RBI urges public to be cautious of fraud in the name of KYC update

The Reserve Bank of India (RBI) on Friday asked the members of the public to be cautious of frauds executed in the guise of Know Your Customer (KYC) updation and advised them to take due care in protecting themselves from malicious practices.

The banking regulator issued the note of caution amid a surge in reports of customers falling prey to frauds committed under the name of KYC updation.

“In the wake of continuing incidents/reports of customers falling prey to frauds being perpetrated in the name of KYC updation, the RBI once again urges the members of the public to exercise caution and due care to prevent loss and safeguard themselves from such malicious practices,” the RBI said in a press statement.

The regulator asked customers to lodge a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or through the cybercrime helpline (1930) in case of financial cyber frauds.

Further, in the event of receiving any request for KYC updation, the RBI has asked the public to directly contact their bank or financial institution for confirmation or assistance and enquire with their bank branch to ascertain the modes that are available for updating KYC details.

Commenting on the modus operandi of such frauds, the RBI said it involves customers receiving unsolicited communication which creates a false sense of urgency by threatening account freezing or blocking or closure in case of non-compliance with these KYC norms.

The customers are thus manipulated to disclose their personal information like personal information, account or login details, or are made to install unauthorized or unverified applications through various links provided in these messages. The access to personal information results in the fraudsters engaging in fraudulent activities.

Do’s

In the event of receiving any request for KYC updation, directly contact their bank/financial institution for confirmation/assistance.

Obtain the contact number/customer care phone number of the bank/financial institution only through its official website/sources.

Inform their bank/financial institution immediately in case of any cyber fraud incident.

Enquire with their bank branch to ascertain available modes/options for updating KYC details.

Don’ts

Do not share account login credentials, card information, PINs, passwords, OTPs with anyone.

Do not share KYC documents or copies of KYC documents with unknown or unidentified individuals or organizations.

Do not share any sensitive data/information through unverified/unauthorized websites or applications.

Do not click on suspicious or unverified links received in mobile or email.