Airtel, a leading telecom provider in India, has introduced an advanced network-based AI system to combat spam calls and SMS since September 2024. Building on this, in May 2025, they expanded their AI-driven fraud detection to cover emails and WhatsApp. Now, Airtel has launched its latest “Fraud Alerts” system, specifically designed to tackle bank-related scams that often exploit leaked one-time passwords (OTPs). This AI-powered alert system is engineered to detect and warn subscribers about potentially risky situations, especially crucial in light of the rising number of “digital arrest” scams. The Supreme Court recently revealed that these scams have cost Indians approximately Rs. 54,000 crore.
Airtel’s AI-Powered Fraud Alerts: How They Identify Risky Calls
The telecom provider announced its new Fraud Alert system this Wednesday, aiming to protect users from bank scams involving OTPs. The service is already active in Haryana and is slated for a nationwide rollout to all Airtel users within the next two weeks.
Upon receiving an OTP via SMS, the system’s AI will spring into action, analyzing incoming calls for potential risks. Designed to provide real-time fraud protection, it will proactively send an alert to customers. This intervention warns them about the dangers of sharing banking transaction OTPs while still on a suspicious call, providing a critical layer of defense.
Airtel highlighted that malicious actors frequently leverage the urgency associated with OTPs for common services, such as deliveries. These fraudsters then trick users into divulging banking transaction OTPs, thereby exposing their savings to theft.
The Fraud Alerts system represents the newest addition to Airtel’s comprehensive suite of scam and spam prevention tools. Prior to this, in September 2024, Airtel rolled out its AI-powered spam detection for calls and SMS, later enhancing it to support Indian regional languages by April 2025.
Furthermore, in May 2025, Airtel unveiled a fraud detection solution specifically for OTT applications and popular social media platforms like WhatsApp, Instagram, and Facebook. This solution employs AI to identify and block access to malicious links and websites that have been flagged as potential threats.
This initiative responds to growing concerns over the escalating number of digital arrests and phone-based scams. Mint reports that the Supreme Court recently brought attention to the fact that Indians have cumulatively lost over Rs. 54,000 crores to digital arrests, a scheme where victims are coerced into sharing banking details, OTPs, or transferring money directly to fraudsters.