Call forwarding through USSD codes will no longer work in India

The Department of Telecom (DoT) has asked all telecom operators in India to change how call forwarding works on their networks. That means removing the existing method that involves the use of USSD (Unstructured Supplementary Service Data) codes, sometimes referred to as quick codes that let users activate services on their number through specific codes that begin with an asterisk symbol (*) and end with a hash (#). The USSD-based call forwarding facility must not work after April 15, according to DoT, which also told carriers to look for alternatives.

Why is USSD-based call forwarding being discontinued?

The reason behind the decision to scrap the long-running USSD-based call forwarding is the increase in online fraud and crimes through a mobile phone. There have been several cases where certain individuals approach mobile phone users to make a call from their devices and, without their knowledge, activate call forwarding on their numbers. Call forwarding allows malicious actors to receive calls and text messages on a different number from the one they were sent to.

In a notification sent on March 28, the DoT has listed how USSD-based call forwarding, which uses the *401# code, is misused. It said cybercrimes involving call forwarding through a USSD code have recently increased. The most common fraud currently rampant is where cybercriminals pose as customer service representatives or technical support executives from a telecom company. They lure targeted individuals into dialling the *401# code followed by a mobile number to solve their network-related problems. However, they make them unintentionally forward their calls to a different number. All the calls, including those from banks for OTP, are forwarded to this number, leaving customers’ bank accounts and other sensitive information vulnerable.

How will the government tackle such frauds?

After an initial advisory back in January that alerted users not to respond to calls urging them to dial the *401# USSD code, the government is now instructing all the telecom companies to discontinue this facility from mid-April. Instead, these companies must devise an alternate method that cannot be misused for online fraud. Victims of such fraud should report the activity on the newly-launched Chakshu portal.