Why you should never share your credit card OTP over the phone

In the nation’s rapidly evolving digital payment ecosystem, one simple rule remains essential: Never share your credit or debit card OTP with anyone over the phone or via text.

Financial institutions and banks continue to warn their customers about the rising risk of fraud. Cybercriminals now deploy increasingly sophisticated techniques. They aim to extract vital information, such as One-Time Passwords (OTPs) and CVVs, to execute unauthorised transactions in seconds.

How does an OTP fraud work?

Scammers often impersonate trusted figures. They might pretend to be bank representatives, delivery agents, telecom staff, or even RBI officials to gain a victim's trust. They also create a false sense of urgency. For instance, they may claim the card will be blocked if a pending clearance or debt payment is not made.

Fraudsters also extract personal details by citing false KYC requirements, claiming to complete documentation, or initiating a fake payment reversal. Once the victim shares the OTP, the fraudster completes the transaction instantly. Since the primary credit card holder never approved the transaction, this causes serious and immediate financial damage.

Key red flags to acknowledge and watch for:

• Calls asking you to ‘verify’ your credit card details, PIN or OTP.
• When the caller creates an emergency, forcing you to share critical information.
• Threats of account suspension or credit card cancellation.
• Promises of cashback, refunds or reward points
• Requests to install unknown apps for ‘remote assistance’

All such factors must be taken into consideration. No personal information, such as credit card numbers, CVVs, OTPs or images of the card, should ever be shared with anyone on the phone or through text messages.

Why sharing an OTP is extremely risky

Financial transactions are completed online by connecting various forms of data. Your OTP in this regard is the final security layer that authorises credit card payments. Do keep in mind that even if scammers already know your credit card number or CVV, which can often be obtained from phishing or data leaks, they cannot complete a transaction without the OTP.

The risks of sharing OTP information include:

1. Fraudulent transactions are executed within minutes, resulting in immediate financial loss.
2. Banking institutions can decline refund or recovery requests if the customer voluntarily shares the OTP.
3. The overall experience can be both financially difficult and psychologically draining.
4. Identity gets compromised, and scammers might reuse stolen credentials to target other accounts.
5. Legal action and questioning can follow, making the entire credit card-using experience unpleasant and cumbersome.

How to stay safe

• Never share OTPs, PINs, CVVs, passwords or UPI PINs with anyone. Banking institutions never ask for them.
• Verify calls by contacting the bank’s official customer-care number.
• Whenever you are faced with such a situation, remain calm and do not panic.
• Enable transaction alerts to monitor activity in real-time.
• Report suspicious calls immediately to your credit card issuing financial institution.

As digital payments continue to rise across the country, staying vigilant and safeguarding your OTP details is critical for protecting your financial identity.

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