The Karnataka High Court directed BSNL to compensate a co-operative bank with over Rs 55 lakh after an unauthorized duplicate SIM issuance enabled fraudsters to steal Rs 87 lakh.
BSNL's negligence enabled duplicate SIM issuance, causing ₹87.7L bank fraud; court orders ₹55.5L compensation. SIM swap attacks on OTP channels underscore authentication weakness; vendor liability now established—shifts banking security investment toward MFA, biometric, hardware security keys.
The ruling comes after a co-operative bank suffered ₹87L loss due to SIM swap fraud
Jun 07, 2026
05:33 pm
What's the storyThe Karnataka High Court has directed Bharat Sanchar Nigam Limited (BSNL) to pay over ₹55 lakh in compensation and damages.
The ruling comes after a co-operative bank suffered a loss of over ₹87 lakh due to a SIM swap fraud.
BSNL ordered to pay over Rs 55 lakh compensation to co-operative bank after duplicate SIM used to access OTPs in Rs 87 lakh fraud
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