How can a bank transaction happen without an OTP? Learn about a method of fraud other than SIM swapping, that can withdraw money from a bank account without an OTP.

(How bank transactions happen even without OTP)

OTP is considered the most important safeguard for bank account security. But what if you don't receive an OTP on your phone, yet a transaction still takes place from your bank account? In such a situation, it's not correct to blame only a SIM swap. Cybercriminals can also commit banking fraud through many other methods.

How can a transaction happen without OTP?

It's worth noting that SMS OTP isn't required for every online banking transaction. Many banks and payment services use different authentication systems based on risk. For example, payments can be completed using a pre-saved beneficiary, a trusted device, app-based approval, or a UPI PIN.

This means that if an attacker has access to your banking app or important information related to UPI, then he will not need an SMS OTP every time.

How is the method different from SIM Swap?

For your information, SIM swaps typically involve criminals attempting to obtain a new SIM card for your number through their mobile operator. This allows them to access SMS and calls received on your number.

But another threat is unauthorized access to your mobile or banking app account. If a malicious app is installed on your phone, your banking credentials are stolen, or someone gains access to your device, a criminal can perform certain transactions without intercepting the OTP.

OTP is not required in UPI fraud

UPI payments are the simplest example. Typical UPI transactions use a UPI PIN, not an SMS OTP. If a criminal somehow learns your UPI PIN and gains access to a UPI app or device, they could attempt to send money from your account.

For this reason, it's not enough to simply consider SMS OTPs secure. The security of your UPI PIN, phone screen lock, and banking apps is equally important.

Malware can also become a big threat

A suspicious or dangerous app on your phone can open the door to banking fraud. Some malware may attempt to read on-screen information or interact with other apps by obtaining accessibility permissions from the user.

If you have recently downloaded an APK from an unknown website or given permissions like Accessibility, SMS, Notification or Screen Overlay to any suspicious app, then be careful.

Don't ignore banking alerts

If you receive a transaction alert from your bank but haven't received an OTP, take it seriously. First, check your account on the bank's official app or website and temporarily block your card, UPI, or net banking if necessary. Instead of relying on a link or number provided in an SMS, WhatsApp message, or call, use the bank's official customer care number.

Take these precautions on your phone

Install only trusted apps on your phone and avoid unknown APKs. Use strong passcodes on banking apps, UPI apps, and email accounts. Don't share OTPs, UPI PINs, card PINs, or internet banking passwords with anyone.

The most important thing is that not receiving an OTP is not proof that your bank account is secure. If you notice any unknown transactions, notifying your bank immediately is the most important step.