eSIM convenience rises as security risks shift for enterprises

There is the OG Don—the 1978 one—and there is the one that followed in 2006. What is the biggest difference between the two? Wait. Pause before you blurt out the names of Amitabh and Shah Rukh. If you think for a moment longer, you may recall that both the cops and the goons were chasing a diary in the first one—something that flew through the air more than once and had its own volleyball moments between good guys and criminals alike.

That red diary was replaced by a thin, sleek CD in the next Don. And as the world moves deeper into software, AI, and invisible data, who knows — someday the goons and the cops might be after a quantum wave. Floating in the air, full of data, and impossible to touch. That would make quite a film.

But would the central plot really change? Does invisibility, intangibility, and omnipresence make things easier for the good guys—or actually help the bad ones? Enterprises cannot afford to leave this as a blind spot, especially as eSIMs, iSIMs, and AI-driven devices are redefining mobility, connectivity, and security. With employees’ phones and IoT devices carrying corporate data, and eSIMs becoming the next node in the IoT chain, businesses must ask: has anything really changed with this new kind of SIM?

A lot, particularly in terms of convenience, flexibility, and mobility. As for security, that story is only getting more layered.

No Pocket for Pickpockets

We have all inserted that small chip at some point—the ubiquitous SIM, short for Subscriber Identity Module. It is the integrated circuit on mobile devices that stores essential data, such as the International Mobile Subscriber Identity, authentication keys, and subscriber credentials.

Until recently, these chips were physical, growing smaller as devices grew smarter. Then came eSIM—the embedded SIM—and now iSIM, or integrated SIM. The difference? These new versions live directly inside the device. No trays, no swapping, no lost chips. They are activated digitally and do not need physical handling, solving one of the biggest hassles of global mobility: managing multiple SIMs while roaming.

“eSIM and iSIM are both milestones in the evolution of SIM technology,” explains Sachin Arora, Head of Connectivity and IoT, Giesecke+Devrient India. “An eSIM is a dedicated chip embedded in the device, whereas an iSIM is integrated directly into the device’s System-on-Chip (SoC) alongside the processor and modem. This makes iSIM far more compact and efficient.”

From a hardware standpoint, eSIMs already reduce the device footprint, but iSIM goes further—saving space, reducing power consumption, and simplifying manufacturing. That is crucial for wearables, industrial sensors, and compact IoT devices, Arora notes.

Shirsanka Saha, Consultant for eSIM, OTA, and IoT SIM compliance, explains the difference succinctly: “A physical SIM is a removable smart card with subscriber identity and authentication keys. An eSIM, or embedded Universal Integrated Circuit Card (eUICC), is a hardware element embedded in the device, but its SIM profile—the network credentials and carrier identity—is provisioned over the air. The eSIM profile is software-managed and cannot be manually swapped.”

Replacing physical SIMs with embedded versions also gives device manufacturers more design flexibility. Rishi Padhi, Principal Research Analyst at Gartner, says, “It enables better control over form factor and component placement—for foldables, it enhances design; for wearables, it supports miniaturisation. The latest Apple iPhone 17 series gained over 250 mAh of battery capacity because the SIM tray space was redeployed for battery components.”

The evolution is not limited to consumer electronics. Industrial IoT, smart utilities, connected cars, and logistics networks are adopting eSIM for its scalability and remote provisioning capabilities. It is a paradigm shift where connectivity itself becomes programmable.

But flexibility raises an important question: Does it come at the cost of security?

Built-In Security: Harder to Steal

Technically, eSIMs and iSIMs are much harder to steal or tamper with than physical SIMs. They employ advanced encryption protocols, hardware-level security, and remote provisioning systems designed as per GSMA standards such as SGP.22 (Consumer eSIM) and SGP.32 (IoT eSIM).

They use Transport Layer Security and encryption algorithms such as the Advanced Encryption Standard, along with tamper-resistant Secure Elements. Public Key Infrastructure ensures strong identity verification between devices and carriers, while remote provisioning frameworks allow profiles to be downloaded, updated, or revoked securely.

Because eSIMs rely on digital authentication, they inherently reduce fraud. With encryption between the device and carrier, interception becomes almost impossible. Digital footprints make every activity traceable, improving network visibility for enterprises.

“Both eSIM and iSIM support remote SIM provisioning,” Arora notes. “While eSIM uses a dedicated secure element, iSIM integrates the same functionality within the SoC. This maintains carrier-grade security while offering the scalability required for massive IoT adoption.”

Padhi elaborates further: “The eUICC is tamper-resistant and permanently fused into the mainboard, providing stronger protection than removable SIMs. GSMA’s Remote SIM Provisioning standards govern how profiles are securely managed and authenticated, establishing a robust, standardised defence layer.”

Saha adds that digital provisioning also reduces supply chain vulnerabilities: “Physical SIMs can be intercepted or tampered with during shipment. eSIM provisioning is digital, minimising such risks. Enterprises can activate or deactivate eSIM profiles remotely, even across borders. Lost or compromised devices can be disabled instantly.”

In large organisations, these capabilities translate into operational efficiency. Global firms can deploy hundreds of devices with pre-configured network profiles, update them over-the-air, and track compliance.

But as the locks evolve, the burglars do not quit—they get smarter.

New Locks, New Hackers

Are eSIMs safer than their plastic predecessors? The answer is nuanced.

“The marketing narrative emphasises that eSIMs are more secure since they cannot be removed from stolen devices,” Padhi says. “However, the risk shifts from physical theft to digital manipulation—cloning, spoofing, SIM swap attacks, and OTA backdoors.”

Rahul Tandon, Senior VP, Connectivity Services, IDEMIA Secure Transactions, agrees: “The rise of eSIM and AI-rich devices redefines connectivity and convenience but also expands the threat landscape. It demands a future-ready trust framework to ensure long-term resilience.”

Vivek Srivastava, Country Manager, Fortinet India and SAARC, adds: “Mobile devices have become pocket-sized computers. They must be secured so that they do not become an entry point for cybercriminals into enterprise systems.”

Recent research from Security Explorations found vulnerabilities in certain eUICC implementations—linked to older Java Card flaws—that could be exploited to extract digital keys or install malicious OTA payloads. These require brief physical access but highlight potential weak spots in some vendor stacks.

SIM hijacking remains another persistent threat, where attackers trick carriers into transferring numbers to new profiles. Fake QR codes, eSIM data breaches at carrier endpoints, and even the throttling of eSIM profiles by unauthorised intermediaries have emerged as concerns.

Still, experts note that the encryption standards in eSIMs remain robust. Jim Handy, Semiconductor Analyst at Objective Analysis, reassures, “SIMs and eSIMs employ military-grade cryptography. Breaking these codes would need immense computing power, possibly quantum systems. As of now, AI or supercomputers cannot realistically breach them. The weakest link remains user negligence.”

Choon Hong Chee, Head of Consumer Channel, APAC, Kaspersky, concurs as he says, “From a technical standpoint, eSIMs are more secure than physical SIMs. But that security depends on encryption, robust KYC, and user awareness. Greater convenience often comes with greater exposure.”

More Software, More Soft Targets

Would more convenience, flexibility, and AI-driven connectivity mean more fragility? Quite possibly.

Tandon warns: “These features improve the user experience but also expand the attack surface. As hardware gives way to software ecosystems, the trust layer must be stronger than ever. Without robust cryptography, trusted execution environments, and secure elements, software-only systems are open to exploitation.”

Handy simplifies it further, “The biggest risk is not the technology—it is people. Password hygiene, access discipline, and common sense remain the best defences. AI simply magnifies the speed and scale of potential abuse.”

AI also brings fresh risks like bias, data misuse, and adversarial attacks if not governed properly. Tandon highlights that IDEMIA integrates identity, device, and transaction-level protection using GSMA-certified eSIM management, continuous DDoS monitoring, and post-quantum cryptography to future-proof transactions.

Arora underlines the need for collaboration: “Operators must proactively engage policymakers to update privacy and data laws. Investments in secure-by-design architectures are essential.”

Chee points to practical steps: “Our Kaspersky eSIM Store merges flexibility with security—allowing users to pre-activate plans, monitor usage, and avoid risky public hotspots.”

Padhi notes how OEMs are also embedding trust at the silicon level: “Companies like Apple, Google, Qualcomm, and Samsung use proprietary Trusted Execution Environments such as Secure Enclave or Knox Vault. These create hardware roots of trust, anchoring encryption deep in silicon and extending it through the software stack.”

Tandon adds that post-quantum cryptography will be vital to protect future eSIM transactions once quantum computing becomes mainstream.

Still, Padhi identifies a behavioural challenge. “Security opt-ins fail due to user fatigue. Protections should be the default, requiring users to opt out instead. It is a small policy change that can transform security across the board,” he points out.

The Enterprise Equation

For enterprises, eSIMs are both a gift and a responsibility. They simplify global mobility, streamline provisioning, and integrate seamlessly into unified device management platforms such as Mobile Device Management and Unified Endpoint Management. Remote onboarding and instant activation reduce friction for distributed teams and IoT rollouts.

eSIMs also bring traceability—every activation, update, or deactivation leaves a digital record, making compliance audits easier. When combined with Zero Trust frameworks, they enhance visibility into every device connected to the corporate network.

But enterprises must also factor in the risk of rogue provisioning, compromised profiles, and insider misuse. Continuous monitoring, multi-factor authentication, and eSIM lifecycle management become critical pillars of enterprise security. With India’s growing 5G infrastructure, these technologies will soon play a role in smart factories, connected cars, and Industry 4.0 ecosystems—each demanding secure, programmable connectivity.

Embracing Flexibility, Guarding Vigilance

Security with eSIMs and iSIMs does not vanish; it evolves. The same tightrope — only higher, with stronger winds.

As Don once said, he may forget to greet his friends, but he never forgets to keep an eye on his enemies. That is exactly what enterprises must do: embrace the flexibility and intelligence of next-generation connectivity, but never turn their backs on the new-age hackers waiting in the dark.

The red diary may be gone, but the red pill remains.