Biometric SIM Card Registration Misuse Causes Consumer Harm in Indonesia

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Indonesian sellers have misused AI-based biometric facial recognition for SIM card registration by activating cards with their own data before selling them. This practice leads to customers' SIM cards not being registered under their identity, causing security, privacy, and legal harms. Authorities warn against such misuse.[AI generated]

Why's our monitor labelling this an incident or hazard?

The use of AI-based facial recognition in SIM registration is explicit. The misuse by sellers to activate numbers fraudulently involves the AI system's use leading to a breach of obligations under applicable law protecting personal data and identity rights. This fits the definition of an AI Incident under violations of human rights or breach of legal obligations. Although no physical harm is reported, the misuse of biometric data and fraudulent registration is a significant harm related to rights and legal compliance.[AI generated]
AI principles
AccountabilityPrivacy & data governance
Industries
Consumer services
Affected stakeholders
Consumers
Harm types
Human or fundamental rightsPublic interest
Severity
AI incident
Business function:
ICT management and information security
AI system task:
Recognition/object detection

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