Time Password or OTP is a security measure developed for safe transactions. Since OTP is a time-bound security step, it has gradually become a mandatory or most used security step in e-transactions. It’s working great however the scammers have found a way to extract OTPs from the users to con them financially.
Why is OTP Given?
The one-time password is a unique security code sent to the user for the confirmation of the identity to protect the transaction from any fraud. Its foremost objective is to prevent financial transactions from any security breach. With an OTP the risk of compromised account details falls drastically and clear payment or transfer is completed.
An OTP prevents identity theft and makes sure that the user’s name and password pair can’t be used the second time. Typically the login name stays the same, and the one-time password keeps changing in every transaction.
3 Ways OTP Frauds Can Happen
1. Fraudsters impersonating real companies:
Fraudsters keep on finding ways to con users and pretending to be an actual company. For instance, someone calls you and says to be an agent of “FlexSalary” and asks for your account details. While in reality, FlexSalary or any real company will never ask you for such information.
FlexSalary, being a legitimate company and a loan offering company from Vivifi India Finance Private Limited, which is registered with RBI, your experience with it has always been good, you might believe this conman and end up sharing your account details. Once you share all the details, financial frauds wait for nothing. It often leaves people in debt if the fraud happens to a credit card or loan account.
2. Installing the malware in your devices:
Scammers can mirror your phone and then use it for their needs. Using your banking apps to UPI account access is not a big deal for fraudsters once your phone is under their control. This happens by the installation of malware apps or software on your phone on the pretext of addressing a grievance or any other genuine reason.
3. Conning you into revealing the password:
Asking for OTP or tracing is the most common cyber-OTP crime happening around the world. Scammers lure you with false promises or intimidate you with severe consequences for asking the OTP. In reality, no vendor asks for OTP on call or SMS, it’s entered only by you specifically on the payment gateway.
How to Avoid OTP Frauds?
Staying alert and aware is the simplest way to avoid OTP Fraud. Unfortunately, if any OTP fraud has already happened, inform the concerned authorities and lodge a complaint against the fraud.
Following are a few tips that can save you from OTP Frauds.
- Be careful and avoid clicking on the links attached to a message especially when you are unsure about who the sender is. These links might be malware breaching all your private data.
- Never download third-party apps such as AnyDesk even if it’s claimed for updating the KYC. No genuine companies do this.
- A sincere caller will never ask for the OTP, never disclose it, not even with your financial provider
- Keep checking your text messages and emails to ensure that no OTP has been generated without your prior consent.
- Always use the official website or contact details to connect with your financial provider for seeking any information.
OTP refers to the additional layer of safety for most online exchanges. OTP fraud is done either by misleading individuals into sharing the OTP over a call or luring them anyhow to download malware that can steal the OTP. Not sharing your OTP, not tapping on links in spontaneous messages, and always using the official channels of correspondence can help you avoid OTP frauds.