Whether ordering food in just a few clicks, paying bills while sipping your morning tea, or buying the dress you were eyeing on Amazon, online transactions have made our lives more convenient than ever.
However, with this convenience comes a risk. While one-time passwords (OTPs) provide an extra layer of security for your online transactions, scammers have found ways to exploit this system too.
What is the OTP scam?
OTP is a unique code sent to our mobile phones or email addresses to authenticate various transactions, like logging into accounts or making payments. Fraudsters capitalise on this security feature by tricking individuals into revealing these OTPs.
Let’s see how it works.
Cybercriminals somehow obtain an individual’s personal information, such as banking details or a mobile number. They call him impersonating legitimate entities such as banks, e-commerce platforms, logistics, or service providers. Experts in creating a facade that appears genuine, these scammers ask you to share the OTP. Once they receive the OTP, they carry out unauthorised transactions, like withdrawing money from the bank account.
What types of scenarios indicate an OTP scam?
Scenarios for OTP scams can vary but often share common themes. For instance, you might receive a text message urging you to share the OTP you just received, claiming to reactivate your account or verify a payment. Sounds convincing, right?
These scammers often prey on our curiosity or urgency. Here are some scenarios:
- Bogus bank calls: You might receive a call supposedly from your bank. The caller, impersonating a bank representative, will alarm you about suspicious activities in your bank account. They may claim that sharing your OTP is essential to stop that transaction and protect your funds.
- Fake prize notifications: Another prevalent tactic involves receiving messages or calls proclaiming that you’ve won a lottery, prize, or very lucrative offer. To redeem this supposed reward, the scammers insist on obtaining your OTP.
- Misdirected OTP: Scammers may contact you, claiming that they’ve mistakenly entered your mobile number for their transaction and that the OTP meant for their transaction has been sent to you. They will then request that you share this code with them.
It’s not only our phones getting smarter; these scammers are getting more clever with their tactics. They may also ask you for OTPs to get an interest-free loan, receive your income tax refund, or increase your credit card limit.
How do we identify the scam?
The key lies in scepticism and vigilance.
Pause and think before acting on any such requests. Legitimate entities never ask for your OTPs. It’s a red flag, signalling a potential scam. Ask yourself:
1. Did I initiate this action?
2. Is the request coming from a trusted source?
3. Is there any urgency or pressure in the message?
Moreover, take a closer look at the message or call. Notice any spelling errors or unusual language? Trust your instincts; if something feels off, it probably is.
How do we safeguard ourselves and our family?
As it goes, forewarned is forearmed. Here are tips to educate yourself and your loved ones:
1. Protect your OTPs: This one never gets old. Never share your OTP with anyone. Legitimate companies, banks, or government agencies won’t ask for these codes. They are like a secret password for your transaction; keep it to yourself.
2. Stay alert: Stay cautious and question anything suspicious. Train yourself and your family to have a healthy dose of doubt when dealing with requests for personal information.
3. Verify before trusting: Before sharing any personal information or OTPs, take a moment to verify the source. Contact the official website or the company directly using trusted contact details. Don’t rush; taking that extra step can save you from potential fraud.
4. Mindful clicking: Be extremely careful of random links, emails, or messages promising irresistible offers or urgent financial alerts. Clicking on unknown links might invite trouble in the form of malware or phishing attacks.
5. Secure network transactions: Conduct financial transactions or share sensitive information only through secured networks. Scammers may have tapped public Wi-Fi networks, and using these for such activities might expose your data.
6. Monitor and act: Keep a close eye on your account activities. Regularly check your bank statements and monitor any unexpected transactions. If you notice anything fishy, report it to your bank immediately.
Prevention is Key!
Being cautious and informed is your best defence against OTP scams. When in doubt, take a step back, verify, and only then proceed. Stay vigilant and help protect yourself and your loved ones from fraudulent schemes.
To protect your online security and digital life further, consider the Personal Cyber Risk Policy from Future Generali! Shield yourself against various online threats – from phishing and cyberbullying to malware attacks and identity theft.
