The initiatives like Digital India and Demonetisation have given boost to digital payments in India.Naturally, the comfort level of OTP related transactions has increased among people and also OTP fraud.With this, the work of fraudsters has become very easy.
Let’s see how OTP Fraud happens with a new technique.
OTP stands for One Time Password. OTP frauds are rising.Crores of rupees are getting lost whose chances of recovery are very bleak. The modus operandi of such frauds are majorly of two types.First of all, people receive a fake bank call saying that a fraudulent activity is detected with your account.To secure the account, all the related information has to be confirmed. One can’t identify whether the call is fake or real.They create a sense of urgency with the way they talk as a result people share their name, card number, CVV expiry date and OTP in hurry and think that the account is secured now.On the contrary, the fraudster takes peoples’ money while they witness everything live.By the time, people realise it and report it in the bank, the money would have been long gone.
Modus operandi or pattern of OTP Fraud
Now a days fraudsters do not ask for OTP directly. First of all, you would receive a fake bank sms alert saying that your credit/debit card has expired which has to replaced.Generally, any bank sms would not have a sender number. If you check it’s send you’ll see a text.The fake alert would also have no number similar to the real one.One can’t differentiate between the fake one and the real one with its pattern.Within 1-2 minutes, you’ll receive a fake call from the bank saying that you need to confirm all the information to complete the process.They won’t ask you any OTP.They say that you would receive an SMS after the call.There would be a link what you will have to click to complete the card replacement process.Now people think that the OTP and PIN is not shared so the account is safe.Then the money gets debited from the account.
How this OTP fraud happens without getting OTP ?
What happens is that when you click on the link received in the SMS, a malware gets installed which forwards all the SMS which get delivered to the mobile to the fraudster.Now, the fraudster has all the information related to your card. With the SMS forwards he steals the OTP and takes all your money.
How to save from OTP fraud
To save yourself from such frauds, understand that no bank call you for card replacement.If at all you receive a call from any bank, you will not be asked to confirm any card details.If you receive such calls, disconnect them immediately.Don’t click on any unknown link unless you are sure. Install an antivirus in your mobile. So many free and paid versions are available. In case you click on any unknown links, you’ll be safe from malware attacks.
Complaint against OTP fraud
Unfortunately, if you become victim to OTP frauds you need to report it to your bank first.
According to the RBI guidelines, there are different liability criteria depending on the category of fraud transaction.
OTP fraud happens due to the negligence of the victim, it falls under limited liability criteria.
The loss incurred until the fraud was reported to the bank has to be born by the victim.Any loss happens after the reporting, the reimbursement would be made within 10 working days.Any bank should resolve your complaint within 90 days. In case it doesn’t happen, you can complain online to RBI Ombudsmen.
Who is a Banking Ombudsman?
The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services covered under the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017).
Approach to Cyber cell
After reporting to the bank, you can report it in the nearest cyber cell.If there is no cyber cell in you vicinity you can file an FIR in any local police station.Cyber crimes fall under global jurisdiction so they can be reported irrespective of crime location.
If your complaint doesn’t get accepted in the police station, you can approach the Commissioner of Police or the Judicial Magistrate of the city.
Alternatively, you can report it online through the National Cyber Crime Reporting Portal.
Chance of getting money back
Generally, once the money gets debited either it gets used for online shopping or gets transferred to different bank accounts.In some cases, it even gets transferred to foreign accounts.Even if the criminal gets caught, there are bleak chances of recovering the lost money.To protect yourself from such frauds, follow all the precautions.
Share this article as much as possible so that the awareness gets created and everyone can be safe.