The Reserve Bank of India (RBI) has taken a few measures to help us safeguard our online finances. They have implemented two-factor authentication and One-Time Passwords (OTPs) for most online transactions. However, many people still fall prey to rampant OTP and other scams.

Let’s see what happened to Priya.

Priya, a working professional, recently applied for a personal loan with a reputed lender. She completed the application process and was waiting for the disbursal. In the middle of her work day, she received a call from somebody claiming to be a representative from the lending company. The caller told her they needed an OTP to complete the disbursal. Priya provided the caller with the OTP and continued with her day. She later received an e-mail from the lending company stating the loan amount got credited to her account. However, Priya also received an SMS informing her the entire loan amount got debited from her account. Priya did not verify the caller and provided the OTP to a scammer who withdrew the funds from her account.

In this highly digital world, let’s make it your own responsibility to avoid these scams and protect yourself as you apply for loans and make online payments.

How to Protect Your Finances from Scammers

Avoid Unsolicited Calls

Many scammers collect your date of birth, e-mail address, and phone number from online application forms or social media accounts. These details are used to pose as somebody from your lending company. They call saying they have to update the KYC database and ask you to provide a few details. If you agree, they may ask you to download an app that gives them access to your device. They will keep you engaged on the call and view your One-Time Password (OTP) to transfer money from your account. People often don’t realise what has happened until it’s too late. Avoid sharing sensitive information, unless you’re absolutely sure of the lender

Keep Your Private Information Confidential

Avoid sharing debit and credit card PINs and even banking OTPs with your loved ones. You never know when somebody else could get these details and use them to gain access to your financials. Never write down your PIN or share your OTP, especially over phone calls or SMS messages. Instead, complete all transactions yourself to prevent others from accessing your confidential details.

Avoid Suspicious Lending Apps

It has been seen that once you install these illegal applications, they request access to your personal data such as contact list, photo gallery, and camera. So, always avoid applications that you feel can compromise the safety and privacy of your personal data. If you are doubtful about the authenticity of any loan app, always go to a known bank or financial company to secure a loan.

Update Your Contact Details Regularly

Ensure you provide your lender with your updated contact details. Some people forget to change their number or e-mail address, making it easy for scammers to take advantage. Updating your phone number allows the lender to send you OTPs and updates about people accessing your account. Some banks send an SMS whenever you log into your internet or mobile banking account. If you have not accessed the account, you can immediately call the bank to block transactions and avoid losing money. If you don’t update your details, you could miss such crucial communication and not take action until it’s too late.

Always Use Secure Networks

As far as possible, avoid using unsecured networks to complete transactions. Never log into your financial accounts from public or work networks where other people can access your private and confidential details. Whenever you visit a website to make a transaction, ensure the website is secure. Look for the suffix https instead of http or a shut lock to the left of your URL. Ensuring you only transact on secure websites helps you safeguard your financial details and avoid OTP scams.

Monitor Your Account Regularly

Some scammers gain access to your login and password details and make only small transactions first. Take the time to monitor your account and look through all the credits and debits. Flag any transactions you cannot recall, contact your bank, and change your password.

OTP fraud has become a growing concern in India. You can follow these steps to safeguard your details and finances and avoid getting scammed like Priya. Always beware of unverified links, and remember that banks and lending companies will never ask for your password or OTP. When it comes to looking after your finances, prevention is better than cure.

At HDB, we take your online security seriously. Our customer care executives never ask for OTPs or passwords. If anybody claiming to be from HDB asks for these details, please report the same. Safeguarding your finances is our primary concern. Stay tuned to this section for more such tips and guidelines.