5 OTP Frauds You Should Know
Updated on 25th Mar 20253.5 Min read
You must have noticed that all official bank websites provide you with one message that says, “DO NOT SHARE YOUR OTP WITH ANYONE.”
Ever wondered why this is said? This is because OTP (one-time password) is the key that unlocks all your financial transactions. If, unfortunately, it goes into the wrong hands, it can lead to the worst fraud. With every passing year, scammers are becoming more innovative, manipulating and tricking people into sharing OTP and bank details.
At Kotak811, we help stay safe and armed with all necessary info through our campaign #ScamKaSiren. This campaign aims to warn you about different types of scams, how to identify them, and, most importantly, how to stay safe.
Types of OTP Frauds
The following are the most prevalent OTP scams in India:
1. Phishing Scams
- A typical communication method to try and obtain your OTP includes fake messages which mimic your bank e-commerce provider or government agencies.
- It takes you to a verification link to resolve account issues.
- The fake link leads you to a site that is almost like an actual website, where you enter your OTP, and scammers get access to your account.
2. Fake Customer Support Calls
- A scammer shows himself as a banking authority or service provider company official.
- The scammers contact you asking about a problem or an unauthorised transaction.
- The fraudster then deceives you into revealing your one-time password so they can access your account and commit fraud.
3. UPI Collect Request Scam
- A UPI request appears on your mobile device, asking you to approve a payment.
- The scammers say it’s for receiving money, but it’s actually a debit request.
- Once you approve that with your OTP, your funds are gone.
4. SIM Swap Fraud
- Fraudsters obtain duplicate copies of your SIM card by deceiving your mobile service provider.
- After turning on the duplicate SIM card, all originally sent OTPs will be sent to the fraudster.
- The scammer then gains access to erase your passwords and steal money from your accounts.
5. Fake Cashback & Reward Scams
- You get an SMS notification stating you have secured a reward and cashback.
- You are asked to enter an OTP to claim the prize.
- After you enter the OTP into the system, attackers gain control over your account, thereby stealing money.
How to Identify an OTP Scam
Scammers use manipulative tactics to make you act without thinking. However, there are certain loopholes:
- Unrequested OTP: If you notice an OTP requiring action that you didn’t request, know that it’s a scam.
- Threats: If you get messages like “Your account will be blocked!” “Take action now!”, etc. Understand that scammers are trying to panic you.
- OTP Request via Call and SMS: No bank company will ever ask you to share your OTP.
- Grammatically Incorrect Messages: Messages and emails with bad grammar and incorrect spellings are often fake.
- Unknown Numbers: Banks and official service providers use verified numbers, so if you get calls from unknown or international numbers, they are mostly fake.
Do’s and Don’ts
Here is a table depicting what you should and shouldn’t be doing in case of an OTP fraud:
| What You Should Do | What You Should Never Do |
|---|---|
| Ignore unsolicited OTP requests. | Never share your OTP, PIN, or CVV with anyone. |
| Verify with the official bank website or helpline. | Never click on suspicious links received via emails or SMS. |
| Report and block suspicious numbers immediately. | Never approve unknown UPI payment requests. |
| Enable SMS/email alerts for all transactions. | Never trust random callers claiming to be from your bank. |
| Use strong, unique passwords for banking apps. | Never download unofficial apps for KYC updates. |
| Check website security (look for "https"). | Never enter banking details on unknown websites. |
| Keep your banking app and security software updated. | Never allow remote access to your device via unknown apps. |
How to Report OTP Frauds in India
You can contact the following authorities:
| Reporting Authority | Contact Method |
| Cyber Crime Helpline | Dial 1930 |
| National Cyber Crime Portal | cybercrime.gov.in |
| Your Bank’s Customer Care | Visit the bank’s official website |
| RBI Ombudsman | rbi.org.in |
Summing Up
If you take simple precautions, you can protect yourself from OTP fraud. Scammers rely on deception and urgency to trick people into revealing sensitive information.
Always stay alert, report suspicious activities and educate yourself about evolving fraud techniques. Better be safe than sorry!
If you have been scammed online, immediately contact your bank, report the scam to the authorities like the National Cyber Crime Helpline at 1930 or the National Cyber Crime Reporting Portal (https://cybercrime.gov.in/)and document everything related to the scam.
FAQs
Q1) What should I do if I accidentally share my OTP with a scammer?
If you share your OTP with a scammer, contact your bank immediately and report the issue.
Q2. Are OTP scams only limited to banking transactions?
No, OTP scams can target various services. It can also happen on your social media account, e-wallets, online shopping platforms and even government portals.
This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
