Hyderabad Police Dismantle Nationwide Ghost SIM Fraud Ring in Major Operation

Hyderabad City Police have successfully dismantled a sprawling ghost SIM network operating across the country, resulting in the arrest of 66 suspects linked to cybercriminal enterprises. The operation, designated Octopus 3.0, was spearheaded by the Cyber Crime wing after investigators uncovered 1,194 ghost SIM cards connected to fraud investigations.

The enforcement action unfolded over seven days, with 18 specialized task forces conducting simultaneous raids spanning 13 states. During these operations, police confiscated 544 SIM cards, comprising 432 that remained sealed and 112 already in active use. Among those detained were 44 individuals who directly utilized ghost SIMs, 20 Point of Sale agents and telecom retailers, and two SIM card suppliers.

The criminal enterprise was linked to 76 cybercrime incidents registered nationwide, with the aggregate fraud amount reaching ₹101.87 crore.

Multi-State Network Exposed

The investigation revealed coordinated operations spanning Telangana, Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh, West Bengal, Delhi, Haryana, Gujarat, Madhya Pradesh, Tamil Nadu, Odisha and Punjab. Among the PoS agents arrested, 10 were employed by Vodafone Idea, seven by Airtel, and three by Jio.

Investigators discovered that these agents had been surreptitiously activating additional SIM cards while processing legitimate customer requests. During new SIM issuance and mobile number portability procedures, agents fabricated technical issues—citing network malfunctions, server glitches, or biometric scanning failures—to collect multiple fingerprint records from unsuspecting customers.

The scheme extended to organized camps established in isolated villages and tribal communities, where residents with limited literacy were lured with promises of complimentary internet access. Agents collected Aadhaar biometric data under false pretenses and created SIM connections registered to unaware individuals.

E-SIM Technology Enables International Fraud

A particularly sophisticated aspect of the operation involved the rapid conversion of illegally activated SIM cards into e-SIM format immediately following activation. These digital SIMs were then transmitted electronically to international cybercriminal organizations without requiring physical transportation across borders.

Overseas criminal networks leveraged the Indian mobile numbers to establish WhatsApp and Telegram accounts, construct fraudulent profiles on matrimonial and dating websites, and orchestrate elaborate deception schemes. Victims were systematically defrauded of substantial sums, ranging from lakhs to several crores of rupees. Additionally, sextortion syndicates and perpetrators of digital arrest scams exploited these Indian-based numbers to intimidate and threaten targets, who readily trusted communications originating from domestic phone numbers.

Police noted that participating SIM agents frequently abandoned their retail operations overnight following the activation of thousands of SIM cards destined for criminal use.

Regulatory Response and Preventive Measures

Following the operation, Hyderabad Police have scheduled consultations with executive leadership from Airtel, Jio, and Vodafone Idea to address systemic vulnerabilities. The department intends to petition the Department of Telecommunications and the Telecom Regulatory Authority of India to strengthen Know Your Customer protocols and eliminate regulatory gaps.

Recommendations forwarded to telecom companies include intensified monitoring of PoS agent activities, implementation of instantaneous verification procedures during SIM issuance and number portability transfers, and expedited deactivation of SIM cards connected to cybercrime cases. Officials further suggested formal sanctions against non-compliant agents and distributors.

The department also advised telecom providers to deploy sophisticated systems capable of identifying irregular patterns in bulk SIM activations and to establish data integration with the Mule Hunter Database and I4C suspect records.

Hyderabad Police have issued public advisories cautioning citizens against disclosing Aadhaar information, biometric data, or one-time passwords to any party. The public has been encouraged to procure SIM cards exclusively through authorized retailers. The Sanchar Saathi portal allows individuals to verify SIM cards registered under their identity.

Victims of cybercrime have been urged to contact the 1930 helpline or lodge reports via the national cybercrime portal within the critical first hour following discovery of fraudulent activity.