In early 2025, European authorities shut down a cybercriminal operation called JokerOTP, responsible for over 28,000 phishing attacks across 13 countries. According to Forbes, the group used one-time password (OTP) bots to bypass two-factor authentication (2FA), netting an estimated $10 million in fraudulent transactions. It’s just one example of how fraudsters are exploiting digital security gaps with AI and automation.
What is an OTP bot?
An OTP bot is an automated tool designed to trick users into revealing their one-time password, a temporary code used in multifactor authentication (MFA). These bots are often paired with stolen credentials, phishing sites or social engineering to bypass security steps and gain unauthorized access.
Here’s how a typical OTP bot attack works:
- A fraudster logs in using stolen credentials.
- The user receives an OTP from their provider.
- Simultaneously, the OTP bot contacts the user via SMS, call or email, pretending to be the institution and asking for the OTP.
- If the user shares the OTP, the attacker gains control of the account.
The real risk: account takeover
OTP bots are often just one part of a larger account takeover strategy. Once a bot bypasses MFA, attackers can:
- Lock users out of their accounts
- Change contact details
- Drain funds or open fraudulent lines of credit
Stopping account takeover means detecting and disrupting the attack before access is gained. That’s where strong account takeover/login defense becomes critical, monitoring suspicious login behaviors and recognizing high-risk signals early.
How accessible are OTP bots?
- Mentions of OTP bots on dark web forums jumped 31% in 2024.
- Bot services offering OTP bypass tools were being sold for just $10 to $50 per attack.
- One user on a Telegram-based OTP bot platform reported earning $50,000 in a month.
The barrier to entry for fraudsters is low, and these figures highlight just how easy and profitable it is to launch OTP bot attacks at scale.
The evolution of fraud bots
OTP bots are one part of the rising wave of fraud bots. According to our report, The Fraud Attack Strategy Guide, bots accounted for 30% of fraud attempts at the beginning of 2024. By the end of the year, that number had risen to 80% — a nearly threefold increase in just 12 months.
Today’s fraud bots are more dynamic and adaptive than before. They go beyond simple scripts, mimicking human behavior, shifting tactics in real time and launching large-scale bot attacks across platforms. Some bypass OTPs entirely or refine their tactics with each failed attempt. With generative AI in the mix, bot-based fraud is getting faster, cheaper and harder to detect.
Effective fraud defense now depends on detecting intent, analyzing behavior in real time and stopping threats earlier in the process.
Read this blog: Learn more about identifying and stopping bot attacks.
A cross-industry problem
OTP bots can target any organization that leverages 2FA, but the impact varies by sector.
- Financial services, fintech and buy now, pay later (BNPL) providers are top targets for OTP bot attacks due to high-value accounts, digital onboarding and reliance on 2FA. In one case outlined in The Fraud Strategy Attack Guide, a BNPL provider saw 25,000+ bot attempts in 90 days, with over 3,000 bots completing applications, bypassing OTP or using synthetic identities.
- Retail and e-commerce platforms face attacks designed to take over customer accounts and make unauthorized purchases using stored payment methods, gift cards or promo credits. OTP bots can help fraudsters trigger and intercept verification codes tied to checkout or login flows.
- Healthcare and education organizations can be targeted for their sensitive data and widespread use of digital portals. OTP bots can help attackers access patient records, student or staff accounts, or bypass verification during intake and application flows, leading to phishing, insurance fraud or data theft.
- Government and public sector entities are increasingly vulnerable as fraudsters exploit digital services meant for public benefits. OTP bots may be used to sign up individuals for disbursements or aid programs without their knowledge, enabling fraudsters to redirect payments or commit identity theft. This abuse not only harms victims but also undermines trust in the public system.
Across sectors, the message is clear: the bots are getting in too far before being detected. Organizations across all industries need the ability to recognize bot risk at the very first touchpoint; the earlier the better.
The limitations of OTP defense
OTP is a strong second factor, but it’s not foolproof. If a bot reaches the OTP stage, it’s highly likely that they’ve already:
- Stolen or purchased valid credentials
- Found a way to trigger the OTP
- Put a social engineering play in motion
Fighting bots earlier in the funnel
The most effective fraud prevention doesn’t just react to bots at the OTP step; it stops them before they trigger OTPs in the first place. But to do that, you need to understand how modern bots operate and how our bot detection solutions, powered by NeuroID, fight back.
The rise of GenAI-powered bots
Bot creation has become dramatically easier. Thanks to generative AI and widely available bot frameworks, fraudsters no longer need deep technical expertise to launch sophisticated attacks. Today’s Gen4 bots can simulate human-like interactions such as clicks, keystrokes, and mouse movements with just enough finesse to fool traditional bot detection tools.
These bots are designed to bypass security controls, trigger OTPs, complete onboarding flows, and even submit fraudulent applications. They are built to blend in.
Detecting bots across two key dimensions
Our fraud detection solutions are purpose-built to uncover these threats by analyzing risk signals across two critical dimensions.
1. Behavioral patterns
Even the most advanced bots struggle to perfectly mimic human behavior. Our tools analyze thousands of micro-signals to detect deviations, including:
- Mouse movement smoothness and randomness
- Typing cadence, variability and natural pauses
- Field and page transition timing
- Cursor trajectory and movement velocity
- Inconsistent or overly “perfect” interaction patterns
By identifying unnatural rhythms or scripted inputs, we can distinguish real users from automation before the OTP step.
2. Device and network intelligence
In parallel, our technology examines device and network indicators that often reveal fraud at scale:
- Detection of known bot frameworks and automation tools
- Device fingerprinting to flag repeat offenders
- Link analysis connecting devices across multiple sessions or identities
- IP risk, geolocation anomalies and device emulation signals
This layered approach helps identify fraud rings and coordinated bot attacks, even when attackers attempt to mask their activity.
A smarter way to stop bots
We offer both a highly responsive, real-time API for instant bot detection and a robust dashboard for investigative analytics. This combination allows fraud teams to stop bots earlier in the funnel — before they trigger OTPs, fill out forms, or submit fake credentials — and to analyze emerging trends across traffic patterns.
Our behavioral analytics, combined with device intelligence and adaptive risk modeling, empowers organizations to act on intent rather than just outcomes. Good users move forward without friction. Bad actors are stopped at the source.
Ready to stop bots in their tracks? Explore Experian’s fraud prevention services.
*This article includes content created by an AI language model and is intended to provide general information.
