RBI reiterates caution against KYC frauds
- The central bank advised never sharing account login details, card information, PINs, passwords, OTPs, or KYC documents with unknown parties or unverified organizations.
Mumbai: The Reserve Bank of India (RBI) on Friday reiterated its warning, urging people to maintain caution to avoid becoming victims of frauds disguised as KYC (Know Your Customer) updates.
This caution follows a similar advisory in September 2021, highlighting concerns over frauds related to KYC updates.
“In the wake of continuing incidents/reports of customers falling prey to frauds being perpetrated in the name of KYC updation, RBI once again urges the members of public to exercise caution and due care to prevent loss and safeguard themselves from such malicious practices,” the central bank said.
The modus operandi of such frauds, the RBI said, usually involves customers receiving unsolicited communications, including phone calls, SMS (short messaging service), emails, through which victims are manipulated into revealing personal information, account details, or installing unverified apps.
These messages often create a false sense of urgency, threatening account suspension or closure for non-compliance, leading customers to divulge sensitive personal or account access details. This enables the scammers unauthorized entry into accounts, leading to fraudulent transactions, the RBI explained.
The RBI said that in case of financial cyber frauds, people should immediately lodge a complaint on the national cyber crime reporting portal or through the cybercrime helpline.
Additionally, the regulator released a set of dos and don’ts to safeguard against such frauds. It said that when receiving any request for KYC updation, one should directly contact the bank or financial institution for confirmation. People should also obtain the contact number or customer care phone number of the financial institution only through its official website.
“(People should) inform their bank/ financial institution immediately in case of any cyber fraud incident (and) enquire with their bank branch to ascertain available modes/ options for updating KYC details,” it said.
The RBI advised never sharing account login details, card information, PINs, passwords, OTPs, or KYC documents with unknown parties or unverified organizations.
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First Published:2 Feb 2024, 06:06 PM IST
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