Call Forwarding Scam: How Fraudsters Divert Your Calls and Target Your Bank Accounts
Imagine making a phone call and everything appears normal. Your phone has network coverage. Your SIM is still in your phone. You haven't shared your OTP with anyone.
But somewhere in the background, your incoming calls may have been redirected to another number.
Call forwarding itself is a legitimate telecom feature — it redirects calls when your phone is busy, unreachable, or deliberately configured to. The danger begins when a fraudster tricks a victim into enabling forwarding without fully understanding what is happening.
What Is Call Forwarding?
Call forwarding is a telecom feature that redirects incoming calls from one phone number to another. For legitimate reasons, someone may configure their number to forward calls when the phone is busy, switched off, or unanswered, or simply because they want calls redirected to another number.
There is nothing inherently fraudulent about the feature. The problem occurs when someone else causes the forwarding to be activated without the subscriber's informed consent.
India already acted on this
The Department of Telecommunications (DoT) ordered telecom operators to discontinue USSD-based call forwarding services from April 15, 2024, stating the facility was being misused. DoT specifically referenced USSD-based unconditional call forwarding, commonly associated with *401#, and directed operators to provide alternative methods so forwarding is never activated without a subscriber's notice.
What Is a Call Forwarding Scam?
A call forwarding scam is a social-engineering attack in which a fraudster manipulates a victim into enabling call forwarding or otherwise causing incoming calls to be redirected. The fraudster may pretend to be a telecom company employee, a bank representative, customer support, a government official, or a mobile network executive.
The victim may then be instructed to enter a code, change a setting, or follow a supposedly necessary verification procedure. The real objective is to redirect incoming calls.
Why Would a Scammer Want Your Calls?
A fraudster may be interested in receiving your incoming calls because calls can contain banking verification conversations, customer-service interactions, account recovery calls, calls from family members, calls from businesses, and voice-based verification.
Call forwarding by itself does not automatically give a criminal access to your bank account or SMS OTPs — whether SMS messages are forwarded depends on the telecom service and the specific mechanism involved. A criminal may instead combine call forwarding with other stolen information, phishing, social engineering, SIM-related fraud, or account takeover techniques.
How the Call Forwarding Scam Works
The Most Dangerous Part: You May Not Notice
A SIM swap can produce an obvious symptom: your phone loses network connectivity. Call forwarding can be more subtle. Your phone may still have network coverage, make outgoing calls, connect to mobile data, and receive SMS — while incoming calls are being redirected according to the forwarding configuration.
That difference makes unauthorized call forwarding particularly difficult for an average user to notice.
Original Research Insight: The "Silent Compromise" Problem
Not every compromise breaks your phone. A SIM swap usually produces a visible disruption — "why has my phone suddenly lost network?" Call forwarding can produce a much less obvious change — "my phone is working normally, but someone else may be receiving my incoming calls." Some attacks change the way a service behaves while leaving the device apparently normal.
The Psychology Behind the Scam
Red Flags: How to Recognize a Call Forwarding Scam
TRAI has warned about fraudulent communications in which criminals impersonate TRAI officials and threaten mobile-number disconnection. TRAI states that it does not initiate communication with customers to disconnect mobile numbers, and advises consumers to verify such claims through their telecom service provider's authorized channels.
Call Forwarding vs SIM Swap
Both attacks target the way calls and messages reach you — but they work differently, and knowing which one you're facing changes what you should check first.
| Aspect | Call Forwarding Scam | SIM Swap Scam |
|---|---|---|
| What is targeted? | Incoming call routing | Mobile number / SIM |
| Does SIM necessarily stop working? | No | Usually yes |
| Can phone retain network? | Yes | Often no |
| Main warning sign | Unexpected call-routing change | Sudden loss of mobile service |
| Can it be combined with other fraud? | Yes | Yes |
Can Call Forwarding Steal Bank OTPs?
Not necessarily. Call forwarding primarily concerns voice calls — it does not automatically mean SMS OTPs will also be redirected. However, a fraudster may use call forwarding alongside phishing, stolen credentials, SIM-related fraud, or social engineering. Don't assume that because your SMS is still working, everything is safe.
How to Check Whether Call Forwarding Is Active
The safest approach is to use your telecom operator's official app, website, customer-care channel, or phone settings where supported. Do not rely on instructions received from an unknown caller.
Depending on your device and carrier, call settings may be available under Phone → Settings → Calling accounts / Calls → Call forwarding. The exact menu differs by Android version, manufacturer, and telecom provider. If you find an unexpected forwarding configuration, contact your telecom provider through an official channel and ask them to verify the status.
How to Protect Yourself
1. Never Follow Telecom Instructions From an Unsolicited Caller
If someone calls claiming to be from your telecom company, don't immediately follow instructions. Disconnect and contact the provider using the official number or app.
2. Don't Enter Unknown Codes
Treat unfamiliar USSD codes or telecom instructions like suspicious links. If you don't know what a code does, don't enter it.
3. Protect Your Personal Information
Don't disclose OTPs, banking passwords, UPI PIN, debit-card details, Aadhaar information, PAN details, or SIM information to unsolicited callers.
4. Don't Install Apps for "Verification"
A fraudster may ask you to install a remote-access or screen-sharing application. Be cautious about requests involving remote access.
5. Monitor Your Banking Accounts
Review transactions, login alerts, password changes, new beneficiary alerts, and UPI activity. Report suspicious activity immediately.
What to Do If You Suspect Unauthorized Call Forwarding
If money has already been lost, don't wait. In India, suspected financial cyber fraud should be reported immediately through the National Cyber Crime Reporting Portal or by calling 1930. For telecom-related suspicious communications, the Chakshu facility on Sanchar Saathi can also be used to report suspected fraudulent communications.
What the Government Has Already Done
In March 2024, India's Department of Telecommunications issued an order concerning misuse of USSD-based call forwarding. The order stated that USSD-based call forwarding services, commonly including *401# for unconditional call forwarding, were being misused, and directed telecom operators to discontinue the facility from 15 April 2024 until further notice. DoT also stated that subscribers who needed call forwarding could use alternative methods.
This is significant because it shows that telecom infrastructure itself can become part of a fraud chain.
Why TRAI Impersonation Scams Matter
Call forwarding fraud doesn't always begin with a message saying "activate call forwarding." It can begin with a completely different story. TRAI has warned about fraudsters impersonating the regulator and threatening consumers with mobile-number disconnection. Consumers are advised to independently verify such claims through their telecom service provider.
A caller's claimed identity is not proof of their identity.
How PaisaSafeX Can Help
PaisaSafeX is being designed around a simple principle: detect the warning signs before the scam becomes a financial loss.
Important
PaisaSafeX is designed to assist users in recognizing potential warning signs. It cannot guarantee detection or prevention of every call-forwarding attack, telecom fraud, or financial scam.
If someone unexpectedly calls you and says, "Enter this code to keep your SIM active," don't do it.
If someone says, "Your number will be disconnected unless you verify immediately," don't panic.
If someone says, "Don't disconnect this call," disconnect.
Then contact your telecom provider through an official channel.
Frequently Asked Questions
It is a scam in which criminals attempt to trick a victim into activating or maintaining unauthorized call forwarding so incoming calls can be redirected.
Potentially, as part of a broader fraud chain. Call forwarding alone does not automatically give someone access to a bank account, but it can be combined with stolen credentials and other social-engineering techniques.
Not necessarily. Call forwarding primarily handles voice calls. SMS forwarding depends on separate mechanisms and should not be assumed.
Yes. Depending on the type of forwarding configured, your phone may continue to have normal network connectivity and outgoing calling.
Check your phone's call settings or contact your telecom provider through an official channel. Menu options vary by device and carrier.
No. Telecom companies may legitimately contact customers. The warning sign is when an unsolicited caller pressures you to disclose sensitive information or perform unfamiliar technical actions.
The specific method depends on the telecom service and configuration. Criminals may attempt to manipulate victims into activating forwarding themselves rather than technically hacking the feature.
Don't enter an unfamiliar code based solely on a caller's instructions. Verify the request independently with your telecom provider.
No. SIM swapping moves your mobile number to another SIM/eSIM, while call forwarding redirects incoming calls according to a forwarding configuration.
Contact your telecom provider immediately, secure relevant accounts, contact your bank if financial information may be compromised, and report financial cyber fraud through 1930 or the National Cyber Crime Reporting Portal.
Final Thoughts
Call forwarding was created as a useful telecommunications feature. The problem isn't the technology. The problem is when criminals manipulate people into using legitimate technology for illegitimate purposes.
That is why awareness remains one of the strongest layers of protection. Your telecom settings are part of your digital security.
Don't blindly follow instructions from an unexpected caller. Don't enter unfamiliar codes. Don't share OTPs or banking information. And don't ignore suspicious changes to the way your phone behaves.
Pause. Verify. Protect.
About PaisaSafeX: PaisaSafeX is being developed to help people recognize and respond to digital financial-fraud risks. From call-forwarding scams and SIM swap attacks to phishing, fake customer-care numbers, OTP scams, UPI fraud, and other emerging threats, PaisaSafeX aims to put practical fraud awareness and early warning information in the hands of everyday smartphone users.
Official sources referenced: Department of Telecommunications (Call Forwarding Order) · TRAI (Fraudulent Calls Impersonating TRAI) · CERT-In (Preventing Online Scams) · National Cyber Crime Reporting Portal
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