India Urges WhatsApp to Pause Username Feature Rollout Over Fraud Concerns

India has asked WhatsApp to hold off on rolling out its upcoming username-based chat feature, raising concerns that the update could make online fraud, phishing, impersonation, and digital arrest scams easier to carry out.

The proposed feature would allow WhatsApp users to connect and chat through unique usernames instead of sharing their phone numbers. While this could improve privacy for users, the Indian government has warned that it may also create new risks by allowing bad actors to contact people without revealing their phone identities.

According to a notice sent by the Ministry of Electronics and Information Technology, WhatsApp has been asked to explain why action should not be taken against the company under Indian law for introducing a feature that the government believes could increase cybercrime. The ministry has also asked WhatsApp not to roll out the feature until the government is satisfied after consultation.

WhatsApp, owned by Meta, has said that the feature is not live yet and will be introduced in phases later this year. The company also stated that it has built several safeguards to prevent misuse, including protections against impersonation, username guessing, and scam-related activity.

A Meta spokesperson said the company has reserved high-profile names, including those linked to public figures, celebrities, government entities, and verified Meta accounts, so that they can only be claimed by legitimate owners. The company has also blocked lookalike versions of known names to reduce the chances of identity spoofing.

WhatsApp further clarified that users would still need a phone number to create an account. The username feature would only provide an additional way to connect with people without publicly sharing that number.

The company said users would need to know the exact username before messaging someone. It also plans to limit how many new people an account can contact, prevent repeated attempts to guess usernames, and use detection systems to identify impersonation and suspicious behaviour.

To help users make safer decisions, WhatsApp said recipients would see details about first-time contacts, such as whether the sender is a new account, already in their contacts, part of shared groups, or located in another country.

India is WhatsApp’s largest market, with more than 850 million users. Any major change to the platform’s communication model is therefore likely to draw close attention from regulators, especially at a time when cyber fraud has become a major concern in the country.

Government data shows that cybercrime cases in India have been rising, with online fraud making up a large share of reported cases. Authorities fear that username-based communication could make it easier for fraudsters to hide their real identity, impersonate officials, banks, public agencies, or private individuals, and target unsuspecting users.

However, the government’s move has also drawn criticism from digital rights groups. The Internet Freedom Foundation said the notice lacks a clear legal basis and argued that the government cannot require prior approval for a software feature unless such power is clearly provided under law.

The organisation said that India’s Information Technology Act and related rules do not give the government authority to decide in advance which product features a company can or cannot launch.

The development comes amid increasing scrutiny of global technology companies in India. In recent months, the government has tightened rules around online content removal and taken stronger positions on platform accountability, user safety, and law enforcement access.

For WhatsApp, the challenge will be to balance user privacy with regulatory concerns around cyber safety. For India, the issue reflects a larger debate: how to encourage digital innovation while preventing new tools from being misused for fraud and impersonation.