Govt may seek to halt WhatsApp username rollout over scam concerns

The government is examining the legal framework and provisions in the law, as it scrutinises WhatsApp's proposed username feature, over fraud and impersonation concerns, according to sources.

The government is likely to send a notice to WhatsApp seeking full details about the features, questioning its implications and the company's plans. Law enforcement agencies may also examine the issue, an official said.

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, adding that the Meta-owned platform's latest announcement raises serious concerns.

Sources said officials will examine whether there are legal provisions to restrict the feature.

If WhatsApp's response is found to be unsatisfactory, the government may seek to prevent its rollout, they added.

"They cannot go ahead, unless they can assure and convince," the sources said, adding that WhatsApp, on its part, has indicated that this is a privacy tool.

An email sent to WhatsApp did not elicit a response.

Government sources said that the feature could allow users to adopt usernames resembling those of legitimate agencies, organisations or individuals, potentially enabling impersonation and fraud. This could, in turn, have adverse implications for public safety and society.

The government will not compromise on national security or public safety, they asserted.

Meta-owned messaging platform WhatsApp announced the introduction of usernames, a feature that will allow users to communicate without sharing their phone numbers.

The company has started early reservations for usernames, which will be officially rolled out later this year.

WhatsApp has around 500 million users in India, a significant market for the platform.

"Starting this week, you can reserve a username to use later this year when we launch this feature," WhatsApp said in a blog post.

According to the messaging platform, the move is aimed at enhancing user privacy, particularly in group chats or when connecting with new acquaintances by eliminating the need to exchange phone numbers.

However, several startup founders, cybersecurity professionals and technology experts have voiced concerns over the proposed feature on X, arguing that usernames resembling those of businesses, government agencies or public figures could be exploited for impersonation and financial scams if adequate safeguards are not put in place.

Paytm founder and CEO Vijay Shekhar Sharma has warned that lookalike usernames could become a major vector for impersonation and scams if not properly protected.

"Soon you will have a verified username on WhatsApp, and then unverified similar-sounding usernames….which in turn will…," he posted on X.

Jasveer Singh, co-founder and CEO of KnotDating, also flagged risks and, in a social media post, wrote: "Privacy matters. So does accountability".

On social media, people are raising questions on how the platform would verify identities and prevent misuse of prominent names.

Experts believe that the feature may create confusion by making it easier for fraudsters or scamsters to appear legitimate, by grabbing usernames that closely resemble bona fide brands or institutions.

Notably, WhatsApp recently got an Indian face at the helm, with tech giant Meta investing ₹8,550 crore (about $900 million) in the Indian fintech firm CRED, and appointing founder Kunal Shah as the new global head of the popular messaging platform.

(Except for the headline, Fortune India has not edited the content of this PTI report.)