Q. What is SIM swap fraud and how does it facilitate unauthorized transactions?
Answer: It allows scammers to obtain a duplicate SIM card to intercept OTPs and authorize transactions.
Notes: SIM swap fraud occurs when scammers deceive telecom providers into issuing a duplicate SIM card, allowing them to intercept OTPs and bypass authentication, thus enabling unauthorized transactions. Users should secure their accounts to prevent this fraud.
Question Source: 📚This question is part of Banking Awareness - 2025-26 course in GKToday's Android Application. The Course comprises 2400+MCQs on Banking & General Financial Awareness with explanation for All Banking Exams of 2025-26 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations. Download the app here.
📌 Question Number: 12 in Frauds in Banking in the above course in App.