*WHAT IS OTP FRAUD AND HOW TO PREVENT IT ? (24th June, 2025)

*OTP fraud (One-Time Password fraud) is a type of cybercrime where scammers trick or manipulate users into revealing their OTP (One-Time Password)—a temporary code used for verifying identity during financial transactions, login processes, or account changes.

🔍 How OTP Fraud Works :

1. Phishing or Social Engineering:

   • Scammers impersonate bank officials, customer service agents, or trusted institutions.

   • They convince the victim to share an OTP sent via SMS or email under false pretenses.

2. SIM Swap:

   • Fraudsters trick mobile providers into issuing a new SIM with your number.

   • Once they control your phone number, they receive all OTPs.

3. Malware or Spyware:

   • Malicious apps or links infect your device and silently forward OTPs to hackers.

4. Fake Login Pages:

   • Victims are lured to a fake website that looks like their bank or app.

   • They enter credentials, and the fraudster triggers an OTP request, which the victim then inputs, unknowingly handing it over.

   
   

🔒 How to Prevent OTP Fraud :

✅ For Individuals:

1. Never Share OTPs:

   • Treat OTPs like passwords. Legitimate companies will never ask for them over phone, SMS, or email.

2. Use Official Apps and Websites Only:

   • Always verify URLs and only download apps from official stores (Google Play / Apple App Store).

3. Enable App-Based Authentication:

   • Use authenticator apps (e.g., Google Authenticator, Authy) instead of SMS-based OTPs where possible.

4. Don’t Fall for Urgency:

   • Fraudsters often create panic (e.g., “Your account will be blocked”) to force you to act quickly. Stay calm and verify.

5. Secure Your Phone and SIM:

   • Set SIM lock PIN.

   • Avoid sharing personal information (like your phone number or mother's maiden name) publicly or with unknown callers.

6. Regularly Monitor Your Accounts:

   • Check transaction alerts.

   • Set up email and SMS notifications.

     
     

✅ For Businesses and Developers:

1. Use Multi-Factor Authentication (MFA):

   • Combine OTPs with other forms of authentication (biometrics, security questions, device ID).

2. Limit OTP Validity and Attempts:

   • OTPs should expire quickly (e.g., 60 seconds).

   • Allow limited retries before locking out.

3. Detect and Block Bots:

   • Use CAPTCHA and behavior analysis to prevent automated OTP harvesting.

4. Track IP and Device Anomalies:

   • Flag logins or transactions from new devices or suspicious geolocations.

5. Educate Users:

   • Regularly warn users never to share OTPs and provide examples of common fraud tactics.

     
     

⚠️ Remember:

If you ever suspect OTP fraud:

• Contact your bank or service provider immediately.

• Block or freeze your account/cards if necessary.

• Report the incident to your local cybercrime unit.

*VISUAL INFOGRAPH ABOUT ~ OTP (ONE TIME PASSWORD) FRAUD :

*OTP (One-Time Password) Scams Related Educational Video :

https://www.youtube.com/watch?v=UgmHkv7vnOY ;