Here are the reasons why One Time Passwords are not secure anymore against Online Banking Fraud

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In this era of digitalization, everyone is using internet banking and is well acquainted with receiving an OTP (one-time password) via SMS from banks to mobile phone number registered with the concerned bank branch every time when you transfers or withdraws money from your account. Since OTPs are considered secure, more reliable and deterrent against fraudsters who are trying to steal money from one’s banking account. Unfortunately, OTPs do not guarantee 100% security anymore. As there have been noted a large number of cases in which criminals defrauded customers into receiving OTP through using numerous things given below:

  • Criminals and fraudsters get access over the smartphone of the customers by hacking the same and steal one-time password for withdrawal of money.
  • Another trick which criminals are using to breach the OTP deterrent by visiting your bank branch with fake identity card of the victim and requesting your bank to change the registered mobile number linked to your account. The criminals just impersonate you and ask the bank to change mobile number and after which received OTP on change mobile numbers. A similar incident took place where criminals used to duped a customer and withdrew Rs.11,00,000 by using the same trick.

Similarly, by impersonating the identity of a person or using fake identity cards, the criminals get issued new sim card through mobile phone operator and get the original sim. They used the new sim card to generate OTP for transfer or withdrawal of money from the account of the customers.

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