To Combat OTP Frauds; Government of India, SBI Cards, and Telcos Collaborate 

OTP Frauds are so common nowadays, so Government of India took required action to combat this problem. They're testing a geolocation tracking system to detect suspicious OTP deliveries. In light of increasing phishing attacks targeting bank customers, a solution is being developed to alert individuals about potential OTP thefts.

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Testing Geolocation Tracking Solution

The Ministry of Home Affairs has joined forces with SBI Cards and select telecom operators to address the rising issue of one-time password (OTP) frauds. Under this initiative, the government is currently testing a geolocation tracking solution in partnership with banks. This technology aims to track both the registered address and the delivery location of OTPs. If a significant difference is detected between the two locations, customers will receive alerts warning them of possible phishing attempts.

Cautionary action suggested by RBI

Reserve bank of India suggested banks to stop relying on OTP authentication and also suggested some important techniques to secure yourself from OTP SCAM.

OTP fraud prevention techniques

You can apply the following techniques to secure yourself from OTP frauds:

Beware of unsolicited calls

OTP scammers often use phone calls, SMS, or emails to trick you into sharing your OTP. They pose as bank representatives, lenders, and other service providers, typically creating an urgency to get the OTP from you. It is important to note that legitimate institutions or companies do not ask for your OTP unless you initiate a transaction that prompts two-factor authentication. Hence, it is best to stay cautious of unsolicited sources.

Safeguard your sensitive information

By keeping your OTP, personal details, and account information private, you are not giving scammers a chance to trick you. They cannot access your basic details to successfully impersonate your bank or other legitimate organisations. Hence, you should avoid sharing these details over the phone, writing them down, or leaving them on unprotected networks.

Stay cautious of suspicious links

Fraudsters send malware-infested links under various pretexts like declaring a cash price, offering discounts, etc. Some attackers also impersonate service providers. You should never click on any of these links as they are used to read your device and capture OTPs. Always manually search for apps or websites instead of clicking on suspicious links.

Avoid unknown/non-verified apps

Upon downloading an app, you often need to grant permissions to access your device’s camera, photo gallery, etc. Sometimes, approving these permissions becomes necessary for KYC formalities and SMS alerts. But if a suspicious app asks for access to these functions, it can easily steal your OTP and much more. Hence, you should only download legitimate apps and grant only the necessary permissions.

Transact through secure networks

Public Wi-Fi networks tend to be risky. Scammers can use these networks to spy on your online activities and steal your sensitive information, including OTPs. When you transact through secure networks, like your home Wi-Fi or a trusted Virtual Private Network (VPN), you prevent others from accessing your confidential data.

Double-check the source

As awareness of OTP fraud prevention techniques is increasing, scammers have come up with new ways to trick you. Sometimes, their messages or emails are indistinguishable from those of legitimate sources. But they cannot duplicate the source. Hence, you should verify the sender’s number, email ID, and other details to authenticate the medium.

Update contact details

If you have changed your email ID or mobile number, ensure you update it with your bank and other financial institutions. Doing so gives you more control over your accounts. By updating your contact details on time, you can redirect important alerts like OTPs, logins, etc., to your new number and avoid unauthorised access.

Track your account activity

Sometimes, scammers ensure you stay unaware of your account being hacked to continue exploiting your financial information. They may make small transactions initially to avoid drawing your attention. By tracking your account activity through mobile apps or websites, you can detect such suspicious attempts and report them immediately.

Get cybersecurity insurance for ultimate protection

Now that you know how to avoid OTP fraud, you can confidently transact online. To protect your transactions further, you can invest in cyber insurance, a type of general insurance policy that safeguards your digital activities. Cyber insurance plans protect you against cybercrimes like phishing, malware, ransomware, data theft, data extortion, etc. With cybersecurity insurance, you can legally and financially protect yourself, should you ever face the repercussions of a cyber fraud.