Which Ipc/Bns And It Act Sections Applies For Otp Fraud Cases?

With the wave of digital banking and UPI in India, cybercriminals have devised new avenues to dupe citizens. Among these is the OTP fraud. In this scam, fraudsters pose as officials to dupe unsuspecting victims into revealing their OTPs so the fraudster may access the bank account, wallet, or data.

This article explains which IPC/BNS and IT Act sections apply to OTP fraud, legal remedies available to victims, how to report it, recent trends, and what actions you can take immediately after such a scam.

What is OTP Fraud? 

If you’ve ever received a call from someone pretending to be from your bank or an SMS warning about account suspension, you’re not alone. OTP (One-Time Password) fraud is a modern digital trap, where scammers trick you into revealing that short code sent to your phone.

Real examples from clients:

• A young professional clicked on a job interview link and was asked to “verify” with an OTP, ₹42,000 gone.
• A senior citizen got a fake call from “RBI” and lost ₹1.2 lakh after sharing OTP.

OTP frauds exploit trust and urgency, and the moment you share that code, your money can vanish in seconds.

Which IPC/BNS & IT Act Sections Apply? 

Section 419 IPC/Section 319 (2) BNS: Cheating by Pretending to Be Someone Else

• Used when: The scammer pretends to be a bank or government official
• Punishment: Up to 3 years(now enhanced to 5 years under BNS)

Section 420 IPC/Section 318 (4) BNS: Cheating & Inducing Delivery of Property

• Most powerful section for OTP fraud involving money loss
• Punishment: Up to 7 years and fine. Applied in every fraud case involving financial transactions

Sections 465, 468, 471 IPC/Sections 336(2), 336(3), 340 (2) BNS: Forgery & Using Fake Documents

Used when fake SMSes, websites, or digital messages mimic real entities to commit cyber fraud In one case, a phishing site was designed exactly like a bank’s login page

Section 66C IT Act: Identity Theft

• Covers misuse of OTP, passwords, UPI PINs
• Penalty: 3 years jail and ₹1 lakh fine
• OTP counts as a unique ID feature, it’s legally protected

Section 66D IT Act: Digital Impersonation

• Used when the fraudster impersonates someone over a device (call, SMS, app)
• Penalty: 3 years and ₹1 lakh
• In one case, the scammer posed as a police officer over WhatsApp and scared a client into sharing OTP

Real Court Judgments Supporting Victims of OTP Fraud

• Basheer v. State of Kerala (2019): The court convicted an OTP fraudster using Sections 419, 420 IPC/Sections 319(2), 318 (4) and 66C, 66D IT Act. This case became the backbone of Meena’s legal strategy
• Avnish Bajaj v. State (2005): Set rules on platform accountability, very useful if fraud occurs via payment apps or fake websites
• Praful Desai Case: Recognized digital evidence, call logs, SMS screenshots, UPI logs, as admissible in courts

What To Do Immediately After You’re Tricked into Sharing an OTP?

This is the exact checklist for every OTP fraud victim 

• File an FIR: Visit the nearest Cyber Crime Cell or Police Station. Include IPC 419, 420, 465, 468, 471/BNS 319(2), 318 (4), 336 (2), 336 (3), 340 (2) and IT Act 66C, 66D Attach call logs, messages, transaction slips
• Register Complaint at cybercrime.gov.in Choose “Financial Fraud” category
• Inform Your Bank: Call your bank’s 24×7 helpline and email their fraud division. Most banks have a 24 to 48-hour window to reverse unauthorized transactions.

Why OTP Fraud Is So Hard to Crack?

The main hurdles are:

• People report too late: Money is often moved quickly through shell wallets
• Multiple jurisdictions: The scammer may be in another state entirely
• Digital illiteracy: Many clients don’t even realize they’ve been scammed

In one rural case, the victim had no idea what an OTP was and assumed it was a standard “bank code”

Government Action: What’s Being Done

• National Helpline 1930: Call this number immediately after a fraud to block the transaction before it’s too late
• RBI Measures: Banks are now required to use real-time monitoring and fraud filters

Legal Remedies Used for Clients

• RBI Compensation: If reported within 3 working days and you weren’t negligent, the bank must refund.
• Civil Suit: For mental harassment and financial loss, you can sue under tort law.
• Consumer Forum: If the bank fails to act despite timely reporting, file a case for service deficiency. A client filed a case whose bank delayed response despite proof of fraud within 24 hours.

How to Avoid Falling into the OTP Trap?

• Never share OTP, even with someone claiming to be from RBI, police, or your bank
• Double-check SMS links and app URLs
• Enable all SMS or email alerts
• Don’t panic when you receive threats like “FIR will be filed”
• Use apps like True caller to flag scam calls

Conclusion

OTP fraud doesn’t just target the careless, it can happen to anyone. But the law is on your side. From IPC Sections 419, 420, 468, 471/BNS Sections BNS 319(2), 318 (4), 336 (3), 340 (2) to IT Act Sections 66C and 66D, there are strong legal routes to get justice.

In case you are a victim or know of a victim, take steps right away. File the FIR, secure evidence, inform the bank, and engage a lawyer for help, if required. 

One can talk to lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

FAQs

1. What kind of digital evidence is admissible in OTP fraud cases?

Call recordings, SMS screenshots, transaction records, app logs, and cyber cell reports are admissible under the Indian Evidence Act/Bhartiya Sakshya Adhiniyam, especially post Praful Desai judgment.

2. Can I file a complaint even if I only shared the OTP but didn’t lose money?

Yes, an attempted fraud is also punishable under IPC/BNS and IT Act. You should report it immediately to prevent misuse or future attempts.

3. How long does it take to get a refund after OTP fraud is reported?

If reported within 3 working days and bank policies are followed, refunds under RBI guidelines can take 7-15 business days, depending on the investigation.