Amid the rising incidents of cyber-attacks and digital frauds in India, the Ministry of Home Affairs, SBI Cards and Payment Services Ltd. (SBI Card), and telecom companies are collaborating to develop a solution aimed at alerting users about stolen one-time passwords (OTPs). This collaborative effort is part of a broader strategy to address the growing threat of cyber fraud and phishing attacks within the banking sector.
According to sources cited in the report, the government is currently piloting a system that allows banks to monitor both the registered address and geolocation of a customer, along with the delivery location of an OTP. Any disparity between these locations would trigger an alert for the customer, signalling a potential phishing attempt.
“The solution is still in the testing phase; it’s early days, but the concept is to track the geolocation of the customer using telecom data and ensure that the OTP reaches the intended area,” shared a senior bank official with ET on the condition of anonymity.
Initially, the Reserve Bank of India (RBI) recommended an additional layer of authentication for digital payment transactions primarily to combat fraud. However, cybercriminals have refined their techniques to either trick unsuspecting bank customers into revealing OTPs or redirect OTPs to their own devices using illicit methods. Consequently, the effectiveness of the second authentication factor in thwarting cybercrimes has waned.
Government data indicates that the registry received 1.12 million complaints, amounting to Rs 7,488 crore in fraudulent transfers in 2023.
, and telecom companies are collaborating to develop a solution aimed at alerting users about stolen one-time passwords (OTPs). This collaborative effort is part of a broader strategy to address the growing threat of cyber fraud and phishing attacks within the banking sector.){kind=link}