A Parliamentary panel has recommended introducing KYC for social media, dating, and gaming platforms to tackle fake profiles and online fraud. The idea sounds reasonable because fake accounts are often used to spread misinformation and even fuel social tensions. If every user is verified, misuse should ideally reduce. But this approach has a deeper problem, and this is the right time to question it.
India already follows strict KYC norms in banking and telecom. Opening a bank account or getting a SIM card requires proper identity verification. Despite this, cyber fraud continues to rise. Data from RBI and other government reports have consistently shown an increase in digital payment fraud cases over the years. In most cases, victims do not recover their money, and fraudsters remain untraceable.
Now think about it. Scammers operate using SIM cards issued after KYC and move money into bank accounts that are also KYC-compliant. Yet, tracing them and recovering the money remains difficult in most cases. This clearly shows that the problem is not the absence of KYC, but gaps in enforcement, coordination, and timely action.
The current recommendation assumes that fake profiles are a major driver of online fraud and misinformation. That is partly true, but it misses another critical issue. Identity itself can be misused. There are several cases involving mule accounts, rented credentials, and SIM swap fraud. These examples show that even a KYC-backed system can be bypassed.
This brings up an important concern. If KYC has not been fully effective in controlling fraud in banking and telecom, it is hard to assume it will solve the problem of fake profiles on social platforms.
Beyond fraud, the recommendation also raises questions around privacy and user behaviour. Mandatory identity verification can change how people use these platforms. Many users rely on pseudonymous accounts for valid reasons, including personal safety, satire, or sharing views that could affect them in real life. Removing that layer of anonymity could discourage open participation.
There is also a bigger concern around data and control. Expanding KYC requirements means more platforms will store sensitive user data. Given how often data breaches happen globally, this increases risk. At the same time, linking identities to online activity could raise concerns around misuse or overreach if strong safeguards are not in place.
Even if the intent is to improve online safety, a blanket KYC mandate may not be the most effective solution. A more practical approach would focus on faster fraud response, better coordination between banks, telecom operators, and law enforcement, and stronger checks at the transaction level. User awareness also remains critical, as many frauds succeed due to a lack of information.
At this stage, this is only a recommendation, not a final decision. So, we don’t need to worry. But it shows the direction policymakers are thinking in. So, it is also important to highlight the need for a more balanced and practical approach.
