In Short:
The Department of Telecommunications has suspended the operations of two telemarketing companies, V-con Intelligent Security and Onextel Media, for sending 55.5 million fraudulent SMSes. The companies misused digital assets to bypass regulations. Genuine businesses will now need to find alternate vendors. DoT has also suspended entities involved in malicious SMSes reported by users. The telecom regulator is working to combat cyber fraud in collaboration with other sectors.
Telecom Department Suspends Operations of Two Telemarketing Entities
The telecom department has suspended the operations of two telemarketing entities – V-con Intelligent Security, which is part of the Videocon Group, and Onextel Media – who were found responsible for sending 55.5 million fraudulent SMSes to telephone users.
In a directive dated July 15, the Department of Telecommunications (DoT) stated, “In the interest of safeguarding the citizens from cybercrime/financial frauds, all the TSPs (telecom service providers) are directed to immediately suspend these two RTMs (registered telemarketers) and lodge a police complaint against them for misusing the DLT platform for sending malicious and phishing SMSes.”
The two companies allegedly sent these text messages by misusing digital assets of registered business entities such as their SMS headers, bypassing the telecom companies’ centralised blockchain-based SMS filtering platform.
V-con Intelligent Security and Onextel Media could not be reached for comment, while Reliance Jio, Bharti Airtel, and Vodafone Idea did not immediately respond to queries.
Impact on Business and Genuine Users
As per market estimates, both telemarketers are handling monthly SMS volumes of between 2-4 billion from various businesses, expected to lose business worth somewhere between Rs 24-40 crore. However, not all businesses using their services are fraudulent.
Following the suspension, genuine businesses will need to find alternate vendors to continue SMS services.
Further Actions by DoT
The Department of Telecommunications has also instructed TSPs to suspend all entities, their linked headers, and content templates involved in sending malicious SMSes reported by users on the Chakshu facility of Sanchar Saathi Portal.
Earlier in March, the telecom ministry launched the Chakshu facility for users to report cyber frauds and created a Digital Intelligence Platform for real-time intelligence sharing among stakeholders.
DoT has also allocated a separate numbering series for voice calls to enhance recipient identification.
Collaboration Against Cyber Fraud
The telecom regulator is actively working with telcos to strengthen anti-scam technology solutions and collaborating with sector regulators such as the Reserve Bank of India, Securities and Exchange Board of India (Sebi), and Insurance Regulatory and Development Authority of India to combat cyber frauds.
