The eSIM industry is set to be worth $5.1 billion by 2030, with a 29% yearly growth rate. As the industry expands, the disappearance of physical SIM cards is becoming imminent — especially when the latest phone models are all eSIM-friendly.
For context, the eSIM is an embedded SIM already integrated inside the latest smartphone hardware that replaces removable SIM cards. Carriers program eSIMs into their networks remotely so users can activate their service from anywhere in just a few steps.
Smartphone brands have begun integrating this technology, and Apple is leading the way by completely removing the SIM card tray from the iPhone 14 in the US. Rumors have it this feature might also be absent in the upcoming iPhone 15 in countries like France. And because of these looming changes, mobile carriers are receiving less SIM card activation demand.
However, with eSIMs becoming more popular, users and business owners want to know if their personal and Internet of Things (IoT) devices are safer with the new technology. Digital approaches can mean more attack surfaces for hackers to target — and the number of weekly cyberattacks in Q3 2023 increased by 7% from the year prior. Therefore, users’ security concerns regarding remote and digital processes are justified.
The good news is: eSIMs are safer than SIM cards. But why? Here’s how the embedded technology addresses end users’ main SIM card security concerns.
SIM-swapping is gone
This type of fraud involves a malicious actor buying a new SIM card and activating it under the targeted user’s cellular line to gain control of sensitive data, like emails and bank accounts. They achieve this by gathering people’s information and then tricking telecom representatives over the phone.
After convincing and forcing the operator to swap SIM cards, the targeted user’s card becomes inactive, leaving them with no signal and possible data exposure.
Unfortunately, these scams can be severe. Early this year, a man in Colorado lost $24,500 due to SIM swapping.
This fraud is also on the rise. In its Internet Crime Report 2022, the FBI revealed that while there were only 320 SIM-swapping incidents reported between 2018 and 2020, this amount increased by over six times in 2022.
On the other hand, eSIMs are embedded into the phone, so SIM swapping is made a lot harder because of its activation security layers. Before switching lines from one device to another, carriers verify users with Personal Identifiable Information (PII), creating more safety steps that hackers need to bypass.
For businesses with IoT devices, many B2B eSIM providers are going the extra mile by securing eSIM profiles with biometric measures, like fingerprints and face ID. So, business owners can enjoy the practical benefits of this technology, like easily switching carriers, without worrying about hackers performing SIM swapping.
Port-out scams and SIM cloning don’t stand a chance
Port-out scams, similar to SIM swapping, consist of hackers switching a phone line to another SIM card. But this time, they activate it under another carrier, gaining easier control over the line to extract sensitive information or excessively use data.
eSIMs make these scams even harder since hackers need to know the user’s PII or falsify their biometrics to transfer the line to a new carrier. Here, the fate of a customer’s SIM lies in how strong the verification systems are on the carrier’s side. Sometimes, weak passwords are in place, which hackers can figure out by typing random information or knowing basic facts about the affected user.
With eSIMS, SIM cloning is also almost impossible. This fraud tactic requires a hacker to obtain and replicate a physical SIM card, stealing its International Mobile Subscriber Identifier (IMSI) and the encryption key that carriers use to identify the cellular line. Once they have access to the cloned SIM, hackers can overuse data from IoT devices, increasing costs without the business owner's knowledge.
With eSIMs, there’s no physical card to duplicate in the first place. Only carriers can reprogram an eSIM from their end, which means going through verification steps that can vary in complexity.
Getting rid of roaming insecurities and charges
The most significant advantage of eSIMs is how easy it is to switch carriers without the hassle of waiting for a SIM card to arrive in the mail or visiting a store. This way, businesses can activate their devices easily and quickly. Also, as a consequence of this offering, roaming is a dying practice.
Nowadays, users can save themselves high roaming charges by switching to traveling eSIMs instead of sticking to their national carrier when going abroad. Some even offer unlimited data plans, so users won’t need to worry about surpassing data usage and getting stranded abroad without any cellular connection.
When roaming with a physical SIM card, national networks connect to international providers that use the Signaling System 7 (SS7) or Diameter protocols. SS7, last updated in 1993, is known for its vulnerabilities, exposing users to location traffic and call and SMS interception. As for Diameter, this newer protocol takes place under the Long-term Evolution (LTE) standard and uses Internet Protocol Security (IPSec), which encrypts all IP traffic, making it safer than SS7.
However, while implementing IPSec is mandatory, using it is only optional — and not all networks enforce it. These security concerns make roaming a worrisome practice.
Additionally, buying a SIM card abroad also means unnecessarily giving away more personal information, which carriers can mishandle or secure superficially. From there, malicious actors exploit sensitive data, potentially making international trips a nightmare. Activating travel-only eSIMs is much faster and less complicated, reducing the chances of data theft and exposure to unsecured roaming networks.
Safety issues are greatly reduced when eSIMs are thrown into the mix because scams like SIM swapping and port-out are no longer viable. Thanks to embedded and digital technology, eSIMs leave security concerns on the carrier’s side, ensuring they use multiple layers of PII, biometrics, and strong passwords. As for international trips and roaming charges, users with eSIMs can control how much data they use and when to activate it without paying sky-high roaming charges.
