Airtel launches AI-based fraud alert to tackle OTP scams

As part of its efforts to address spam and fraud, Airtel has introduced an AI-based Fraud Alert system designed to provide real-time protection against One-Time Password (OTP)-related banking fraud.

Fraudsters often exploit the urgency associated with OTPs used for routine services, such as deliveries, to persuade customers to share banking transaction OTPs. This can result in unauthorised access to bank accounts.

Airtel’s system is designed to identify potentially risky situations and issue alerts to customers. When a banking OTP is detected during a call that may indicate suspicious activity, the network triggers a warning, advising the customer of the potential risks of sharing or consenting to the delivery of a banking OTP while still on the call. The aim is to provide customers with additional time to assess the situation and verify the legitimacy of the request.

Shashwat Sharma, Managing Director and Chief Executive Officer, Airtel India, said the company is working to enhance security across its network. He noted that while OTPs remain a key safeguard for digital transactions, they are increasingly targeted through social engineering tactics. He added that the new system operates at the network level, with the objective of detecting and intervening in suspected fraudulent activity in real time. According to the company, the system has undergone trials to assess its effectiveness.

Over the past two years, Airtel has introduced measures such as spam call alerts and malicious link blocking to reduce fraud on its network. However, fraud attempts involving impersonation and social engineering have continued.

The Fraud Alert solution is currently live in Haryana and is scheduled to be rolled out to all Airtel customers nationwide over the next two weeks.