Bharti Airtel has announced the launch of an artificial intelligence-based system aimed at protecting customers from OTP-related banking frauds. The telecom operator said the new security layer is designed to proactively detect and warn users when they are at risk of falling victim to scams involving one-time passwords (OTPs), which are commonly used for banking and financial transactions.

The initiative comes amid a sharp rise in digital payment frauds across India, where scammers often trick individuals into sharing OTPs under the guise of bank officials, customer care representatives, or delivery agents.

How the AI System Works

According to the company, the newly introduced AI-powered mechanism continuously monitors suspicious calling patterns and SMS activity linked to financial fraud attempts. When the system detects high-risk behavior—such as a potential scam call followed by an OTP message—it can trigger real-time alerts to warn the user not to share sensitive credentials.

The technology is said to analyze multiple parameters including caller behavior, frequency of suspicious calls, known fraud databases, and contextual signals, enabling it to identify emerging scam tactics. The AI engine reportedly evolves over time, learning from new fraud patterns to enhance detection accuracy.

Real-Time Alerts to Prevent Financial Loss

Airtel stated that its solution is focused on prevention rather than post-incident resolution. By alerting users at the exact moment when they may be pressured to disclose an OTP, the system aims to stop fraud before money is siphoned from bank accounts.

Users may receive on-screen warnings, SMS notifications, or in-app prompts advising them not to share OTPs or click on suspicious links. The alerts are designed to be clear and actionable, particularly for individuals who may not be tech-savvy.

Rising Concern Over OTP and Digital Payment Scams

India has witnessed a steady increase in cybercrime cases related to digital banking, UPI transactions, and card payments. Fraudsters typically rely on social engineering tactics, impersonating trusted institutions to extract confidential details such as OTPs, PINs, or CVV numbers.

Industry experts have repeatedly emphasized that OTPs are strictly confidential and should never be shared with anyone, including individuals claiming to represent banks or telecom providers. Despite awareness campaigns, many users continue to fall prey to sophisticated scam techniques.

Part of Broader Cybersecurity Push

The telecom major indicated that the AI-powered fraud detection system is part of its broader effort to strengthen digital safety for its subscribers. With millions of users relying on mobile networks for banking and financial services, telecom operators are increasingly playing a role in cybersecurity.

The company also highlighted collaboration with financial institutions and regulatory authorities to combat fraud more effectively. As digital adoption accelerates, such AI-led interventions are expected to become critical in safeguarding users from evolving cyber threats.