“This is the real anti-fraud battle.”
The recent proposal to amend the SIM Registration Act by limiting the number of SIM cards an individual can register might seem like a practical solution to the growing problem of fraud and scams, but it misses the mark. Rather than targeting the real culprits—sophisticated cybercriminals—this regulation risks placing unnecessary burdens on consumers, businesses and telecommunications companies (telcos). The government should focus on strengthening law enforcement and leveraging advanced technologies that have proven effective in combating fraud, while fostering collaboration with the telco industry to implement real solutions.
Fraud today is largely driven by sophisticated networks using tactics like identity theft and forged documents to bypass regulations. Limiting SIM registrations will not deter these criminals, who will adapt by exploiting other vulnerabilities, such as using stolen identities to register additional SIMs. Cybercriminals are agile and find ways bypass regulations like these.
More effective solutions lie in technology that has already proven successful in other countries. In the United States, for instance, AT&T’s AI-driven Network Analytics Solution blocks fraudulent calls and flags suspicious activity, contributing to their Call Protect service. AI-based fraud detection systems monitor for unusual behaviors, such as sudden spikes in SIM registrations or abnormal calling patterns, and can flag these in real-time, enabling swift law enforcement intervention. Similarly, the UK leverages data analytics and machine learning to allow telcos, government agencies, and financial institutions to collaborate in stopping scams before they escalate.
Germany offers an excellent example. Telcos and government agencies share real-time data on potential threats, supported by machine learning to detect and prevent fraudulent activities. The German Federal Network Agency enforces strict but practical guidelines for telcos, while law enforcement ensures compliance and pursues scammers. This integrated approach has significantly reduced fraud in Germany’s telecommunications sector and could serve as a model for the Philippines, encouraging a stronger partnership between the government and telcos to combat scams.
Biometric verification is another powerful tool being used to fight fraud. India’s Aadhaar system links SIM card registrations to biometric data, such as fingerprints or facial recognition, ensuring that only legitimate users can register SIM cards. This makes it much harder for criminals to use fake identities to acquire multiple SIMs.
However, technology alone is not enough. Effective law enforcement must play a central role. Since the implementation of the SIM Registration Act in December 2022, the number of fraudsters actually apprehended remains low. This suggests the issue is not a lack of regulations, but ineffective enforcement. Passing laws without the capacity to enforce them will only result in symbolic victories rather than real progress. The government must prioritize empowering law enforcement agencies with the tools and resources needed to detect, investigate, prosecute, and convict those behind these scams.
The telecommunications sector has already invested heavily in complying with SIM registration laws, but further regulations could lead to higher costs for consumers and reduced service quality. Over-regulation in any industry typically results in fewer choices and slower technological advancement, which harms consumers more than it helps. What’s needed is a balanced approach where telcos and government agencies work together to combat fraud without hindering business growth or consumer access to affordable, high-quality services.
Ultimately, the key to addressing fraud lies not in restrictive measures like SIM card limits, but in collaboration, smarter regulation, and the use of advanced technologies. Fraud detection systems powered by AI, biometric verification, and real-time data analytics can provide a robust defense against evolving criminal tactics. Moreover, governments must prioritize enforcement, ensuring that fraudsters face real consequences for their actions.
Instead of focusing on superficial regulatory fixes, the Philippine government should work closely with the telecommunications industry, adopting best practices from countries like the US, UK, and Germany, where collaboration between the private and public sectors has proven highly effective.
This collaborative approach, combined with a focus on enforcement and the use of cutting-edge technologies, can provide a more comprehensive and sustainable solution to fraud prevention. Only by tackling the root causes and using all available tools can the government hope to protect consumers and businesses from the increasingly sophisticated tactics of scammers.
