In a world where cybercriminals operate like startups, it was only a matter of time before two-factor authentication (2FA)—long considered a cornerstone of fintech security—became the next target of automation. According to Radware’s 2024 cyber threat report, a new breed of cyberattack is on the rise, and it’s cheap, scalable, and alarmingly effective: OTP bots.
These underground tools, often run via Telegram, are being used to intercept and exploit one-time passcodes (OTPs) from unsuspecting users. The kicker? They don’t just target individuals—they target financial institutions by eroding trust in digital security protocols.
Here’s what every fintech leader needs to know.
How OTP Bots Work: Social Engineering Meets Automation
At their core, OTP bots are tools that automate the human side of hacking. They don’t break through firewalls or exploit software vulnerabilities—instead, they impersonate trusted entities and manipulate real people.
The attack typically unfolds in three phases:
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Credential Stuffing: Attackers use previously leaked usernames and passwords to attempt logins on banking or fintech platforms.
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OTP Interception: When 2FA prompts block access, the attacker flags the account as a target for an OTP bot.
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Social Engineering at Scale: Using Telegram bots with AI-generated voice calls or SMS, the attacker pretends to be a bank or fintech service provider. The bot convinces the user to share their OTP—often under the guise of verifying a suspicious transaction or preventing fraud.
Once the OTP is obtained, the attacker logs into the account, changes the password and recovery details, and effectively locks out the legitimate user.
A Growing Cybercrime Economy
Radware tracked 1,354 OTP bot mentions across dark web forums in 2024, a 31% increase from the year prior. Prices for these services range from $10 to $50 per attack, making them accessible even to amateur threat actors.
The low barrier to entry, combined with the increasing use of Telegram as a command-and-control hub, has turned OTP bots into a booming micro-industry within the cybercrime ecosystem.
Even more concerning: these services are marketed with customer support, language customisation, and user-friendly dashboards. This is phishing 2.0—fully automated, on-demand, and disturbingly polished.
Why Fintech is the Prime Target
The financial sector, especially fintech startups and neobanks, is a goldmine for attackers. OTP bots are designed to exploit trust-based digital interactions, which fintech companies rely on to deliver seamless customer experiences.
Many fintech users are digital natives who expect fast, frictionless service—and that expectation can make them more susceptible to “urgent” security requests sent by fake bots posing as their provider.
The impersonation angle is also key: bots are increasingly trained to mimic the exact tone and language used by real banking apps and support teams, increasing their success rates.
How OTP Bots Are Outpacing Traditional Defences
OTP bots highlight a dangerous shift: the weaponisation of convenience. Fintech firms have embraced 2FA as a standard security layer, but attackers are now exploiting the very thing that makes 2FA effective—the user.
Where traditional phishing required manual effort, OTP bots offer:
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Automation at scale
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AI-generated messages
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Real-time interaction with targets
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Minimal attacker involvement
What used to be a high-effort con job is now plug-and-play.
What Fintech Security Teams Can Do
The rise of OTP bots signals a need for a new approach to identity verification and threat response. Here’s what fintech firms should consider:
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Move Beyond SMS OTPs: Encourage use of app-based authenticators or passkeys, which are less vulnerable to social engineering.
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Harden Account Recovery Processes: Many OTP bot attacks end with account takeovers via recovery loopholes. Audit and secure these flows.
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Monitor Telegram and Dark Web Activity: Threat intelligence should include active tracking of underground bot services targeting your brand.
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Proactive User Education: Empower customers to recognize and report fake calls or messages claiming to be from your institution.
Most importantly, fintechs must treat user trust as a dynamic threat surface, not just a UX metric. OTP bots erode that trust—quietly, efficiently, and at scale.
Final Thought
The financial services sector has long been a battleground for cybersecurity. But 2025’s biggest threat isn’t a zero-day exploit or a data breach—it’s a voice on the other end of the phone, pretending to help.
In the hands of bad actors, OTP bots are turning simple conversations into full-blown compromises. And unless fintech steps up its defences, the cost of convenience may soon be security itself.
