Digital transactions have become an integral part of our lives. From utility bills to grocery shopping and even payments to domestic help, digital modes of payment are here to stay. But with this comes the risk of scams. Fraudsters across the virtual world are coming up with multiple ways of tricking unsuspecting individuals into giving away sensitive information and duping them of their hard-earned money. But worry not, DMI Finance will help you understand how these scams work and how you can safeguard yourself against them.
OTP Scams
Among the several scams that are doing the rounds, OTP scams have become increasingly common.
Let’s first try to understand what an OTP is.
What is an OTP?
One Time Password – in short known as OTP – is generated to authenticate online transactions. OTP adds another layer of security and helps customers to reduce fraudulent transactions.
There are two-three types of OTP scams:
WhatsApp OTP scam
WhatsApp offers users the option of entering an OTP to authenticate their account for safety reasons. Scamsters have taken advantage of this security feature to dupe people. The modus operandi involves the scamster acting as a relative/friend with an emergency requirement. They claim to have sent an OTP to the victim’s number by mistake. Once the victim shares the OTP, the fraudster uses it to lock the user out of their WhatsApp number and further uses the same WhatsApp account for scamming others.
Debit/Credit Card OTP scam
Individuals posing as bank or credit card company executives call debit/credit cardholders stating that they are offering a free upgrade to the cardholder. After making the cardholder share sensitive information such as the card’s expiry date, CVV number, etc., the so-called executive initiates a transaction and asks the cardholder to share the OTP received on the registered mobile number to complete the upgrade. In certain cases, the fake executive may also send an SMS to the cardholder’s number that contains malware. Once the cardholder clicks on this SMS or the link in the SMS, the malware redirects all subsequent OTPs to the fraudster’s number. Since the scamster already has access to the cardholder’s card details, they are able to easily steal considerable amounts of money.
In recent times, during the period when banks were extending moratoriums to accountholders and credit cardholders, the same ploy was used to fool innocent victims under the pretext of offering them relief as part of the moratorium.
Payment Gateway/Digital Wallet OTP scam
In another popular OTP scam, the scamster calls the individual and pretends to be interested in the product or service being offered by small business providers and agrees to pay a certain amount immediately as confirmation. The trickster then goes on to ask for details of the business provider’s payment gateway account/digital wallet details followed by the OTP. Once the fraudster has access to your account, they may initiate multiple transactions and clean you out!
How can you safeguard yourself from OTP scams?
1. Do not share your OTP with anyone under any circumstances
This is the most important of all precautions. Remember that unless you initiate a request, no platform including payment gateways, WhatsApp, and online banking sites will send you an OTP. So the minute someone tells you that they had an OTP sent to you by mistake or that they need an OTP to make a payment to you, stop right there.
2. Steer clear of fake helplines
Make sure that when you reach out to your bank/credit card/digital wallet company, do so only on their official helpline numbers. Even if you receive a call from someone claiming to be an official, if you find the number suspicious, simply do not proceed ahead.
3. Beware of suspicious apps
Several apps appear to be useful but actually serve as data-stealing tools for hackers and fraudsters. Do not allow permission to access your phone’s various other apps and folders unless absolutely essential. In case you are doubtful about what the app has access to despite limited permissions, do not hesitate to delete it.
Happy transacting!
Click here to know more about WhatsApp OTP scams:
https://www.dmifinance.in/blog-details.html?know-how-and-when-to-say-no-don-t-share-your-otp-with-anyone
