Oct 10, 2023
While making payments digitally, you usually need to authenticate your transaction and verify your identity using an OPT. OTPs act as an extra layer of security over your PIN or password. If you enter the wrong OTP, the payment will fail, and the transaction will be blocked.
Despite OTPs, fraudsters have been finding ways to scam people. You must stay aware of such scams and stay cautious in your financial conduct. To know about the latest scams, their prevention and what to do if you ever become a victim, you can make use of HDFC Bank Vigil Aunty. She will guide you through the nuances of digital safety and how to ensure maximum security for your finances.
What is an unauthorised OTP, and why is it risky?
You are supposed to receive an OTP only when you have initiated a process that requires authentication. If you happen to receive an OTP which you have not requested, it classifies as an unauthorised OTP.
Receiving an unauthorised OTP means that someone is trying to get unauthorised access to your account or conduct a fraudulent transaction. Either way, it is a cause for worry and should not be ignored. An unauthorised OTP should always strike as a red flag to prevent your account from being compromised by a scammer.
Why should you report receiving an unauthorised OTP?
Reporting such incidents can potentially eliminate or reduce the amount of loss that you may incur. The following are some reasons for reporting unauthorised OTPs immediately:
- Prevent unauthorised access: Receiving an OTP you have not asked for means someone else is trying to access your account and money. If you report promptly to your bank, you can potentially stop the scammer from gaining access to your account.
- Limit the loss: Your prompt report to the bank of receiving an unauthorised OTP can make the bank take quick action to safeguard your account against any financial fraud. This will help you limit the financial loss suffered, even if the scammers are somehow able to access your account.
- Legal protection: By reporting the unauthorised OTP, you might be able to get some legal protection against a fraudulent transaction. You can file a complaint with the authorities and potentially recover any financial loss arising out of the fraud.
- Credit score: Your credit score is crucial for securing loans and better interest rates. By ignoring an unauthorised OTP, you are taking the risk of fraudsters getting loans in your name and negatively impacting your credit score. By reporting the unauthorised OTP to the bank, you can prevent any credit disbursal to the scammers.
- Avoiding further attempts: If you report receiving an unauthorised OTP to the bank and authorities, then it will trigger an investigation to find the scammers. This might help identify the criminals and prevent any future attempts against your account by them.
How to prevent financial fraud
Prevention is better than cure. You must take measures to increase the safety of your account and prevent financial fraud from occurring. The following are some tips to prevent such fraud:
- Review your statements: You should make it a habit to periodically review your bank statements to check for any unauthorised transactions. This will help you learn if any scammer has already gotten access to your account and is now slowly making unauthorised transactions.
If you encounter any transaction you did not make, report it to the authorities immediately. - Secure using two-factor authentication: It is always advisable to use two-factor authentication (2FA) to protect your account. 2FA adds an additional layer of security over your PIN to protect your account from any further financial fraud.
- Never share your OTP: You must remember that no bank representative or authority can ask you to share your OTP. Always keep it confidential, and if asked, please report the matter immediately to the bank and authorities.
- Communicate with the bank: You must keep your contact details updated with the bank and have the bank’s contact details handy. This will allow you to be aware of and report any suspicious activity related to your account.
- Set alerts for transactions: You can always sign up to get transaction alerts for your bank account. This will notify you when there is any transaction from your account. By being aware, you can report the matter immediately to your account and reduce the risk of financial fraud.
- Don't give out personal information: You should always stay cautious while sharing your personal information. Whenever you are asked to provide your personal information, always try to verify the requestor's identity.
Scammers also use phishing tactics to impersonate official bank representatives, trying to assist you with different banking processes. Scammers can also send you e-mails with too-good-to-be-true offers that can contain a fake URL.
If you end up providing your details to scammers, then they may get access to your account, which can result in financial losses.
If you are ever in doubt about banking fraud or ways to ensure the security of your finances, HDFC Bank Vigil Aunty is always there to help!
Join Vigil Army, where Vigil Aunty will decode various frauds and give people a heads-up on the dos and don’ts of combating frauds online. To join the Vigil Army, send ‘Hi’ to her via WhatsApp number 7290030000.
Disclaimer: The appearance of Vigil Aunty's bindi has been refreshed with a change in color from red to blue for a distinctive look.
