'My Dad’s Phone Was Compromised, OTPs Kept Coming - By Morning Rs 42,000 Was Gone'

OTP scams are on the rise in India and even quick action is no longer enough to protect victims. In a recent case, a Delhi family reportedly lost Rs 42,000 overnight after a credit card was misused through

repeated OTP-based transaction. This online fraud has raised serious questions about bank responsibility, customer support and real-time fraud monitoring in our country.The incident was shared by a user on Elon Musk-owned social media platform X (previously called Twitter), who said her father’s smartphone was compromised late at night. Within minutes, OTP messages started arriving continuously. By morning, Rs 42,000 had already been spent using his credit card. The card was immediately blocked, but the damage had already been done.The credit card involved belonged to RBL Bank."my dad’s phone was compromised, OTPs kept arriving without pause. By morning, ₹42,000 had vanished. The credit card was blocked, but too late. It was a @rblbank credit card. We reported it within an hour, to the bank and to cybercrime, believing that acting fast would help. The transactions, we later learned, were made on @flipkartsupport PlayStation gift cards," the user wrote.

According to the post, the family reported the fraud within an hour. Complaints were filed with the bank and also on the cybercrime portal, believing that quick action would help stop or reverse the transactions. However, things did not move as expected.The bank sent an email saying the case was not considered card or credit fraud and therefore, they could not help further. In simple terms, the family was told the loss was not the bank’s responsibility.Scams On WhatsApp And Telegram Are On Rise, Man Loses Rs 51,00,000 In An Online Fraud: All Details

"Days passed with no response. No recovery. Then an email from the bank: it wasn’t considered card or credit fraud. They couldn’t help, bank says it’s not their responsibility. Where is the customer support? And what is the point of fraud monitoring if the bank can’t detect or stop an obvious fraud in real time? @rblbank. Has anyone gone through something like this before? Any guidance would really help," she wrote on X. This response has triggered outrage online. The user questioned why fraud monitoring systems failed to flag repeated OTP-based transactions happening in quick succession. She also asked what the point of such systems is if obvious fraud cannot be stopped in real time."Indian banks terrify me. We don’t have this nonsense in the UK unless someone gets duped by fake calls or emails, and even then, if they were a victim of fraud, they will get their money back. It’s the law," a user replied on her post. Many users replied saying they had faced similar issues, especially with digital gift cards where banks often deny liability. Experts have repeatedly warned that fraud involving OTPs and digital vouchers falls into a grey area, leaving customers stuck between banks, platforms and law enforcement.For now, the family is still waiting for answers and Rs 42,000 remains unrecovered.How to avoid such scams:To stay safe from OTP-based scams, immediately switch off mobile data, block the card using the bank’s app or helpline and inform the bank without delay. Do not click on unknown links sent through SMS, WhatsApp or email and avoid installing apps from outside official app stores. Always keep your phone updated with the latest security patches and use screen lock and app lock features. Regularly check bank statements and enable instant transaction alerts so any suspicious activity can be caught early.