38.6c New Delhi, India, Friday, March 29, 2024
Business

Telecom Companies Not Preventing Phishing Activity over their Networks: Paytm to Delhi HC

By Priyam Jain      01 June, 2020 04:18 PM      0 Comments
TelecomCompanies Paytm DelhiHC

The online payment platform Paytm run by One97 Communications Ltd, recently moved the Delhi High Court alleging that telecom service providers are not blocking fraudsters who are defaulting its customers by ‘phishing’ activities over the various mobile networks. 

In a recent report, Paytm has claimed that millions of its customers have been defrauded by the phishing activities over the mobile networks and the failure of the telecom companies to prevent the same has caused immense financial losses and reputational losses to various companies which it has sought damages of Rs 100 crore from them. 

A cybercrime where people are contacted by email, phone calls, or text messages by someone posing as a legitimate representative of an organization to lure them to part with their sensitive data, including banking and credit card details and passwords known as phishing. 

In a petition raised by Paytm, it has contended that telecom majors like Airtel, Reliance, Jio, BSNL, MTNL, and Vodafone are violating their obligations under the Telecom Commercial Communications Customer Preferences Regulations (TCCCPR) 2018 which was notified by the Telecom Regulatory Authority of India (TRAI) to curb the problem of unsolicited commercial communications. 

Under the regulations, Paytm has contended that the telecom companies are required to verify purported telemarketers seeking registration with them before granting access to their customer data and take action immediately against all fraudulent RTMs. 

The petition further said that the telcos’ failure to undertake proper verification before such registration enables fraudulent telemarketers to carry out phishing activities against customers of Paytm and its associate companies.  

Under the statutory regime, it is the telecom companies’ responsibility to prevent such fraud and deter the fraudsters through blocking and/or financial disincentives. In connection to the modus operandi of fraudsters, Paytm explains that such people or entities get registered with the telecom companies and get assigned themselves headers, like Paytm, PTM, PYTM, IPAYTN, PYTKYC and its derivatives, which are indeed similar to official headers of Paytm including BPaytm, PAYTMB, FPaytm and mPaytm and then they send messages to its customers for getting their sensitive and private information, including account details and passwords. 

Various links are included in the messages which when clicked install software on the phone allowing the fraudster to get the customer’s financial account details stored on the device. Customers receive calls from fraudulent RTMs and then their private information is sought under the pretext of completing their KYC requirements for making their Paytm wallets operational. 

Directions have been sought from the court to TRAI by Paytm to ensure complete and strict implementation of TCCCPR provisions to curb fraudulent unsolicited commercial communications sent over mobile networks and to take action against the telecom companies for violating their obligations to verify telemarketers under the regulations. 

Further, Directions have also been sent to the center to ensure no sim card is sold without proper verification and to establish an inter-agency task force to coordinate action for limiting fraud taking place over telecom networks. Paytm has alleged that the violations were brought to the notice of the telecom companies, but they failed to take prompt action to block the fraudulent RTMs and impose financial disincentives against them. 

It has also been claimed that certain TCCCPR provisions provide for the only action against those telemarketers who make unsolicited communications in bulk and provide for only graded penalties and had has sought an order declaring such regulations as unconditional and ultra vires the TRAI act. A declaration has been sought from the court that under the regulations the telecom companies are obligated to put in place mechanisms to register reports of violations from customers. 

 

 



Share this article:



Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email