Madras High Court orders Telegram to block fake PhonePe accounts
PhonePe wins interim order to curb fraudulent channels, Telegram faces increased regulatory pressure.
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In an interim order dated October 30, the Madras High court has instructed social media platform Telegram to block and delete channels and chatbots impersonating the fintech app PhonePe, as per reports. The directive came after PhonePe filed a suit, alleging that various fraudulent channels on Telegram were redirecting funds meant for the payments platform to scammers, resulting in financial damages.
The lawsuit outlined PhonePe's concerns over channels impersonating its brand, which posed significant risks to both the company and its users. In response, Telegram argued that it faced challenges in identifying and blocking such channels early in their activity but promised immediate action if PhonePe flagged these accounts.
PhonePe has committed to alerting Telegram of these accounts via email whenever they are identified. Justice K Kumaresh Babu instructed Telegram to block the IP addresses of URLs flagged by PhonePe.
This development highlights ongoing legal and regulatory scrutiny of Telegram's platform in India. Telegram has previously been implicated in cases involving criminal networks.
In September, Star Health filed a similar complaint with the Madras High Court after a hacker group named xenZen created chatbots on Telegram that allegedly offered to sell data obtained from a breach for $150,000.
Globally, Telegram's operations have drawn the attention of regulators and law enforcement.
Recently, Telegram's founder Pavel Durov was arrested in France in connection with investigation into criminal activities hosted on the platform.
Telegram has also been investigated by the Indian government for extortion and gambling, with the Ministry of Electronics and Information Technology (MeitY) issuing a notice in October 2023 demanding the removal of Child Sexual Abuse Material (CSAM) from the platform.
Following Durov’s arrest, Telegram has implemented some changes to its content moderation policies. The platform introduced a button to report illegal content and has integrated artificial intelligence tools to detect and limit illegal content in its search functionality.
Additionally, Telegram pledged to cooperate with judicial authorities by sharing a user’s phone number and IP address when ordered by a court, provided it undergoes legal analysis. The platform will disclose these actions in a quarterly transparency report.
