The booming black market for SIM cards is putting Hong Kong’s telecom security at risk, despite stricter regulations

September 29, 2024 – (Hong Kong) To streamline the activation of prepaid SIM cards (PPS) and strengthen telecommunications integrity, the Office of the Communications Authority (OFCA) in Hong Kong has introduced a new measure for HKID cardholders.

From October 1, residents can use the iAM Smart mobile application for real name registration by default when they activate their PPS cards through online platforms offered by telecommunications service providers.

This initiative is part of the broader Real-Name Registration Program for SIM cards, which mandates the use of HKID cards for such registrations to prevent misuse and simplify the management of telecommunications services. However, the ability to bypass the iAM Smart app remains, requiring service providers to manually verify submitted registration details before activating the PPS cards.

The announcement comes against the backdrop of ongoing challenges in reducing the misuse of registered SIM cards. Despite strict regulations, market research shows that many loopholes still exist, with SIM cards registered under false identities being sold openly online and through informal sellers in places like Mong Kok and Sham Shui Po.

At a joint publicity event organized by the OFCA and the Digital Policy Office in Mong Kok, efforts were made to educate the public about the new improvements and assist them with on-site iAM Smart registrations. The OFCA has also strengthened its guidelines for service providers to more rigorously investigate user information and refer suspicious cases to law enforcement. This is in response to the alarming trend of phone scams and other deceptive practices enabled by unregistered SIM cards that are often used in criminal activities.

Recent statistics from service providers highlight the scale of the challenge: by the end of August, approximately three million registration attempts were rejected for not meeting the necessary requirements, with approximately 2.64 million non-compliant PPS cards issued.

Despite these measures, the market for pre-registered SIM cards under the guise of other individuals’ identities is flourishing. Undercover investigations have revealed that these cards are still being sold, with varying prices and promises of anonymity for users, increasing the challenge of detecting illegal activity. In addition, some vendors are taking advantage of the lack of registration requirements for international SIM cards, known as “travel cards,” which are marketed to tourists and locals planning to travel abroad.

There have been few, but significant breakthroughs in law enforcement. In August, a transnational crime group that used forged identity documents to register local SIM cards was dismantled by police. The group had managed to register at least 300 SIM cards through online applications, alter passport images and embed photos on HKID cards using sophisticated software.

Despite these ongoing challenges, OFCA continues to urge the public to strictly adhere to registration requirements and use only their original identification documents. Providing false information or documents during registration is a criminal offense under Hong Kong law, potentially leading to severe penalties, including imprisonment.