New Delhi: The Central Government on July 1 issued a notice to Meta seeking an explanation over the proposed rollout of the "usernames" feature on WhatsApp in India, expressing concerns that the feature could significantly increase cyber fraud, phishing and impersonation-related crimes.
In the notice, the government stated that the proposed feature may "materially increase the incidence of online fraud, phishing, digital arrest scams and impersonation attacks" by allowing malicious actors to contact users through usernames instead of relying solely on phone numbers.
The government further warned that the feature could facilitate identity spoofing by enabling bad actors to adopt usernames that closely resemble those of genuine individuals, public authorities, financial institutions and government agencies. Such impersonation, it said, could make it easier to deceive users and carry out financial and cyber fraud.
"Furthermore, this feature may facilitate impersonation and identity spoofing, including impersonation of individuals, public authorities, financial institutions, and government agencies, by permitting the adoption of usernames closely resembling those of genuine persons or institutions," the notice stated.
The Centre has asked Meta to explain why regulatory action should not be initiated for launching a feature that may lead to an increase in cybercrime.
According to the notice, the company has been directed to explain why action should not be taken under the Information Technology Act, 2000, the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, and other applicable laws.
Meta has also been asked to submit a detailed explanation, along with relevant supporting documents, regarding the proposed feature within three days of receiving the notice. They have also been directed not to roll out this feature until consultations on the issue are completed to the satisfaction of the Government.
The development comes amid growing concerns over the rising number of cyber frauds in India, including phishing scams, impersonation attempts and so-called "digital arrest" frauds, prompting authorities to closely scrutinise new digital features that could potentially be exploited by cybercriminals.