New Delhi | 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 Rs 8,550 crore (about USD 900 million) in the Indian fintech firm CRED, and appointing founder Kunal Shah as the new global head of the popular messaging platform.
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."
