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This Is How Many Bangaloreans Lost Money To OTP Fraud

IamCheated.com Research Team | January 17, 2019  4:01:pm

Cybercrime in Karnataka has increased 9-fold in just six years. In the year 2013, there were only 612 cybercrime complaints in the state, but by the end of 2018, it had increased to 5,700 complaints. As cybercrime is increasing in Karnataka, the tech city Bengaluru has become the hub of cybercrime. Recently, a new kind of OTP fraud had come to light in Bengaluru, where many IT employees have fallen victim and lost Lakhs of rupees. Even though many people have lost their money to this fraud, not a single accused has been arrested till now.

The amount lost to this fraud ranges from Rs 5,000 to some lakhs. In this blog, we will discuss everything you need to know on OTP fraud.

See Also: How to prevent Cybercrime?

This Is How Many Bangaloreans Lost Money To OTP Fraud:

1. As you know, One Time Password (OTP) is very important to carry out an online transaction. Without OTP you cannot complete the transaction. This new scam is all about stealing OTP's to carry out fraudulent transactions.

2. Fraudsters steal OTP from victims either by installing malware on their phone or by making phone calls, posing as bank employees.

3. To carry out this scam, fraudsters first call innocent people by posing as bank employees. They speak in such a way that there’s no suspicion raised.

4. By posing as bank employees, fraudsters tell victims that their debit card or credit card is going to expire and must be renewed as soon as possible to avoid getting it blocked.

5. To upgrade or renew the debit card, victims will be asked to provide debit or credit card number, CVV, and the expiry date of the existing card.

6. Believing this to be true, many people shared their existing card details to get the new card.

7.  Once all the details were shared by victims, fraudsters informed them saying, they would receive a message to confirm the card upgrade.

8. The SMS sent by fraudsters will have a link which victims will be asked to click to confirm the card upgrade.

9. Clicking on this link installs malware in the victim’s phone. This malware redirects all the SMSes to the fraudster’s phone. In some cases, to confirm a card upgrade, victims will be asked to resend the SMS.

10. Now, stealing money from the victim's bank account is very easy as fraudsters have all the requisite information like CVV, expiry date and card number. The OTP will be redirected to fraudster’s mobile through the malware, once it reaches the victim's phone. After OTP is received by fraudsters, they can easily empty the bank account of victims.

See Also: How People Get Cheated By OTP Fraud?

How to avoid this fraud?

1. Never give your card details or OTP to anyone over the phone. No banks will call customers asking card details. In case you receive such calls, kindly report them to the nearest police station.

2. Do not click on any link sent by unknown people. Sometimes clicking on an unknown link may lead to a compromise of sensitive data.

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