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Peru Escalates Crackdown on Street SIM Sales as Movistar Vows Legal Action

A new emergency decree authorizes coordinated police inspections targeting informal chip and phone markets in Lima and Callao.

Overview

  • Police raided the Las Malvinas commercial area on October 23, seizing 1,100 phones—about 200 listed as stolen—and a large batch of SIM cards under emergency powers that dispensed with standard warrants.
  • Movistar reiterated that mobile line contracting is limited to official points of sale, asked authorities to report any public vendors of its chips, and said it will initiate legal proceedings while tightening controls with distributors.
  • Decreto Supremo Nº 124-2025-PCM empowers a Committee of Fiscalization to conduct joint operations against informal sellers and to suspend lines tied to extortion or kidnapping in accordance with the law.
  • Media published audio attributed to Claro Perú CEO Miguel Rivera in which he reportedly acknowledges that roughly 75% of the company’s chip sales occur through street channels.
  • Osiptel has imposed more than S/66 million in fines on mobile operators for 2020–2023 compliance breaches, as authorities and specialists warn that informal chip sales enable extortion, phone fraud and identity theft due to lax identity verification.