WhatsApp's username feature under government scrutiny for fraud risks

The government is examining the legal framework governing WhatsApp's proposed username feature amid concerns that it could facilitate impersonation, fraud and other public safety risks, official sources said.

According to the sources, the Centre is likely to issue a notice to the Meta-owned messaging platform seeking details of the feature, its safeguards and its potential implications. Law enforcement agencies are also expected to examine the proposal.

Government sources said authorities would assess whether existing legal provisions allow restrictions on the feature if it is found to pose risks to users.

"The government, as the statutory authority, will have to satisfy itself that the feature does not pose risks, given the legitimate concerns surrounding it," a source said.

If WhatsApp's response is found to be unsatisfactory, the government may consider preventing the rollout of the feature, the sources added.

"They cannot go ahead unless they can assure and convince," a source said, adding that WhatsApp had described the feature as a privacy tool.

An email sent to WhatsApp seeking comment did not receive a response.

The proposed feature would allow users to communicate using usernames instead of sharing their phone numbers. According to government sources, this could enable people to adopt usernames resembling those of government agencies, businesses, public institutions or prominent individuals, potentially facilitating impersonation and financial fraud.

Officials said the government would not compromise on national security or public safety while examining the proposal.

WhatsApp, which has around 500 million users in India, announced this week that users could begin reserving usernames ahead of the feature's official rollout later this year.

In a blog post, the company said the feature was designed to enhance user privacy, particularly in group chats and conversations with new contacts, by eliminating the need to share phone numbers.

However, the announcement has drawn criticism from several entrepreneurs and cybersecurity experts.

Paytm founder and Chief Executive Officer Vijay Shekhar Sharma warned that similar-looking usernames could become a major avenue for impersonation and scams if adequate verification mechanisms were not introduced.

Jasveer Singh, co-founder and Chief Executive Officer of KnotDating, also questioned the proposal, saying privacy should not come at the cost of accountability.

Technology experts have also raised concerns about how WhatsApp intends to verify identities and prevent misuse of usernames associated with brands, public institutions and well-known personalities.

The development comes shortly after Meta appointed CRED founder Kunal Shah as WhatsApp's global head following the company's investment of Rs 8,550 crore (around USD 900 million) in the Indian fintech firm.