DoT and SEBI join hands to fight investment scams using telecom data

India’s telecom and market regulators are stepping up coordination to tackle rising cases of digital fraud. The Department of Telecommunications (DoT) and Securities and Exchange Board of India (SEBI) have signed an agreement to share information and act faster against scams that use mobile networks to target investors.

At the centre of this arrangement is a system that allows both sides to exchange data on suspicious activity, with the aim of spotting problems early rather than reacting after damage is done.

Focus on suspicious mobile numbers

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Under the agreement, DoT will share what it calls the Financial Fraud Risk Indicator, a tool that flags mobile numbers linked to unusual or risky behaviour based on data from multiple sources.

It will also pass on a list of mobile numbers that have already been disconnected or marked for misuse. This will help SEBI and entities regulated by it — such as brokers and mutual funds — ensure that investor accounts are tied only to valid, working numbers.

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The idea is to cut off one of the common routes used in fraud — fake or compromised mobile connections.

Information will flow both ways

The exchange isn’t one-sided. SEBI will also share details of telecom resources linked to accounts that have been used in fraud, impersonation or so-called mule activities.

This information can then be used by telecom authorities to block or track such numbers, making it harder for them to be reused in other scams.

Real-time alerts through shared platform

The data sharing will happen through DoT’s Digital Intelligence Platform, which connects more than 1,400 stakeholders across sectors.

Officials say the platform allows quick sharing of inputs, helping agencies respond faster when suspicious patterns are detected.

Shift towards prevention

So far, action against such frauds has often come after complaints are filed. With this tie-up, the effort is to move towards early warnings and prevention.

Authorities believe that identifying risky numbers in advance can help stop fraud before money changes hands.

What has been done so far

Officials say more than 88 lakh mobile connections linked to fraud have already been disconnected under existing measures.

The use of the fraud risk system has also helped prevent losses worth around Rs 2,300 crore in the past ten months.

Why this matters

As more people invest and transact online, the use of mobile numbers in financial services has increased sharply. That has also made them a target for misuse.

By linking telecom data with market oversight, regulators are trying to close gaps that fraudsters often exploit, especially in fast-growing digital investment channels.