New Delhi | The Centre on Wednesday issued a notice to Meta regarding the controversial username feature on WhatsApp in India due to concerns about impersonation and fraud, and warned the platform not to roll it out until consultations on the issue are completed "to the satisfaction of the Government".
It has also directed Meta to furnish a detailed explanation on the username feature, backed by relevant documents, within three days.
In the notice, the government expressed concern that the WhatsApp username feature may "materially increase" cases of online fraud, phishing, digital arrest scams, and impersonation attacks by enabling bad actors to solicit and message victims.
It has asked Meta to explain why action shouldn't be initiated under IT Act and rules over WhatsApp's new feature that may increase cybercrimes.
The Centre has also reminded Meta that WhatsApp, as a significant social media intermediary, is bound by due diligence obligations under the IT Act and rules.
WhatsApp, in a statement on Wednesday, defended the feature, citing built-in safeguards to prevent scams and impersonations and protect users.
India is WhatsApp's largest market, with more than 500 million users.
"It is felt that the feature may materially increase the incidence of online fraud, phishing, digital arrest scams and impersonation attacks, by enabling bad actors to solicit and message victims.
"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," said the notice addressed to Chief Compliance Officer, WhatsApp India Operations.
The notice cited provisions of the Information Technology Act and the IT Rules, 2021, including Section 79 on intermediary due diligence obligations, portions of rules 3 and 4 governing intermediary responsibilities and lawful identification of the first originator of messages, as well as Sections 66C and 66D that deal with identity theft and cheating by impersonation using computer resources.
It also referred to intermediary liability under Section 79(3)(a) of the IT Act for aiding, abetting or inducing unlawful acts.
"In this regard, you are directed to furnish a detailed explanation, supported by relevant documents, on this new feature, within three days of its receipt," it said.
The notice also directed Meta not to roll out WhatsApp's new feature until the consultation on this point is achieved "to the satisfaction of the Government".
A WhatsApp spokesperson said the ability to use a username is not yet live and will roll out slowly later this year.
"To protect against impersonation, we’ve held the highest-profile names - think public figures, government entities, celebrities, verified Meta accounts - so they can only ever be claimed by their legitimate owners and lookalike derivatives of known names are held as well," a WhatsApp spokesperson said.
Users still require a phone number to use WhatsApp, Meta said and added that it has built multiple layers of defence against scams into usernames.
"Other users need to know the exact username to message you. We will limit how many new people an account can contact, block repeated attempts to guess someone’s username key, and have systems to detect and remove activity showing common impersonation and abuse patterns," the company said.
WhatsApp will show whether a first-time sender is a new account, contact, mutual group member or from another country before users respond.
"When the feature becomes available, and someone sends a message for the first time via your username, we will show you if they're a new account, if they’re your contact, if you have groups in common, and if they’re based in a different country, so you can decide whether to respond," WhatsApp said.
Earlier in the day, government sources indicated that authorities would also examine the legal framework governing the feature and whether existing laws provide for restricting its rollout if it is found to pose risks to public safety or national security.
WhatsApp plans to introduce a username later this year, allowing users to communicate without sharing their phone numbers. The Meta-owned messaging platform has maintained that the feature is designed to enhance privacy, particularly in group chats and interactions with new contacts.
WhatsApp had already begun allowing users to reserve usernames.
The notice to the tech giant comes amid widespread concerns over the feature, with cybersecurity experts and startup founders warning that lookalike usernames could be exploited unless robust verification and anti-impersonation safeguards are introduced.
Paytm founder and Chief Executive Vijay Shekhar Sharma said on X that similar-sounding usernames could become a vector for impersonation and scams.
Jasveer Singh, co-founder and Chief Executive of KnotDating, also questioned how the platform would balance user privacy with accountability.
New Delhi | WhatsApp's proposed username feature has raised concerns among experts and users, who believe the new offering could trigger a surge in impersonation, spoofing, and financial fraud.
Analysts caution that moving to platform-managed identities removes a crucial layer of accountability. Some users, like MobiKwik CEO Bipin Preet Singh, found that close variations of their names were already taken up during the early username reservation phase.
The concerns come in the wake of WhatsApp’s announcement of the introduction of usernames on the messaging platform, a feature that will allow people to communicate without sharing their phone numbers.
The company has opened early reservations for usernames, which will be officially rolled out later this year.
WhatsApp said 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.
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 and question its implications and the company's plans. Law enforcement agencies may also examine the issue, an official said.
WhatsApp’s latest move has also triggered widespread concerns.
Faisal Kawoosa, Chief Analyst and Founder at Techarc, noted that while phone numbers offer a layer of verification, usernames can be misleading.
"While celebrity names have been reserved, it's still easy to impersonate, and we have seen how verified accounts have worked on X. Fraudsters can easily use some variations which commoners won't be able to catch easily," Kawoosa said, adding that public trust in WhatsApp as a safe platform for communication is likely to decline.
Calling the feature "both a boon and a bane", Abhilash Kumar, Lead Research Advisor at Smart Analytics Global, said it will reduce the chances of ending up
on spam lists.
"Users will no longer need to share their primary contact number for every business discussion or negotiation, helping protect their privacy and reducing the chances of ending up on cold-calling or spam lists."
However, he warned that it could dilute identity authenticity.
"WhatsApp should internally map usernames to the underlying phone number and
introduce robust identity verification mechanisms," he suggested.
Nikhil Narendran, Partner (TMT) at Trilegal, noted that while reserving handles may protect celebrities, the larger challenge is protecting ordinary users and small businesses.
"Trust is shifting from a visible telecom identifier to a platform-managed identity. Banks and businesses will need to rely more on verified business accounts, in-app verification, digital signatures and customer education, rather than assuming that a phone number is sufficient proof of identity," Narendran said.
Users may assume a familiar-looking username is genuine without noticing subtle variations, substantially increasing the chances of spoofing.
Prachir Singh, Senior Analyst at Counterpoint Research, pointed out that the feature reduces a simple layer of accountability, as users can no longer verify someone's identity by simply calling their number.
"Although WhatsApp has introduced safeguards such as the optional username key and reserved usernames for public figures, lookalike usernames and impersonation will remain challenges. Going forward, stronger impersonation detection and more visible verified accounts will be essential, especially for banks, businesses, and government agencies," Singh added.
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.
Prominent Indian startup founders and public figures also took to social media
platform X to express concerns regarding the potential for abuse of the feature.
MobiKwik CEO Bipin Preet Singh strongly opposed the update, calling it "not a
good idea at all".
He noted that it would lead to a proliferation of fraud and impersonation, revealing that most variations of his own name were already taken during the early reservation phase.
Author and entrepreneur Ankur Warikoo warned that the feature could be a
"disaster" in India if the right anti-abuse systems are not established.
Highlighting how scammers could use subtle variations of a username to solicit money, Warikoo said, "Most people don't understand verified status... So, forgive me, if from a public figure's standpoint, this feature raises some serious concerns".
Rajeev Mantri, founder and Managing Partner of Navam Capital, called it a "colossal data harvesting and data pooling scheme".
"Meta's objective is to get you to link social accounts across WhatsApp and Instagram to move the needle on ad targeting and thus improve engagement and revenues. They are playing on consumers’ FOMO to quickly grab the username of choice. Clever."