Telecom Operators Face Stricter Legal Duties to Combat SIM Fraud and Spam Calls

For years, fraudulent SIM cards and spam calls have remained one of the most pressing challenges in the telecommunications sector. What once began as unwanted marketing calls has evolved into increasingly sophisticated scams, with fraudsters impersonating government agencies, banks, financial institutions, and businesses to deceive victims and steal their money. In many cases, telecommunications networks have been exploited as tools to facilitate these illegal activities. The consequences extend far beyond mere inconvenience, posing serious risks to personal data security, financial safety, and public trust in the digital environment.

Despite years of regulatory efforts and technical measures, the widespread use of unregistered or improperly registered SIM cards has continued to enable unlawful activities, including spam advertising, identity impersonation, and telecom-enabled fraud. To strengthen regulatory oversight and ensure greater accountability within the telecommunications industry, the Vietnamese Government issued Decree No. 174/2026/ND-CP on administrative sanctions in the fields of postal services, telecommunications, radio frequencies, electronic transactions, and information technology. Effective from 1 July 2026, the Decree establishes a stricter legal framework that places clear responsibilities on telecommunications service providers and reinforces their direct accountability for every subscriber identity module (SIM) issued through their networks.

One of the most significant changes introduced by the Decree is its shift from a reactive enforcement approach to a preventive compliance model. Telecommunications operators are no longer expected merely to verify subscriber information at the time of registration. They are also required to continuously monitor their subscriber database, detect irregularities, prevent the distribution of improperly registered SIM cards, and promptly identify SIMs used for spam calls, spam messages, or other unlawful purposes. Whenever suspicious activities are detected, operators must immediately implement appropriate technical and operational measures to prevent and address potential violations in accordance with the law.

The Decree also makes it clear that telecommunications providers themselves may face administrative penalties if they fail to fulfill these obligations. Operators that do not properly manage subscriber information, fail to control SIM card distribution, neglect measures to prevent fraudulent SIM usage, or fail to take action against violating subscribers may be subject to administrative sanctions, together with remedial measures as required by law. This reflects the Government’s policy that telecommunications companies are not merely service providers but also key stakeholders responsible for maintaining a secure, transparent, and trustworthy telecommunications environment.

Overall, Decree No. 174/2026/ND-CP represents an important shift in Vietnam’s regulatory approach to telecommunications management. While previous regulatory efforts often focused primarily on the conduct of end users, the new framework places telecommunications operators at the center of fraud prevention and regulatory compliance. Compliance is therefore no longer simply a legal obligation; it has become an essential corporate responsibility to safeguard the legitimate rights and interests of telecommunications users.

As Vietnam continues to accelerate its digital transformation, building a safe and reliable telecommunications ecosystem requires more than strong enforcement against individual offenders. It depends equally on telecommunications operators fulfilling their legal responsibilities, implementing effective compliance measures, and exercising greater control over subscriber registration from the outset. In this respect, Decree No. 174/2026/ND-CP is expected to become a key legal instrument in restoring order to the telecommunications sector and reducing the misuse of telecommunications services for unlawful activities.ervices to commit violations of the law.