All You Need to Know About One-Time Password Scams

One-time passwords (OTPs) are a crucial security feature in our digital age as an extra layer of protection for online transactions and account logins. An OTP is a string of characters that is automatically generated to authenticate a user for a single login session. In some cases, an OTP is a replacement for traditional login information, and in others, it’s a manner for multifactor authentication. In any case, scammers are often trying to hijack these codes so they can steal sensitive info, money, or both.

Here’s what to know about one-time password scams and how to avoid them.

What is a One-time Password Scam?

One-time password (OTP) scams seek to trick individuals into sharing their OTPs, the same way scammers will try to trick people into sharing their traditional login info. Once they have obtained the OTP, the result is also the same, scammers then try to gain unauthorized access to accounts and steal whatever valuable information or money they can. Here are the various ways these scams go down:

• Phishing scams
  Here, cybercriminals send fake emails or text messages appearing to be from legitimate sources, such as credit unions or banks, online retailers, or social media platforms. These messages often contain urgent requests to verify your account or resolve an issue, prompting you to enter your OTP on a fraudulent website.
• Vishing (voice phishing)
  In this scam, scammers call victims and pretend to be from a reputable organization. They may claim there is suspicious activity on your account and request your OTP to secure it, all the while exploiting your trust and sudden sense of urgency.
• Man-in-the-middle attacks
  In this method, attackers intercept communications between you and a legitimate service provider. When you request an OTP, the attacker captures it and uses it to gain access to your account.

Whichever method is used to steal your OTP, the scammer will then use it to access your accounts. From there, they can potentially steal your money and any personal information contained in your account, possibly even stealing your identity.

Red Flags

As with any type of scam, there are warning signs that you should know and keep an eye out for. Learning and being aware of the signs of a scam is often your best protection from being taken advantage of. Avoid falling victim to a one-time password scam by watching out for these red flags:

• Unexpected requests
  Be cautious of unsolicited messages or calls asking for your OTP. Legitimate organizations typically won’t initiate contact with you to ask for your OTP unless you’re actively engaged in a transaction or login process. Be wary of anyone asking for your OTP or other login information if you did not initiate the contact.
• Urgency and threats
  Scammers often create a false sense of urgency, claiming that immediate action is required to prevent something bad from happening, like an account suspension or fraud. If you feel like you’re being pressured to divulge your information, cease contact immediately and call your institution’s official phone number directly.
• Unusual sender information
  Check the sender’s email address or phone number carefully. Scammers often use addresses or numbers that are slightly altered versions of legitimate ones. For example, when spoofing an email address, scammers will often switch the letter “O” to the number “0” and make changes with other similar-looking characters to try to avoid detection.
• Suspicious links
  It’s important to verify that links in any message are legitimate BEFORE clicking on them. To do so, hover over links in emails or messages to see and verify the actual URL before clicking. Scammers will disguise links to appear in the message that they are legitimate, but when you hover over the link, you can see that it’s a very different destination.
• Generic greetings and errors
  Scammers often use generic greetings like “Dear Customer” in their emails. These messages will also commonly have grammatical and spelling errors in them, another sign of fraudulence.

Protect Yourself

Staying safe from OTP scams requires vigilance and adopting best practices for online security. It’s important to learn and prepare yourself ahead of time so you can deal with potential scams when they come up. Protecting yourself starts with being informed! Here are some steps you can take:

• Never share your OTP
• If you get a request for your OTP, verify legitimacy by directly contacting the organization
• Use multi-factor authentication whenever possible
• Be wary of links in unsolicited emails or text messages
• Install security software

If You’ve Been Targeted

If you think you’ve been scammed or shared your OTP, take quick action.

First, change the passwords on all affected accounts, accounts they are connected to, and those that have similar login credentials. Next, inform the host organization of the account that it’s been compromised. They can help secure your account and guide you on additional steps. Monitor your accounts in the ensuing weeks and months, looking out for any unauthorized activity. Finally, file a report with your local consumer protection agency, the FTC, and the Internet Crime Complaint Center. You may also want to consider identity theft protection at this time if sensitive information was compromised.

One-time passwords are a great way to help keep your accounts and information secure. Whether being used as a replacement for or an addition to traditional login methods, OTPs provide an additional layer of security since they are always different for each login session. While these OTPs are not immune to fraud attacks, by following the tips and best practices in this article, you can keep your OTPs, your personal information, and your money safe!