Tips to Avoid an OTP Fraud

In the last few years, one-time passwords (OTPs) have emerged as a security measure to avoid banking thefts. An OTP is supposed to ensure that one’s money is safely transferred. It has become a time-bound security measure and has become more popular with the rise of digital transactions. But today, OTP has become a way for scammers to siphon money from people through fraud. 

What is an OTP Fraud? 

People who conduct an OTP fraud do so by impersonating a company. They make several calls through fraudulent and fake numbers. Then, they offer lucrative services or easy money to the people on the other end. They lure people by promising them cash prizes and the prospect of quick deposits into their accounts. Most people fall into this trap and give in to fraud. 

The scammers then ask them for their card details. It includes the card number, PIN, and OTP. Many people, who are unaware of such frauds, readily offer these details without a second thought. As soon as these scammers get the details they need, money is deducted from the bank accounts of the owners. Such unauthorized bank transfers are what we call fraud. 

Surprisingly, this is not the only way in which fraudsters carry out OTP theft. Another way for scammers to steal one’s private information is by using malware. They can get a person to install malware on their phone. They usually do so by pretending to address a customer’s grievance. This gives them access to the customer’s phone. They can then read the OTP messages, again compromising the owner’s bank account. 

Yet another way for scammers to extract non-OTP from customers is to offer fake promises. They also try to startle the customers with the negative consequences of not following their instructions. Often, people feel threatened and give in to the pressure. These are some of the common ways in which scammers extract OTP for fraud. 

Amid rising incidents of such fraud, one needs to stay vigilant.

Tips to Avoid Being a Victim of OTP Fraud

Here are some tips that can help you learn how to be safe from OTP fraud:

• If one receives a text message with an embedded link in it, one must not click on it. Unless they can verify the identity of the sender of that message, clicking on such a link might lead to falling prey to fraud.One must always check the identity of the sender of a text message. Every bank uses only one common number to send informational messages to customers. If one receives a message related to their bank from any other number, there is a high chance that it is a fraud.  
• One must not download any suspicious apps from Google Play or the App Store, even if the caller claims that it is needed for verification of some sort. No genuine bank ever asks one to download any app for solving grievances.  
• One must never disclose their OTP to anyone. This includes their financier and bank. No genuine bank ever asks for one’s OTP. An OTP is only meant to be used by the customer. Anyone else asking for it to solve a query is sure to be a scammer. 
• One must always keep a strict check on their text messages and emails. If any OTP is generated on their number without their knowledge because of a fraudulent transaction, they can detect it early.  
• If one wants to connect with their financial provider, they should always do so through an official channel. They must use only authorized customer care numbers and official email addresses. Even while communicating with their banks, they should never disclose sensitive information such as their card PIN or OTP.  
• One must be cautious of promises of earning easy money or cash prizes, especially when asked to deposit some money for the transaction to proceed. This is a common tactic used by scammers.  
• One must regularly check that they do not have any malicious apps installed on their phone. Such apps can collect sensitive data from your phone. 

What to Do If One is Scammed?

In the unfortunate event that one falls victim to an OTP fraud, one should reach out to their bank right away. One should request that their bank block their card as soon as possible. At the very least, this will ensure that the bank details are not compromised any further. Usually, banks provide dedicated contact numbers and email IDs to reach out to if you suspect fraud. Staying alert and informed is the best way to protect yourself from financial fraud.

By observing these and several other tips for fraud prevention, one can steer clear of scammers. In the present, when digital transactions are on the rise, it is important to stay safe. One must remember that the safety of their bank account is in their own hands. Once a phisher steals money from an account, it can hardly ever be recovered. 

Conclusion

Lately, OTP thefts and frauds have been on the rise. But by following a few basic steps, one can minimize the chances of being scammed. It is very important to stay updated and informed about the operations of digital devices and banking services.

For all such information, reach out to Piramal Finance. It serves as a one-stop shop for all financial information. Also, their blogs help in learning everything about financial services. Piramal Finance blogs might also give insights into any new patterns of phishing scams against which one must be careful.