OTP scam syndicate bust in Eldorado Park and Soweto

A One Time Pin (OTP) scam syndicate has been bust in Eldorado Park and Soweto, south of Johannesburg.

It is understood key individuals believed to be involved in the OTP scam were handcuffed by the South African Police Services (Saps) in collaboration with Crime Intelligence, Commercial Crimes,other crime prevention and mobile operator MTN.

Syndicate headquarters

MTN spokesperson Mthokozisi Ndlovu said the breakthrough comes after a successful search and seizure warrant on properties believed to be headquarters of these OTP scam syndicates.

“The successful raid is a result of a coordinated effort by various stakeholders including anonymous tip-offs.  Upon the investigation, MTN and the Commercial Crimes Unit obtained search warrants to raid five properties in Eldorado Park believed to be associated with front businesses, suppliers, call centres and operations of an OTP scam syndicate.”

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Modus operandi

Ndlovu said in most of the incidents, the criminals claimed to be MTN call centre agents.

“Their modus operandi includes requesting the customer’s security details under the pretence that they were blocking the processing of a fraudulent SIM swap request that was being made on the subscriber’s number without their knowledge or authorisation.

“The scammers then use the customer’s responses, which they obtained during the call, to access the mobile and/or banking applications to transfer funds illegally,” Ndlovu said.

ID fraud

Identity or subscription fraud has unfortunately become a threat impacting network operators and customers around the world, as criminals constantly work to find new ways to circumvent fraud prevention systems.

 The OTP scam is one of the prevalent fraudulent tactics in the telecommunication industry. Fraud in telecommunication industry often appears in a cyclical manner, based on what syndicates are targeting, at any given time.

MTN said it has put several measures in place to mitigate the impact of OTP scams. 

“We urge all our customers not to respond to unsolicited calls and requests for their security details from an unknown number. Communication to customers is usually carried via platforms such as social media posts and press statements,” Ndlovu said.

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