Airtel Unveils AI-Powered System Designed to Warn Users About OTP-Related Bank Frauds

Airtel, India's second-largest telecom service provider (TSP), introduced its network-based AI spam detection solution for calls and SMS in September 2024. Later, in May 2025, the company launched its AI-enabled fraud detection feature in India for emails and WhatsApp. Now, Airtel has unveiled its new Fraud Alerts system to curb bank-related scams, which are committed by bad actors via leaked one-time passwords (OTPs). Leveraging AI, the alert system will identify “potentially risky situations” to warn subscribers. This comes as the instances of digital arrests, fraud, and scams increase. Recently, the Supreme Court reportedly said that Indians lost about Rs. 54,000 crore to digital arrest scams.

Airtel's Fraud Alerts Use AI to Detect Potentially Risky Incoming Calls

The TSP, on Wednesday, announced that it is introducing the new Fraud Alert system to warn users about OTP-related bank scams. The functionality is already live in Haryana. However, the company plans to roll out Fraud Alerts to all Airtel users across the country over the next two weeks.

After a user receives an OTP over SMS, the functionality will leverage AI to identify potentially risky incoming calls. Claimed to offer real-time fraud protection over its network, the customers will be sent an alert that intervenes and warns them about the potential risks of providing consent for a banking transaction OTP while they are still on the call.

The company said that bad actors often exploit the urgency “associated with OTPs for day-to-day services”, including delivery. Fraudsters then dupe users into sharing banking transaction OTPs, which exposes their account savings to fraud.

Fraud Alerts is the latest addition to the company's suite of scam and spam protection features. In September 2024, Airtel launched the AI-powered spam detection feature for calls and SMS, which was later expanded to include Indian regional languages in April 2025.

Similarly, in May 2025, Airtel introduced a fraud detection solution for OTT apps and social media platforms, including WhatsApp, Instagram, and Facebook. The TSP uses AI to identify malicious links and websites, and blocks access to them if the same have been flagged as a potential risk.

This comes amid growing concerns about the increasing instances of digital arrests and telephonic scams. The Mint reports that the Supreme Court recently highlighted that Indians have lost over Rs. 54,000 crores to digital arrests, during which the victim is coerced into sharing their banking information and OTPs, or even transferring money to the fraudster's account.