hometechnology NewsOTP frauds increases three times post pandemic, continues to be a common method to scam people
OTP frauds increases three times post pandemic, continues to be a common method to scam people
In 2019, a total of 549 cases of OTP fraud were reported across India. However, during the Covid-19 pandemic in 2020, the number surged to 1,093 cases, and in 2021, it skyrocketed to 2,028 cases, representing a threefold increase. These alarming figures, according to experts, are merely the surface of a much larger problem.
Mangesh Malap, a 34-year-old electrician residing in Virar, located approximately 70 kilometers away from Mumbai, leads a diligent life. Despite the challenges he faces, Mangesh maintains a disciplined routine. Rising promptly at 4 am each day, he embarks on a two-hour journey, involving multiple train transfers, to reach his workplace in Mumbai's Shivdi area before 8 am.
Devoting twelve arduous hours to his job, Mangesh puts forth immense effort to earn a meager monthly income of Rs 20,000, which amounts to around Rs 650 per day. Unfortunately, the fruits of his labor were swiftly seized by cyber fraudsters, who managed to scam him out of Rs 46,500 within a mere five minutes. This amount exceeds Mangesh's hard-earned salary for two entire month.
In 2019, Mangesh received a call from someone claiming to be from his bank, where he holds an account. The caller informed Mangesh that the bank was reaching out to customers to update their debit cards to the new chip-based ones.
Mangesh shared his experience with CNBC TV-18, stating, "The person who called me said that my debit card will stop working, my account will be suspended and I won't be able to make any transactions. He said that he will update my debit card and account from his end. He asked for my ATM card details and the OTP I received. The moment I shared my OTP I figured it was a scam."
"I rushed to my bank. On my way I received a message from my bank stating Rs 46,500 were debited from my account. I went to the bank, I went to the cops, I went to the cyber cell, but all in vain. After running from pillar to post for few days, I lost all hope. I never saw my money again," he added.
Rs 46,500 is a huge amount for Mangesh. He had already burned through all his savings in the treatment of his older brother who was suffering from cancer. After his brother's death in 2017, Mangesh started saving money again for a rainy day. The frauds left only Rs 250 in his account.
This method of conning people is extremely common. The frauds contact people posing as employees of a bank, electricity company, or any other crucial service provider. They ask for key personal information in the guise of updating their account or updating their KYC information, saying noncompliance will result in the víctim's accounts getting suspended.
The fraudsters then initiate a transaction, and ask the victims to share their OTP. By the time the victim realises that the person on the call is an imposter, large chunks of money have been withdrawn from their accounts.
Mangesh is not alone. In 2019, 549 cases of OTP fraud were reported pan India. During Covid-19 pandemic, in 2020, the number increased to 1,093 and in 2021, it increased by three folds and shot up to 2,028 cases pan India. Experts say this is not even the tip of the iceberg.
Sanjay Shintre, SP, Maharashtra police Cyber Cell told CNBC TV-18 that, "Most of these cases go unreported. Considering our population, this number is just a drop in the ocean. Very few people come forward and report these frauds."
Experts add that a lot of cases are tough to identify, because the frauds often customise their stories and modus operandi to their intended victim, going off stolen, or purchased data — while some say they're calling about expiry of debit cards, some claim they're trying to update Know Your Customer (KYC) details to keep phone numbers active, and others claim they are calling to offer a last chance to keep the electricity supply running.
Shashank Shekhar, Cyber Security expert told CNBC TV-18 that, "The frauds get access to huge database, which is the backbone for their con. They categorise data based on search engines or service portals and tailor their script and modus operandi according to the data they get."
Financial institutions and the authorities have been on overdrive to increase awareness of such crimes among citizens, saying this is the best way to prevent such frauds. They say any request for personal data, debit or credit card PINs, or OTPs should immediately set off red flags, and be reported.
They also urge that any online ransactions only be carried out through verified, secure portals, and no sensitive information or documents should be uploaded to unknown or untrusted portals.
Other advice includes: don't answer video calls from unknown numbers, and don't fall for attractive offers — because if something sounds too good to be true, it probably is.
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