Government Halts WhatsApp Username Feature Over Fraud Risks

The Indian government has directed Meta to halt the roll-out of the new 'username' feature on WhatsApp due to concerns regarding identity theft and impersonation. Senior officials from the Ministry of Home Affairs and the Ministry of Electronics and IT have requested a detailed explanation from the company. The government intends to conduct a comprehensive risk assessment to determine if the feature aligns with current legal frameworks and consumer protection standards in India.

The core of the official concern lies in the potential for bad actors to claim usernames mimicking prominent public figures, institutions, and organizations. Officials argue that such accounts could facilitate digital scams, similar to the 'digital arrest' fraud cases previously observed in the country. While WhatsApp claims to have built internal safeguards to prevent look-alike names and protect user privacy, authorities fear that even with these measures, the feature poses an unacceptable risk to users who may not be digitally sophisticated.

The company previously announced that the username feature was designed to enhance privacy by allowing users to hide their phone numbers. WhatsApp maintains that it has implemented multiple layers of defense and will hold high-profile usernames for legitimate owners. Despite these assurances, domestic tech leaders like Vijay Shekhar Sharma and Bipin Preet Singh have voiced strong opposition, warning that look-alike accounts will inevitably lead to a surge in fraud. The feature's future now remains subject to the outcome of government consultations, with the platform directed to suspend any activation until a final decision is reached.