You’re on a call with someone who says they’re a loan agent. They sound polite. Professional. Maybe even helpful. Then they say something like, “Please share the OTP you just received, it’s just for verification.”
And just like that, you could be handing over control of your money or a loan to someone you don’t know.
It might not feel like a big deal in the moment. But sharing a one-time password (OTP) with anyone, even a supposed agent, can lead to serious trouble.
Let’s talk about why this happens, what the risks really are and how to protect yourself.
What’s an OTP?
An OTP (One-Time Password) is a short, temporary code that your bank, lender or loan platform sends you. It’s meant to confirm a transaction, log in to your account, or verify your identity.
In simple terms, it’s a digital key to your account. Once someone has it, they can unlock or authorize something important on your behalf.
That’s why OTPs are private. They’re never meant to be shared, not even with customer service, not with a bank representative, and definitely not with a loan agent.
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Why Would a Loan Agent Ask for Your OTP?
In a perfect world, they wouldn’t.
A genuine loan agent or platform will never ask for your OTP. But here’s what fraudsters often say to trick you:
- “It’s just for verifying your details.”
- “We’re processing your application.”
- “It won’t go through unless you confirm this code.”
They sound believable, especially if you’re new to loans or anxious for approval. But what they’re really doing is using your OTP to apply for loans in your name, access your data or transfer funds.
What Can Go Wrong If You Share It?
- A Loan Could Be Issued Without Your Knowledge
Yes, it’s possible. Fraudsters can use your personal info and OTP to apply for a loan and leave you with the EMIs. - Your Bank or UPI Account Can Be Compromised
If it’s linked to a transaction, one OTP is all it takes to send money from your account. Scary, but true. - Your Personal Data Gets Misused
With OTP access, scammers can change login details, access documents, or misuse your Aadhaar or PAN for other loans. - Your Credit Score Takes the Hit
If someone takes a loan using your identity and doesn’t repay, the non-payment shows up on your credit report. - Legal & Emotional Stress
Dealing with loan fraud is emotionally draining and time-consuming. You’ll have to file complaints, prove your innocence, and recover your credit profile.
Real-Life Example of AnilAnil got a call from someone claiming to be a loan agent who said he could help speed up the approval. They asked for his OTP “just to confirm his identity.” A week later, Anil found that a loan of ₹50,000 had been disbursed in his name. He didn’t get the money, but the EMI notices started arriving. He had to file a police complaint, freeze his credit report, and fight to clear his name. |
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How to Protect Yourself (and Your OTP)
- Never Share OTPs With Anyone
This is rule number one. Not with agents, not with callers, not even if they say it’s urgent. - Use Verified Platforms Only
Stick to trusted platforms like Buddy Loan, which never ask for OTPs over calls. The entire process is secure and guided. - Install a Call Blocker App
Many spam or fraud calls are now flagged. Use a verified app to filter them out. - Check Your Credit Score Regularly
Using Buddy Score, you can track if any loans or credit activity have been registered under your name; early detection helps. - Set Up Transaction Alerts
Always keep SMS or email alerts ON for bank and loan activity. It’s your first line of defense.
What to Do If You Already Shared an OTP?
It’s okay, mistakes happen. Here’s what to do immediately:
- Call your bank or lender and report it.
- Block or freeze your credit report through credit bureaus like CIBIL.
- File a complaint at your local police station or on the cybercrime portal.
- Monitor your credit score through Buddy Score to track any suspicious activity.
Final Thoughts
Loan scams are getting smarter, but so can you. One moment of hesitation before sharing your OTP can save you from months of stress, financial loss or credit score damage.
So the next time someone calls asking for your OTP, remember this: If they’re legit, they won’t need it. If they ask for it, they’re not legit.
Your OTP is yours alone. Keep it safe. And always choose verified, transparent platforms like Buddy Loan when applying for credit.
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