Government Asks WhatsApp to Delay Username Feature Over Fraud Concerns

India's IT ministry has issued a formal notice directing WhatsApp not to roll out its new usernames feature until consultations conclude, warning it could fuel impersonation and digital arrest scams — while Meta defends it as a privacy upgrade.

By Naina, 1st July 2026

The Indian government has asked WhatsApp to delay the rollout of its new username feature over concerns it could fuel online fraud, issuing a formal notice to the Meta-owned platform. The Ministry of Electronics and Information Technology directed WhatsApp not to launch the feature in India until consultations are completed, and sought a detailed explanation within three days. The ministry warned that allowing users to communicate through usernames rather than phone numbers could materially increase phishing, impersonation, and so-called digital arrest scams. WhatsApp, which announced the feature days earlier as a privacy upgrade, said it is not yet live and will roll out gradually. The standoff highlights a growing tension between platform privacy features and cybercrime concerns in one of WhatsApp's largest markets.

The move is notable as one of the first instances of the Indian government asking a technology company to pause a major consumer feature before its public rollout on cybersecurity grounds. It reflects mounting official concern over a surge in impersonation-based fraud, even as WhatsApp and digital-rights advocates argue the feature enhances user privacy and that regulating product design oversteps. The dispute pits legitimate anti-fraud objectives against privacy protections and questions of regulatory reach. Here is what the feature involves, why the government is worried, how Meta and its critics have responded, and how the standoff might be resolved.

The Notice

The government acted swiftly. Within roughly 48 hours of WhatsApp announcing the feature, the IT ministry sent a formal notice to the platform's chief compliance officer for India, directing it not to roll out usernames in the country and demanding a detailed explanation within three days. The ministry invoked the Information Technology Act and the intermediary guidelines rules, questioning why regulatory action should not be initiated, and said the feature must not launch until consultations with authorities conclude. Officials indicated they are examining both the feature's security design and the surrounding legal framework, and warned that further regulatory or legal action could follow if serious concerns remain unaddressed.

The Feature

At issue is a change to how WhatsApp identifies users. Announced as a privacy upgrade, the feature would let users reserve a unique username and eventually start conversations using that handle instead of sharing their phone number, with an optional additional security key. Once active, a recipient's mobile number would no longer be visible to someone contacting them for the first time. WhatsApp has stressed that the feature is not yet live anywhere for public use and will roll out gradually later in the year as part of a phased global launch. The company frames it as giving users more private, optional ways to be reached without exposing personal contact details.

The Government's Concerns

The ministry's objections centre on fraud. It warned that reducing reliance on verified phone numbers could make it easier for cybercriminals to impersonate individuals, businesses, financial institutions, and government agencies, materially increasing online fraud, phishing, and impersonation attacks. A particular worry is that fraudsters could register usernames closely resembling those of banks, government departments, companies, or well-known individuals, then use them to run fake customer-support scams, investment frauds, and phishing schemes. Officials argued that hiding phone numbers during first contact removes one of the simplest ways users currently verify who is reaching out to them, weakening a key safeguard against deception in a market plagued by such scams.

The Digital Arrest Scam

Central to the government's fears is the digital arrest scam. This rapidly spreading fraud sees criminals impersonate police, investigators, judges, or customs officials, using intimidation to extort money from victims, who have ranged from ordinary citizens to senior figures, with losses running from thousands to crores of rupees. Authorities worry that usernames mimicking official identities could make such impersonation easier and more convincing. India has seen a sharp rise in cyber fraud in which scammers pose as officials, bank employees, or customer-care agents across messaging platforms. Officials therefore view the username feature not merely as a privacy update but as a potential amplifier of an already serious and growing cybercrime problem.

The Traceability Issue

A further concern involves law enforcement. Officials argue that if phone numbers are no longer the primary identifier at first contact, investigators lose one of their most reliable tools for quickly determining whether a suspect is based in India or abroad. This traceability, they contend, is important for tackling cross-border fraud. WhatsApp has noted that every account remains internally linked to a verified mobile number, meaning identities can still be established through proper channels. The government, however, wants clarity on how quickly fake accounts can be traced, how impersonation complaints will be handled, and whether the platform's anti-abuse systems are robust enough to prevent misuse before the feature reaches Indian users.

Meta's Defence

WhatsApp has defended the feature as pro-privacy. The company argues that letting people connect without sharing phone numbers reduces risks such as SIM-swap attacks and the harvesting of numbers from group chats, giving users more control over how they are contacted, and stresses that the feature is entirely optional. It has also said it proactively reserves usernames for public figures, government entities, and verified organisations, so that only legitimate owners can claim official-looking handles, addressing one dimension of the impersonation concern. Meta reiterated that the feature has not been activated for public use anywhere and will be introduced slowly, positioning it as a net gain for user privacy rather than a fraud risk.

The Overreach Debate

Critics argue the government is overreaching. Digital-rights advocates contend that the safe-harbour provision the ministry invoked governs intermediary liability and is not a power to dictate which features a platform may offer, warning against turning due-diligence rules into a de facto licensing regime for product design. Some commentators argue that companies should not have to seek government approval before launching features, especially privacy-enhancing ones, and that usernames can protect vulnerable users, including women, by shielding their phone numbers. They urge authorities to combat fraud by enforcing criminal law against offenders rather than restricting platform functionality. This camp frames the intervention as a worrying precedent for state control over technology design.

The Path Forward

Several compromises could resolve the standoff. Analysts suggest Meta might agree to keep phone numbers visible for first-contact messages in India, reserve a broader set of institutional and official usernames for verified entities only, or offer law enforcement a dedicated mechanism to obtain the phone number behind any username upon a valid legal request. Such measures could address the government's fraud and traceability concerns while preserving the feature's privacy benefits. The outcome will depend on the consultations now expected between Meta and the authorities. The episode echoes earlier government actions against platforms over identity-concealing features, suggesting officials are increasingly focused on how platform design intersects with cybercrime enforcement.

The Road Ahead

The dispute over WhatsApp's username feature captures a broader global tension between privacy and security in messaging platforms. India's intervention, unusual for targeting a feature before its rollout, reflects the seriousness with which authorities view the country's cyber-fraud epidemic, even as it raises questions about regulatory reach over product design. Much now rests on the consultations ahead and whether Meta offers safeguards sufficient to satisfy the government without gutting the feature's privacy purpose. How the standoff is resolved could shape not only WhatsApp's offering in a key market but also the wider relationship between the state and technology platforms over who decides how digital products are built and deployed.

Frequently Asked Questions

What has the government asked WhatsApp to do?
India's IT ministry issued a formal notice directing WhatsApp not to roll out its new username feature in the country until consultations are completed, and sought a detailed explanation within three days over concerns the feature could fuel fraud.

What is the WhatsApp username feature?
It would let users reserve a unique username and eventually start conversations using that handle instead of sharing their phone number, with an optional security key. WhatsApp says it is not yet live and will roll out gradually later in the year.

Why is the government concerned?
Officials warn the feature could increase impersonation, phishing, and digital arrest scams by letting users hide phone numbers, making it easier for fraudsters to mimic banks, agencies, or individuals, and harder for people to verify who is contacting them.

How has Meta responded?
WhatsApp defends the feature as a privacy upgrade that is entirely optional and reduces risks like SIM-swap attacks, and says it proactively reserves usernames for public figures, government entities, and verified organisations to prevent impersonation.

What could resolve the standoff?
Possible measures include keeping phone numbers visible for first contact in India, reserving official usernames for verified entities, or giving law enforcement a mechanism to obtain the number behind a username on valid legal request, subject to consultations.