RBI issues warning over fraud posing KYC updation, suggested measures

On Friday, the Reserve Bank of India issued a warning to the public about fraud posing as a KYC update and recommended against exchanging papers with unidentified parties.

The RBI advised the public to use caution and necessary care to prevent loss and protect themselves from such harmful acts in the light of ongoing incidences and reports of clients falling victim to scams being committed in the name of KYC updates.

“Do not share KYC documents or copies of KYC documents with unknown or unidentified individuals or organizations,” the statement said.

“The modus operandi for such frauds usually involves customers receiving unsolicited communications, including phone calls/SMS/emails, through which they are manipulated into revealing personal information, account/login details, or installing unauthorised or unverified apps through links provided in the messages,” it added.

RBI added that these kinds of messages frequently use deceptive tactics to instill a sense of urgency and threaten to freeze, block, or close an account if the recipient doesn’t cooperate.

“When customers share essential personal or login details, fraudsters gain unauthorized access to their accounts and engage in fraudulent activities,” it stated.

The RBI advised people to get in touch with their bank or financial institution immediately for clarification or assistance in the event that they get a request for a KYC update.

“Obtain contact number/ customer care phone number of the bank/ financial institution only through its official website/ sources,” the central bank mentioned in its statement.

The public was also advised not to click on dubious or untrusted links they received via email or mobile devices.