Entersekt | Resources | Encyclopedia | OTP Bots
What are OTP bots?
One-time password (OTP) bots are automated fraud tools used by cybercriminals to steal security codes sent to users via SMS, email, or authenticator apps. These bots often interact with victims through voice calls, text messages, or chat interfaces, impersonating banks or trusted organizations to trick users into disclosing their OTPs. Once obtained, fraudsters can bypass multi-factor authentication (MFA) and take over accounts.
How do OTP bots work?
Fraudsters typically purchase or rent OTP bots on the dark web. These bots are designed to launch real-time attacks, often triggered straight after a stolen username and password are used. They then contact the victim — posing as the bank or service provider — and convince them to share the OTP that has been sent for verification. With the OTP in hand, attackers can access accounts, authorize fraudulent transactions, or lock victims out.
OTP bots vs phishing
While phishing campaigns usually rely on fraudulent emails or fake websites to harvest credentials, OTP bots are more dynamic. They engage directly with victims in real time, often using automated phone calls or texts to increase credibility and urgency. This makes them harder for both consumers and fraud detection systems to identify.
Why are OTP bots a concern for financial institutions?
OTP bots undermine one of the most widely used security methods: multi-factor authentication (MFA). Since many banks and financial service providers still rely heavily on OTPs to protect their customers from fraud, these bots pose a major risk to account security and can lead to large-scale fraud losses. Financial institutions must consider stronger authentication methods, such as passkeys, biometrics, or app-based push notifications to combat OTP bot attacks.
Example
A fraudster gains a victim’s online banking username and password through a phishing attack. When the bank sends an OTP to the victim’s phone, an OTP bot calls the victim, pretending to be the bank’s fraud department. The victim, believing the call is legitimate, provides the OTP. The fraudster then uses it to log in and transfer money out of the victim’s account.
Additional resources:
Keywords:
OTP bots | Multi-factor authentication | Account takeover (ATO)
What are OTP bots?
One-time password (OTP) bots are automated fraud tools used by cybercriminals to steal security codes sent to users via SMS, email, or authenticator apps. These bots often interact with victims through voice calls, text messages, or chat interfaces, impersonating banks or trusted organizations to trick users into disclosing their OTPs. Once obtained, fraudsters can bypass multi-factor authentication (MFA) and take over accounts.
How do OTP bots work?
Fraudsters typically purchase or rent OTP bots on the dark web. These bots are designed to launch real-time attacks, often triggered straight after a stolen username and password are used. They then contact the victim — posing as the bank or service provider — and convince them to share the OTP that has been sent for verification. With the OTP in hand, attackers can access accounts, authorize fraudulent transactions, or lock victims out.
OTP bots vs phishing
While phishing campaigns usually rely on fraudulent emails or fake websites to harvest credentials, OTP bots are more dynamic. They engage directly with victims in real time, often using automated phone calls or texts to increase credibility and urgency. This makes them harder for both consumers and fraud detection systems to identify.
Why are OTP bots a concern for financial institutions?
OTP bots undermine one of the most widely used security methods: multi-factor authentication (MFA). Since many banks and financial service providers still rely heavily on OTPs to protect their customers from fraud, these bots pose a major risk to account security and can lead to large-scale fraud losses. Financial institutions must consider stronger authentication methods, such as passkeys, biometrics, or app-based push notifications to combat OTP bot attacks.
Example
A fraudster gains a victim’s online banking username and password through a phishing attack. When the bank sends an OTP to the victim’s phone, an OTP bot calls the victim, pretending to be the bank’s fraud department. The victim, believing the call is legitimate, provides the OTP. The fraudster then uses it to log in and transfer money out of the victim’s account.
Additional resources:
- Blog: OTPs for customer authentication: Past their expiry date and holding banks back
- Video: The journey from OTPs to secure, seamless customer experience
- Blog: MFA: Your best defense against social engineering attacks
Keywords:
OTP bots | Multi-factor authentication | Account takeover (ATO)
