WhatsApp App Username Feature Faces Government Scrutiny Over Fraud Risks in India

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WhatsApp has formally responded to a government notice questioning its planned username feature, according to sources who spoke to news agency PTI on Thursday. The Ministry of Electronics and Information Technology confirmed it is now examining the reply submitted by the Meta-owned platform. The notice, issued on July 1, had asked the WhatsApp app to explain why regulatory action should not be taken over concerns that the feature could fuel cybercrime. With roughly 500 million users in India, any change to how the WhatsApp app handles identity and privacy carries significant weight for the country’s digital ecosystem.

Government Notice Prompts Response From Meta-Owned Platform

The dispute centers on a proposed update that would allow people using the WhatsApp app to connect using a chosen username rather than sharing their phone number. Officials at MeitY had earlier pressed the company to explain the safeguards built into this system before any public rollout. WhatsApp had previously assured the ministry that it would not launch the feature in India until consultations were completed to the government’s satisfaction. That commitment appears to have shaped the timeline of the current exchange between the company and regulators.

What The Username Feature Would Change

Under the proposed system, contacts on the WhatsApp app could be added and messaged without either party ever seeing the other’s mobile number. Supporters of the idea argue it protects user privacy in an era of frequent data leaks and unsolicited contact. Critics inside the government worry it could remove a key identity marker that currently helps trace bad actors on the platform.

Read more: WhatsApp Usernames Rollout Paused in India

Officials Cite Fraud And Impersonation Concerns

The Centre’s main concern is that anonymity via a username could make it easier for scammers to operate undetected on WhatsApp. Several categories of digital crime were specifically flagged in the government’s communication with the company. These concerns echo broader anxieties Indian authorities have raised about messaging platforms in recent months.

Officials pointed to a range of risks they believe the feature could amplify, including:

  • Phishing attempts disguised as trusted contacts
  • Digital arrest scams targeting vulnerable users
  • Impersonation of officials, relatives, or businesses
  • Identity theft linked to hidden phone numbers
  • General difficulty tracing fraudulent accounts

Legal Basis For The Notice

The government’s notice reminded the company that the WhatsApp app qualifies as a significant social media intermediary under Indian law. That status brings specific due diligence obligations, including cooperation with authorities regarding user safety concerns. Failure to adequately address these obligations could expose the platform to action under the Information Technology Act.

Telegram and Signal are also under scrutiny

WhatsApp is not the only messaging service facing questions from Indian regulators this month. MeitY sent similar notices to Telegram and Signal on July 3, targeting username-based messaging systems already active on those platforms. The ministry asked both companies to detail the protections they have in place against impersonation and fraud.

Different Timelines For Each Platform

IT Secretary S Krishnan noted that WhatsApp’s reply was expected on Thursday, while Telegram and Signal had been given additional time to respond. Officials said those two companies had not yet submitted their replies as of this week. The staggered deadlines mean the government’s review of username features across platforms will likely unfold in phases rather than all at once.

Illustration of the WhatsApp app with Telegram and Signal under regulatory review, highlighting cybersecurity, identity verification, and government scrutiny of username-based messaging features.

Wider Regulatory Pressure On Meta And Telegram

The username notice arrives alongside other regulatory actions targeting the same companies. Meta recently received a separate notice concerning child sexual abuse material appearing in Instagram advertisements. Telegram, meanwhile, was directed to address the widespread circulation of pirated films and other copyrighted audio-visual content on its platform. Together, these actions suggest Indian regulators are taking a broader look at how major messaging and social platforms manage user safety.

What Happens Next For The WhatsApp App Rollout

MeitY has not indicated a specific date by which it will complete its review of WhatsApp’s submission. Until that assessment concludes, the company’s earlier assurance means the username feature will not go live for Indian users. Attention now shifts to whether Telegram and Signal submit their own responses in the coming days, which could shape the government’s approach to username-based messaging across the industry.

User Concerns Grow Over Data Privacy Trade-Offs

Many people using the WhatsApp app wonder what a username system means for daily privacy once it launches. Removing phone numbers as the primary identifier could reduce unwanted contact from strangers, but researchers note fraudsters quickly adapt to similar systems elsewhere, using copycat usernames to impersonate real contacts. Financial security experts point out that many scam calls already rely on caller ID spoofing rather than phone numbers, so a username-based WhatsApp app would not eliminate that risk. Verification badges or stricter registration rules could help offset these concerns if the feature is eventually approved by regulators.