TRAI To Implement New OTP Traceability Rules From December 1st To Curb Cybercrime

New Delhi, 29th November 2024: Starting from 1st December 2024, India will witness a series of regulatory changes that aim to strengthen user security and improve governance, particularly in the telecom sector. One key update involves the Telecom Regulatory Authority of India (TRAI) implementing stricter measures to combat fraudulent One Time Passwords (OTPs) used by cybercriminals. This move is part of TRAI’s ongoing efforts to enhance message traceability and prevent financial fraud, which has been on the rise in recent months.

Telecom companies have been instructed to ensure the traceability of all messages, a step that aims to curb the spread of fake OTPs, which are commonly used by scammers to access personal information and cause substantial financial losses. To comply with the new directive, telecom operators must put in place systems that allow the tracking of all messages, with the deadline for compliance set for 30th November 2024. Although the original deadline was 31st October, it was extended at the request of service providers.

There were concerns that the new rules could result in delays in receiving OTPs, especially for essential services like net banking and Aadhaar authentication. However, TRAI has assured the public that there will be no disruption in the timely delivery of OTPs. The regulatory body has addressed circulating misinformation, clarifying that the changes are specifically designed to improve message traceability without affecting service speed.

This update comes after TRAI’s previous efforts to address the growing issue of cybercrime, including fake calls and fraudulent messages. In line with this, new rules introduced on 1st October 2024 mandated telecom providers to implement systems for tracking the origins of bulk messages, further tightening security measures.