Explained: What is eSIM and how it can help you prevent financial frauds and scams

eSIM

An eSIM, or embedded SIM, is the digital version of the traditional physical SIM card. Instead of inserting a small card into your device, the eSIM comes pre-installed by the manufacturer and can be activated digitally through a QR code provided by your telecom operator. Beyond the convenience of switching networks without a physical card, eSIM technology plays a growing role in protecting users from financial frauds and scams.

Financial frauds often begin with a SIM-related loophole. In the case of traditional SIM cards, scammers may remove the card from a stolen phone or request a duplicate SIM in a victim’s name, a tactic known as SIM swap fraud. Once they gain control of the number, they can intercept one-time passwords (OTPs) used for banking and online transactions.

An eSIM makes this process significantly harder. Since the SIM is embedded inside the device, it cannot be physically removed or inserted into another phone. This reduces the chance of misuse if the device is stolen.

SIM swap scams are one of the biggest risks for mobile users. Criminals often trick telecom operators into issuing a new SIM, effectively taking over the victim’s mobile number. With an eSIM, this becomes more difficult because activation requires secure digital verification and scanning of a QR code tied to the original user. This added layer of authentication makes it tougher for fraudsters to replicate or clone an eSIM profile.

Most banking transactions, digital wallets, and UPI services in India rely on mobile numbers for verification. If that number is hijacked, fraudsters can gain unauthorized access to financial accounts. By making SIM swaps and unauthorized transfers more complex, eSIM helps reduce the risk of such attacks. It gives users more control over their mobile identity, which is critical in protecting personal and financial information.