My SIM stopped working and then my bank account was emptied, what happened and what can I do?

Question

My phone suddenly lost network signal and shortly after, large sums were transferred out of my bank account without my knowledge. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

My SIM stopped working and then my bank account was emptied, what happened and what can I do? is governed in India primarily by Information Technology Act, 2000 – Section 66C, Information Technology Act, 2000 – Section 66D and RBI Circular on Customer Liability in Unauthorised Electronic Transactions, 2017. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

This is a classic SIM swap fraud where a fraudster obtains a duplicate SIM using your personal details, deactivating your original SIM and intercepting OTPs to authorise bank transactions.

Section 66C (identity theft) and Section 66D (cheating by personation) of the IT Act apply to the fraudulent SIM issuance and subsequent bank fraud, each punishable with up to 3 years imprisonment.

Immediately report to your telecom operator and bank the moment your SIM loses signal unexpectedly, since this is often the first sign of an in-progress SIM swap attack, and delay materially reduces recovery chances.

Under RBI's zero-liability circular, reporting the unauthorised transaction within 3 working days of the alert entitles you to zero liability and mandatory re-crediting within 10 working days.

File a complaint with TRAI/telecom operator regarding the fraudulent duplicate SIM issuance, as the telecom company may be liable for lax KYC verification during SIM re-issuance.

What to do next: 1) Contact your telecom provider immediately to report the SIM deactivation and demand a fraud investigation; 2) Call your bank's fraud helpline to block accounts/cards and dispute transactions in writing; 3) File a complaint at cybercrime.gov.in and call 1930 for a possible fund freeze; 4) Escalate to the RBI Ombudsman if the bank does not refund within the stipulated period.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Information Technology Act, 2000 – Section 66C carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.