Yes, you need to use DM_Sims that will recognize if your sim is T1 (Team Ferrari) or T2 (Team Sim2), and if the sim is upgradable, will upgrade it using a smartcard reader called GCR2 for T1 or GPR for T2.
You can find all on google searching for "DM_Sims" + "GCR2".
This is the only way to be sure to upgrade the sim properly and not corrupt it.
TS