Increasing OTP scams in India: How to protect yourself from rising financial fraud |

As internet and smartphone usage increases in India, so do the incidents of scams and financial fraud. It’s concerning to see the growing number of people falling victim to online scams. According to a report from the Reserve Bank of India (RBI), there has been a troubling rise in financial fraud cases. Despite the presence of various security measures, the lack of financial literacy among many individuals in India leaves them vulnerable to exploitation by fraudsters, leading to an emergence in scams such as OTP fraud.

What is an OTP scam?

You might have encountered or heard about OTP scamswhere fraudsters trick individuals into sharing their one-time passwords (OTPs) to gain unauthorized access to bank accounts, digital wallets, or other sensitive information. These scammers may pose as representatives from banks, e-commerce sites, or government agencies. Once they obtain the OTP, they can access and misuse the victim’s information.

Causes of OTP scams in India

Rising OTP scams in India has caused several incidents and led to various financial frauds. Here are several factors which lead the scammers to trick the victims.
Lack of awareness: Many people are not fully aware of how OTP scams operate and can fall prey to phishing attempts.
Phishing tactics: Scammers use sophisticated methods, such as fake websites, phone calls, or messages, to trick individuals into revealing their OTPs.
Weak security practices: Some individuals and organizations do not employ robust security measures, making it easier for scammers to exploit vulnerabilities.
Social engineering: Scammers often use manipulative tactics to gain trust and convince victims to share their OTPs.
Inadequate cyber hygiene: Users may not follow basic security practices, such as not sharing OTPs or clicking on suspicious links.
Fraudulent call centers: Some scammers operate call centers to impersonate legitimate entities and extract OTPs from unsuspecting victims.

How to avoid OTP scams

In response to this growing threat, the Indian government’s cybersecurity agencies, CERT-Inyou have issued safety guidelines. Here are some crucial steps to protect yourself from OTP scams:

Also read: KYC fraud: What is it, how it happens, and tips to avoid KYC fraud