OTP stands for One Time Password, and as the name suggests, it could be used only once. OTP is used as a shield of defense against financial frauds. Before accepting your payment, the bank or the payment gateway sends an OTP to the registered mobile number.
Unless a person enters the OTP that was generated by the automated banking system, the payment transaction will not be completed.
At present, almost all the Indian banks and payment gateways are using the OTP method to verify the user and transaction both. However, there are a few payment gateways that also ask for 3D secure PIN additionally.
Many a times, you may get a call impersonating your bank’s employee asking for details and them eventually the OTP. By sharing that you will be putting yourself in a tough spot. As it is nothing but a fraud.
How is OTP misused?
OTP has become an instant way to make money for the fraudsters. Thousands of people fall prey to this financial fraud. Even though the banks and the payment gateways have constantly tried to warn people about these frauds, there are still many people who become victims of this financial fraud. This could be due to lack of awareness amongst the citizens. You must know that no one can misuse an OTP until you share it.
It is generated using encrypted data using the banker’s server. No fraudster can get access to your credit card unless they have CVV pin and the OTP. A single OTP is valid only for 10 minutes and after that it becomes useless.
How do I safeguard myself?
Well, here you can easily save yourself from these frauds by not giving your banking details to anyone over the phone. No Indian bank or a payment gateway will ever give you a call asking your OTP.
These fraudsters keep changing their approach in order to get details from the people. Do not give any detail no matter what. Even if you feel that the transaction concerns you, make sure you physically enter this on the web interface yourself.
Be patient, do not take hasty decisions. These fraudsters take advantage of the fact that you do not have proper information or are in a hurry. You can always redo any process if it was really of your concern.
Remember, haste makes waste!
If you feel something is not right, you can report the number immediately. Make sure you contact, the relationship manager or the customer care of your service provider to know the reality behind the OTP calls.
With the growing number of smartphone buyers, digital payments have become a common phenomenon. And with this, falling prey to fraudsters has even become common.
Be mindful before you share any sensitive financial details over the phone call.