OTP Scams

What are OTP scams or one time password scams?

OTP scams occur when unsuspecting individuals share one-time passwords with cybercriminals, who then exploit them to hack accounts, steal money and identities, or even swap SIMs. This article will explore the various techniques used in such scams.

Common methods used by OTP scammers

Phishing calls or SMS

Scammers often use deceptive messages such as "Your account has been hacked," "Your bank account will be frozen," or "Did you authorize this large transaction?" to create a sense of urgency and panic. They often pose as representatives of financial institutions, banks, or e-commerce platforms and manipulate individuals into sharing their one-time passwords (OTPs). After getting the OTP, scammers gain unauthorized access to the victim’s account which potentially leads to financial loss and data compromise. Such types of scams are very popular in Southeast Asia and the USA.

SIM swap through OTP

SIM swapping is becoming an increasingly serious problem, especially in India, Europe, Nigeria and the U.S. The most troubling part is that most victims don’t even realize they’ve been scammed until their phone suddenly stops working. Cyber criminals do so by gathering victim’s personal information from the dark web and by following their digital footprint. Then they talk to the mobile operators acting as the victim and try to convince them to activate the new SIM in their own device. Once they gain control of the victim’s phone number, they intercept OTPs and access financial accounts with ease and reset passwords.

In India, for example, scammers call victims pretending to be from a telecom company, offering a free 5G SIM upgrade. They then trick the victim into sharing an OTP, claiming it’s required to complete the upgrade. Once the OTP is provided, the original SIM gets deactivated, and the scammer takes full control of the victim’s phone.

Phishing websites

Cybercriminals create fake websites and login pages to deceive individuals into giving up their personal details. These links are either sent directly to individuals or left floating on the internet, waiting for a potential victim. They look very similar to the original website, fooling unsuspecting users. Upon entering their username and password, victims receive an OTP, which they believe is authentic, but instead, it grants the scammer access to their account. One of the significant risks associated with OTP sharing is that cyber scammers can use an individual's social media accounts to scam other people in their friend list by assuming their identity. Such scams have claimed many victims in India and the USA.

Malware attack

Installing unknown apps and software without verifying their authenticity or clicking on links that secretly download and install malicious applications in the background is a sure way to become a scam victim. Such software can intercept OTPs received via SMS, enabling scammers to bypass two-factor authentication. Many countries including Singapore, India, UK, USA and Australia have reported such cases.

Fraudulent customer support scams

Scammers often list fake customer support numbers on fraudulent websites. When unsuspecting victims call these numbers, the scammers trick them into sharing the OTPs they receive on their phones under the pretense of helping them ‘resolve the issue.’ By the time victims realize what has happened, it is already too late. Many people in South Africa, Australia, India, Nigeria, and the USA have fallen victim to such scams.

How people fall victims to an OTP scam

It’s hard to stay on guard all the time, but with the rising number of cyber crimes every day, it has become necessary. Let’s explore the situations in which people fall victim to these crimes.

Lack of awareness about OTP security - OTPs or one-time passwords should not be shared with anyone. No legit customer care executive or bank official would ask you for that. Apps like Truecaller can help identify scam callers, detect spoofed AI voices, and filter out fraudulent SMS senders.
Fear and urgency - It may seem difficult, but staying calm and composed is crucial if someone is pressuring you to share your OTP to "fix an issue." The more persistent they are, the higher the chances they are scammers. Don’t let urgency cloud your judgment. If in doubt, hang up immediately and reach out to the official customer support or relevant authorities—never share your OTP.
Not being careful with random links - If you don’t recognize the source, never click on random links. Scammers create fake websites that mimic legitimate banking or e-commerce portals, tricking you into entering your OTP. Falling for such traps can result in huge financial losses and identity theft. Always verify links before clicking and access official websites directly.

How Truecaller can help protect against OTP scams

One of the foolproof ways to protect yourself from fraudulent activities is to download the Truecaller app. It is your trusted AI-powered friend, a leading caller ID and spam-blocking app that identifies unknown numbers, blocks scammers, and verifies legitimate businesses. It can detect spoofed numbers and block phishing attempts, ultimately reducing the risk of OTP-related scams.

Best practices for OTP fraud prevention

Do not share your OTPs with anyone

Practice caution if someone is creating a high pressure situation and asking for OTP.

Immediately hangup and contact said authority through official channels

Do not click on the links received via SMS, WhatsApp, or emails from unknown sources

Install apps from official stores only or only trusted sources

Keep your operating system and security software updated to protect against vulnerabilities

Enable SIM lock

Steps to take if you've been a victim of OTP fraud

Change your account passwords if possible, and immediately contact your bank or the customer care of the affected official portals.
Log out of all active sessions
If there’s no network on your phone, contact your mobile operator, explain the situation, and request to block your SIM
Regularly check your bank statements for any signs of financial fraud

Whom to report to after a OTP scam?

If you've been a victim of an OTP scam, reach out to

Your local law enforcement agency.
Your bank to stop any transactions if possible
Download Truecaller for future safeguarding. It has an extensive community and also shares regular scam alerts to its app users. Also, report the number here so that the community is also safeguarded.