Is FASTag smartwatch scam a reality? Paytm, NPCI clarify

New Delhi: An online video has gone viral asserting that the FASTag system, which uses scanners at toll booths and a special sticker on autos, is vulnerable. According to a video that is spread on WhatsApp, Twitter, and Facebook, some street kids are allegedly utilising a smartwatch with an integrated scanner that can read the FASTag stickers on cars. As a result, funds will be taken out of the FASTag account, which is connected to customers' banks or e-wallets like Paytm. The assertions made in the video are false, and Paytm has also posted a response to its social media accounts.

Two men are seen in the video talking with a little child who requests to wash their car. The young boy rapidly wipes the windshield, which is marked with a FASTag label, but he refuses to accept payment. One of the men begins pursuing the child once he discovers that he did not take any payment for the cleaning and that he is wearing a smartwatch. The individual who stayed in the car is now giving viewers an account of what happened because the chase was fruitless.

⁦@FASTag_NETC⁩ there is a video currently in circulation on scams involving scanning of fast tag and siphoning payments, is this true can you confirm? #cybersecurityawareness #cybersecurity pic.twitter.com/1L1uEDasT3 — Venkat Madala (@venky4a) June 18, 2022

According to the narrator, street kids are now using specialised smartwatches with built-in scanners that can read FASTag stickers, in this case, FASTag stickers made by Paytm. Money is deducted from their associated bank account or e-wallet once they hover the smartwatch over the sticker.

For those who are unaware, FASTags have spread widely in India to help with electronic toll collection. A tag called FASTag is installed on vehicles, and it is run by 23 banks under the supervision of NPCI and NHAI (National Highway Authority of India). By utilising Radio Frequency Identification (RFID) technology, it was created to do away with human intervention in the toll collection system.

Another factor contributing to its prevalence is the government's requirement that all commercial and private four-wheelers have FASTags in order to pay tolls at toll plazas. In February 2021, the regulation went into effect.

The NPCI has also published a statement, calling the claims "baseless."

Please note that there are baseless and false videos circulating on Social media. Do understand the below points:

1. No transactions can be executed through open internet connectivity. pic.twitter.com/AKqvcpVE1z — FASTag NETC (@FASTag_NETC) June 25, 2022

In a clarification, Paytm claimed that the video is fake and the FASTag technology cannot be compromised. The company tweeted, "A video is spreading misinformation about Paytm FASTag that incorrectly shows a smartwatch scanning FASTag. As per NETC [National Electronic Toll Collection] guidelines, FASTag payments can be initiated only by authorised merchants, onboarded after multiple rounds of testing. Paytm FASTag is completely safe and secure".

A video is spreading misinformation about Paytm FASTag that incorrectly shows a smartwatch scanning FASTag. As per NETC guidelines, FASTag payments can be initiated only by authorised merchants, onboarded after multiple rounds of testing. Paytm FASTag is completely safe & secure. pic.twitter.com/BmXhq07HrS — Paytm (@Paytm) June 25, 2022

Another factor contributing to its prevalence is the government's requirement that all commercial and private four-wheelers have FASTags in order to pay tolls at toll plazas. In February 2021, the regulation went into effect.