DoT’s Digital Intelligence Platform and Telecom Analytics Portal: Curbing Telecom Frauds and UCC

Introduction

On 2 July 2021, the Department of Telecommunications (DoT) announced the approval for the creation of the ‘Digital Intelligence Unit’ (DIU) and ‘Telecom Analytics for Fraud Management and Consumer Protection’ (TAFCOP) to curb financial frauds committed through misuse of telecom resources, such as consumer harassment by sending of unsolicited commercial communication (UCC), use of false or forged documents to obtain telecom resources, and other deceitful activities. The circular issued by DoT in this regard bespeaks its aim to inter alia provide effective resolution to consumers against bad actors, enable better coordination between concerned authorities and law enforcement agencies (LEAs), and monitor the circulation of UCC.

Background

To prevent the misuse of telecom resources and fraudulent activities such as phishing calls, the Telecom Regulatory Authority of India (TRAI) and DoT have been taking proactive steps such as the introduction of the Telecom Commercial Communications Customer Preference Regulations, 2018 (TCPR) for registration of entities sending commercial communication (e.g., promotional calls or messages), ensuring consumer consent, scrubbing of UCC, etc.

Despite this framework, several entities continue to flout the rules which has also led to TRAI issuing warnings to defaulting entities to comply with the TCPR. Yet, in recent times, there have been several reports of fraudulent banking alerts and calls and even instances of SIM swaps (obtaining a SIM with someone else’s registered number) to receive OTPs for transaction. These instances have certainly been a wake-up call for the authorities to devise more stringent measures to control such deceitful activities.

DoT’s New Measures

During this year, the Government of India has been deliberating various measures to tackle the above issues through its press releases. The DoT thereafter issued the circular under discussion on 2 July 2021 elaborating on the functions of the DIU and the TAFCOP and the forthcoming scrutiny. Some of the key highlights of the circular are:

Comment

This circular by DoT is certainly a step towards regulating commercial communication and telemarketing activities, especially UCC and financial frauds. From a consumer’s perspective, this is likely to alleviate the mechanism for lodging complaints against ‘spam’ calls and messages, phishing, and other fraudulent activities. This will be a key lookout area for telemarketers and entities making any promotional and/or transactional messages and calls (whether on their own or through telemarketers).

It is yet to be seen how DoT’s new measures will be integrated into the TCPR by TRAI. Amendments to the TCPR may be anticipated, especially with the introduction of the graded financial penalties (which has been a grey area under the TCPR thus far). Given the recent trends towards stricter enforcement by the regulatory authorities, it is more crucial than ever for entities operating in this sector to comply with TCPR. 

-         Harsh Walia (Partner) and Tanya Varshney (Associate)

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