First Midwest BankFirst Midwest Bank logoArrow DownIcon of an arrow pointing downwardsArrow LeftIcon of an arrow pointing to the leftArrow RightIcon of an arrow pointing to the rightArrow UpIcon of an arrow pointing upwardsBank IconIcon of a bank buildingCheck IconIcon of a bank checkCheckmark IconIcon of a checkmarkCredit-Card IconIcon of a credit-cardFunds IconIcon of hands holding a bag of moneyAlert IconIcon of an exclaimation markIdea IconIcon of a bright light bulbKey IconIcon of a keyLock IconIcon of a padlockMail IconIcon of an envelopeMobile Banking IconIcon of a mobile phone with a dollar sign in a speech bubbleMoney in Home IconIcon of a dollar sign inside of a housePhone IconIcon of a phone handsetPlanning IconIcon of a compassReload IconIcon of two arrows pointing head to tail in a circleSearch IconIcon of a magnifying glassFacebook IconIcon of the Facebook logoLinkedIn IconIcon of the LinkedIn LogoXX Symbol, typically used to close a menu
Skip to nav Skip to content
FDIC-Insured - Backed by the full faith and credit of the U.S. Government

Understanding One-time passcode fraud

One-time passcodes (OTPs) once were the security shield guarding your online accounts. Now, they're the new target for cunning scammers. OTP fraud involves tricking people into revealing their temporary security codes that enable them to log into their digital accounts with an extra layer of authentication, letting scammers steal money, data, and more.

This type of fraud is more challenging to pull off, but tactics are getting more sophisticated. Ultimately, the best prevention is education: here’s what you need to know to stay on guard.

How one-time passcode fraud tactics work

Scammers are able to succeed if they have the right technology and the right techniques. For example, phishing emails often embed malicious links or code within seemingly legitimate attachments or URLs. Clicking these can redirect you to fake websites designed to mimic real financial institutions or service providers. These replicas meticulously capture login details and, critically, the OTPs you enter within their deceptive interface. This can give scammers the information they need to compromise your account on the legitimate site they’ve spoofed.

Spoof calls can replicate the ID of a legitimate caller, like a bank or payment provider, to lower your guard. This allows the scammer to exploit your trust and potentially extract sensitive information, including your OTP. Fake mobile apps pose another threat, mimicking popular financial apps or services. Once downloaded, they subtly capture keystrokes or screen recordings, potentially stealing your OTPs alongside login credentials.

Scammers use urgency and fear to overcome doubt

Scammers use tech to get access, but their real power is psychological. Attackers create false urgency and fear to get victims to act quickly. For example, scammers create a sense of panic by claiming immediate threats to your account, demanding immediate action and your OTP. This tactic aims to bypass critical thinking and cloud your judgment, making you more susceptible to their demands.

Impersonation of trusted entities is also common. By mimicking the language and branding of familiar institutions like banks or tech support, cybercriminals exploit your inherent trust and lower your guard, making you more likely to go along with their requests.

Finally, creating fake scenarios adds another layer of deception. Made-up security incidents, like suspicious login attempts or technical issues, are used to justify their requests for sensitive information, including your OTP.

Understanding the cost of shared codes

When scammers get your OTP, they can do several things to compromise your money or your information. These can include:

  • Potential financial losses: Once armed with your code, scammers gain access to your bank accounts, credit cards, investments, and more. Unauthorized transactions, fraudulent charges, and even complete account depletion may result. 
  • Identity theft: Your shared code can become a key that unlocks a treasure trove of personal information. From names and addresses to Social Security numbers and financial details, the compromised data empowers thieves to impersonate you, opening new accounts, racking up debt, and wreaking havoc on your financial standing.

Practical tips to stay safe

There are seven major steps you can take protect yourself from falling prey to a one-time passcode scam:  

  1. Never share your OTP with anyone: This applies regardless of the situation, urgency, or apparent legitimacy of the request. Banks, tech companies, and legitimate individuals will never ask for your OTP.
  2. Opt for secure delivery channels: Whenever possible, choose authenticator apps over SMS delivery for OTPs. Authenticator apps offer an extra layer of security and are less vulnerable to interception.
  3. Strengthen your login defenses: Regularly update your login credentials and use strong, unique passwords. Activate two-factor authentication (2FA) whenever available, adding an extra layer of security beyond just the OTP.
  4. Always verify directly: If you receive a suspicious request, contact the company asking for it directly, and through official channels (website, phone number, app) to check. Never call phone numbers or click links provided in suspicious messages.
  5. Double-check before entering: Before entering any credentials or codes, meticulously examine website URLs and app legitimacy. Ensure you're on the real website and haven't been redirected to a well-designed fake.
  6. Report suspicious activity: If you’re targeted in an attack, or notice something suspicious that happened to you online, report it immediately to the relevant authorities and the organization you suspect might be targeted. Early reporting can help prevent others from becoming victims.
  7. Trust your gut instinct: If something feels off, it probably is. Listen to your intuition and never feel pressured to act immediately on requests for personal information or OTPs. Remember, legitimate institutions will never demand immediate action or threaten consequences for not providing sensitive information. You can always hang up and do more research!

Staying safe from OTP fraud

Fraudulent actors have to stay one step ahead of their victims to stay in business. Unfortunately, this also means that security enhancements are quickly met with new scamming technology and tactics.

Ultimately, however, the same underlying scams have always been around online: confusing the victim with a trustworthy message, pushing them to move quickly to fix a problem, and getting them to lower their guard enough to make a trick successful. The same goes for OTP scams, albeit with a new layer of security for scammers to push you through.

Visit our security page to learn about how Old National works to keep you and your money safe. 

Subscribe for Insights

Subscribe