When an OTP arrives on their phone, many people simply glance at the code visible in the notification without reading the full message. This haste can sometimes lead to falling victim to online fraud. In light of this, the Telecom Regulatory Authority of India (TRAI) is preparing to revise the regulations concerning OTP-related messages.

The objective of this initiative is to help users better understand information related to OTPs, enabling them to distinguish between legitimate messages and fraudulent ones. However, specific details regarding the exact changes to the system and their implementation timeline will depend on the final regulations.

How will the OTP appear on your phone?

Currently, when an OTP arrives, the code is often visible directly in the notification bar or on the lock screen. If someone happens to be standing nearby and glances at your screen, they could easily see the code. Under the proposed changes, instead of the OTP appearing directly in a notification or on the lock screen, users might need to open their messaging app to view it. The code would only be accessible by opening the message itself, making it much harder for others to see your OTP by simply looking at your screen.

Additionally, TRAI is considering standardizing the way OTPs are sent. This could involve establishing a fixed format for messages originating from banks, e-commerce companies, and other digital platforms.

This format would clearly state the purpose for which the OTP has been issued—for instance, whether it is for logging into an account, making a payment, or another specific action. The message might also include the name of the company and the validity period of the OTP.

Why is this change necessary?

Cases of online fraud are steadily rising across the country. According to data from the National Cyber ​​Crime Reporting Portal, approximately 2.62 lakh complaints related to online fraud were registered in 2021. By 2025, this figure had climbed to over 24.02 lakh. The amount of money lost by people to fraud has also risen sharply. In 2021, this figure stood at approximately ₹551 crore, which has surged to ₹22,495 crore by 2025.

It should be noted that these figures encompass all types of online fraud, not just OTP-related scams. Fraudsters often call individuals, posing as bank employees or company officials. Under some pretext, they ask for an OTP, and people—without reading the actual message—disclose the code. Once this happens, funds can be siphoned off from their bank accounts.

Will this new system put an end to such fraud?

Changing the way OTPs are displayed and how messages are read may help people stay more vigilant. However, this change alone will not completely eliminate online fraud. Scammers may devise new tactics and target individuals through platforms like WhatsApp or Telegram.

Therefore, whenever you receive an OTP, read the entire message to understand its purpose. If you receive an OTP from your bank despite not having initiated any payment, do not share it with anyone, and check your account status.

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