Home   »   Government, SBI Cards, and Telcos Collaborate...

Government, SBI Cards, and Telcos Collaborate to Combat OTP Frauds

The Ministry of Home Affairs has joined forces with SBI Cards and select telecom operators to address the rising issue of one-time password (OTP) frauds. In light of increasing phishing attacks targeting bank customers, a solution is being developed to alert individuals about potential OTP thefts.

Testing Geolocation Tracking Solution

Under this initiative, the government is currently testing a geolocation tracking solution in partnership with banks. This technology aims to track both the registered address and the delivery location of OTPs. If a significant difference is detected between the two locations, customers will receive alerts warning them of possible phishing attempts.

Enhancing Security Measures

Recognizing the limitations of the Reserve Bank of India’s (RBI) proposed additional authentication factor for digital payment transactions, efforts are being made to bolster security measures. In cases where OTP delivery locations raise suspicions, measures will be taken to either issue alerts or block the OTP altogether.

Utilizing Telco Partnerships

The collaboration with telecom operators is crucial in locating customers’ devices and SIM cards during OTP delivery. By analyzing discrepancies between the customer’s actual location and the OTP delivery location, potential fraudulent activities can be flagged, such as OTPs being routed to unfamiliar locations.

RBI’s Call for Vigilance

RBI Governor Shaktikanta Das has previously emphasized the importance of cybersecurity vigilance, particularly in the face of evolving threats posed by technologies like artificial intelligence (AI). Financial institutions are urged to prioritize customer information protection and implement robust monitoring systems to mitigate risks effectively.

Government, SBI Cards, and Telcos Collaborate to Combat OTP Frauds_4.1