We missed this earlier: The Mobile Number Validation (MNV) service should be implemented in collaboration with banks, non-banking financial companies (NBFCs), and fintech companies to limit the use of mobile numbers in fraudulent or mule accounts, the Parliamentary Standing Committee on Home Affairs has said. This comes as part of the committee’s report on cybercrime protection.
As part of the section discussing the Department of Telecommunications’ (DoT) work in curbing cybercrime and financial fraud, the committee took note of the recently released draft Telecom Cybersecurity Amendment Rules, 2025. These rules state that all businesses that use telecom identifiers to verify their customers must use a government-operated MNV platform to check mobile numbers. The platform would send queries to telecom companies’ databases to validate businesses’ customers. The committee report suggests that the DoT is piloting this MNV platform to prevent the use of mobile connections in mule accounts.
Note: MediaNama has extensively covered the committee’s report on cybercrime, its ramifications, protection, and prevention. You can access all the stories through our guide here.
What are mule accounts?
Mule accounts are bank accounts that criminals use to send and receive illicit funds, with or without the knowledge of the account holder. In some cases, innocent people get tricked into becoming money mules through job scams, phishing emails, or social media messages. In other cases, a person may voluntarily become a money mule for a financial incentive and lend their account for these fraudulent transactions.
These mules are used to carry out rapid financial transactions, making it hard for authorities to follow the money trail. One of the noticeable signs of mule accounts is the presence of multiple accounts with the same address and contact information.
The rationale behind the MNV platform:
As per the report, the DoT informed the standing committee that it currently has no way to identify whether a mobile number used for availing a service (such as opening a bank account) actually belongs to the person in whose name the account is opened. They explained that fraudsters and cybercriminals often exploit this gap. With the MNV platform, entities using telecom identifiers will be able to ensure that a mobile number corresponds to the person in their database.
In terms of enforcement, the DoT told the committee that it would address any violation of Know Your Customer (KYC) or validation requirements by telecom operators in accordance with the Telecommunication Act, 2023.
During MediaNama’s discussion on the draft MNV rules, Vikram Tiwathia, Deputy Director General of the Cellular Operators Association of India (COAI), explained that the most prevalent form of KYC mechanism today is the mobile number. “So, the intent of the government is, how can I squeeze more juice out of this national resource?” He theorised…
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
