USSD-based call forwarding service to be suspended

The Department of Telecommunications (DoT) issued an order on March 28 seeking temporary suspension of USSD-based call forwarding services. The order cited the rise in online fraud and improper use of the facility as reasons for the operation. This is a temporary suspension, meaning the government agency does not intend to permanently disable it, however, the official letter did not specify any date for its reinstatement. Notably, the agency launched the Chakshu Portal last month as a facility for people in India to report suspected fraudulent communications.

in a OrderThe Department of Transport said it had noticed that the USSD-based call forwarding facility was “being misused for some baseless activities”, noting that it was used to perpetrate online scams and frauds. The suspension also hinted at security vulnerabilities at the facility. “In this regard, the competent authority has decided that all licensees shall cease existing USSD-based call forwarding services with effect from April 15, 2024 until further notice,” the regulator added.

The timing of the suspension may also be related to minimizing the spread of misinformation during the upcoming Lok Sabha elections starting on April 19. After the ban takes effect, users will no longer be able to activate the service code by entering *401#. For all users who have activated the service on their phone numbers, the order states, “All existing users who have activated USSD based call forwarding services may be asked to reactivate the call forwarding services through alternative methods to ensure such services Will not be activated.” There is no notification from them. “

USSD or Unstructured Supplementary Services Data is a conversation-based text messaging service that does not require sending an SMS but is activated by entering a specific code on the dialer screen. These codes trigger specific telecommunications services such as balance information, ringtone activation, internet usage details and call forwarding. Since these services are provided by telecom operators, there is no need to download an app.

However, in recent years, this feature has been abused by cybercriminals. Multiple reports have found that scammers impersonate customer service representatives from victims’ banks or telecom carriers, asking them to dial a 401 call forwarding code and then calling a number that the scammer already has. Once call forwarding is activated, they can intercept any call, including voice-based OTPs, to steal victims’ money and sensitive data.