One-time passwords (OTPs) are a crucial security feature in our digital age by offering an extra layer of protection for online transactions and account logins. Unfortunately, though, scammers often try to hijack these codes for stealing sensitive information, money or both. 

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

What is a one-time password scam?

One-time password (OTP) scams are designed to trick individuals into sharing their OTPs, which are then used by scammers to gain unauthorized access to accounts. Here are the various ways these scams go down:

• Phishing scams. Here, cybercriminals send fake emails or text messages that appear 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 pretending to be from a reputable organization, such as a bank or government agency. They may claim there is suspicious activity on your account and request your OTP for securing your account, exploiting your trust and urgency.
• Man-in-the-middle attacks. In this method, attackers intercept communications between you and a legitimate service provider. When you request the OTP, an attacker captures it and uses it to gain access to your account.
• Social engineering. Scammers use psychological manipulation to trick you into revealing your OTP. They may impersonate friends, family or colleagues, convincing you that sharing the OTP is necessary for a legitimate purpose.

Whichever method is deployed in an attempt to steal your OTP, the scammer will then use it to access your accounts and possibly to steal your identity

Red flags

Avoid falling victim to a one-time password scam by watching out for these red flags:  

1. Unexpected requests. Be cautious of unsolicited messages or calls asking for your OTP. Legitimate organizations typically won’t ask for your OTP unless you’re actively engaged in a transaction or login process.
2. Urgency and threats. Scammers often create a sense of urgency, claiming that immediate action is required to prevent account suspension or fraud. For example, a text message allegedly sent from your financial institution may claim you have 10 seconds to input the one-time password to verify your account. This tactic can make you act without thinking.
3. Unusual sender information. Check the sender’s email address or phone number carefully. Often, scammers use addresses or numbers that are slightly altered versions of legitimate ones.
4. Suspicious links. Hover over links in emails or messages to see the actual URL before clicking. Be wary of links that don’t match the official website of the organization they’re purportedly from.
5. Generic greetings and language. Scammers often use generic greetings like “Dear Customer” when sending out their mass emails. Their missives also tend to have spelling or grammatical errors. Legitimate communications are usually more personalized, professional and proofread.

Protect yourself

Staying safe from OTP scams requires vigilance and adopting best practices for online security. Here are some steps you can take:

• Never share your OTP. Treat your OTP like your password — never share it with anyone, even if they claim to be from a trusted organization.
• Verify the source. If you receive a request for your OTP, verify the legitimacy of the request by contacting the organization directly using a known and trusted communication method.
• Use multi-factor authentication (MFA). Whenever possible, enable MFA on your accounts. MFA typically involves a combination of something you know (password) and something you have (OTP), providing an additional layer of security.
• Be wary of links. Avoid clicking on links in unsolicited emails or text messages. Instead, navigate to the organization’s official website directly through your browser.
• Install security software. Use antivirus and anti-malware software on your devices to help detect and prevent phishing and other cyber threats.
• Educate yourself and others. Stay informed about the latest scam tactics and share this knowledge with friends and family, especially those who may be less tech-savvy.

If you’ve been targeted

If you believe you’ve been scammed and/or have shared your OTP, take immediate action.

First, change the passwords on all affected accounts 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 to take. Monitor your accounts in the ensuing weeks and months, keeping a close eye on your financial statements and account activity for any unauthorized transactions. Finally, file a report with your local consumer protection agency, the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3).

You may also want to consider identity theft protection at this time if sensitive information was compromised. 

One-time password scams can be difficult to spot and wreak massive damage. Use this guide to learn about one-time password scams and how to prevent yourself from falling victim. 

Stay safe!