victims of cyber fraud can contact the national cybercrime helpline 1930 or file complaints through the National Cyber Crime Reporting Portal for immediate assistance.
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