Airtel introduces AI system to warn users of OTP frauds: How it works

Telecom operator Airtel has launched a new AI-based security system to help protect customers from bank fraud linked to OTP scams. According to the company, the solution operates at the network level and sends real-time alerts if it detects a potentially risky situation during a phone call. The company said that the aim is to stop users from sharing sensitive banking OTPs with fraudsters while they are still on the call.

The feature is part of Airtel’s wider efforts to curb spam and fraud on its network and strengthen protection against digital scams. The AI-based security system is currently active in Haryana, and Airtel plans to roll it out to all customers across the country within the next two weeks.

Commenting on the initiative, Shashwat Sharma, Managing Director & CEO Airtel, India said, “We are on a mission to make Airtel the safe network. While working towards this, we have realised that despite the foundational role played by One-Time Passwords (OTPs) in securing digital transactions, their efficacy is frequently being undermined by criminal tactics. We are, therefore, pleased to announce a significant advancement in Airtel’s network layer that is designed to strengthen protection against banking frauds.

Our newly developed, AI-powered, autonomous solution operates proactively at network level and is engineered to detect and intervene against fraudulent activity in real-time. Extensive trials have demonstrated a remarkable level of accuracy and impact in preventing the menace of such scams.”

Airtel’s AI-powered protection from fraud: How it works

How OTP scams work

Airtel said that fraud related to One-Time Passwords (OTPs) has become increasingly common. Scammers often create a sense of urgency by pretending to be delivery agents, bank officials or service providers. They convince customers that an OTP is needed to complete a simple task, such as receiving a parcel or resolving an issue.

In reality, the OTP is linked to a banking transaction. Once the customer shares it, fraudsters can misuse it to withdraw money or complete unauthorised payments.

How Airtel’s new AI fraud alert works

Airtel’s new system uses artificial intelligence to identify risky situations during incoming calls. If a bank OTP is triggered while a user is on a potentially suspicious call, the system detects it in real time.

At that moment, Airtel sends a fraud alert to the customer, warning them about the risk of sharing the OTP while still connected to the caller. The alert encourages users to pause and verify before giving consent for any banking-related OTP delivery.

According to Airtel, the idea is to give customers extra time to think and avoid reacting under pressure by combining AI-based detection with user awareness. With this, the service provider aims to reduce the chances of OTP-related bank fraud.

Part of an anti-spam push

Airtel mentioned that the launch of this AI-powered fraud alert is part of Airtel’s ongoing efforts to make its network safer. With OTP scams rising across the country, telecom-level intervention could help prevent fraud before money is lost. The company said the system works in real time and is designed to add an extra layer of protection for customers during suspicious calls.

The company said that over the past two years, Airtel has introduced several AI-based safety measures, including spam call alerts and blocking of malicious links, to prevent fraud at the network level.