Bank OTP frauds on the rise: Here’s what govt is doing to tackle it

The Ministry of Home Affairs (MHA), SBI Cards and Payment Services Ltd (SBI Card), and telecom operators have joined forces to develop an innovative solution to alert users about stolen one-time passwords (OTPs), aiming to combat the rising threat of cyber fraud and phishing attacks in the banking sector, reported The Economic Times (ET).

Enhanced OTP security measures

Sources familiar with the matter told ET that the government is currently testing a system that will enable banks to track a customer’s registered address and geolocation to ensure OTPs are delivered securely. If there’s a discrepancy between the two locations, the customer will be notified of a potential phishing attack.