Online Payments Possible Without OTP: Banks and Telecom Companies to Introduce ‘Silent Authentication’; Transactions to Halt if SIM and Device Do Not Match
Major private banks and telecom companies across the country are currently working on a ‘Silent Authentication’ technology. This innovation will eliminate the need for a One-Time Password (OTP) when making online payments. Operating in the background, this system will automatically verify whether the mobile number registered with the banking app matches the SIM card currently inserted in the phone.
If the SIM card and the registered number do not match, the transaction will be blocked immediately. A key feature of this system is that it requires no active input or action from the user. This technology will also be compatible with eSIMs. It is expected to curb fraudulent activities such as SIM cloning and eSIM swapping. This information was shared by Sameer Shetty, Head of Digital Business at Axis Bank.
Aiding in the Prevention of Online Fraud
Shetty explained, “We are collaborating with telecom companies on several pilot projects involving Silent Authentication. If a user is logged into a banking app, but their current mobile number does not match the number registered with the account, the telecom network will send us a signal indicating this discrepancy. This will enable us to detect potential fraud without causing any inconvenience to the customer.”
The System Will Operate in the Background
According to Sundareshwar Krishnamurthy, Cyber Leader at PwC India, previous security layers were often susceptible to easy hacking. Now, however, banks and telecom companies are shifting the verification process to the core infrastructure of the network itself.
This system will function in the background, remaining invisible to both the user and potential hackers. To further bolster security, additional features—such as Face ID authentication and the generation of verification codes (OTPs) directly within the app—are also being integrated into the system.
