RBI Issues Advisory Regarding KYC Updation Frauds
The Reserve Bank of India in a notification has said that despite informing the public about Know Your Customer (KYC) related fraud tactics, still there is a significant number of people falling prey to such fraudulent activities.
“In the wake of continuing incidents or reports of customers falling prey to frauds being perpetrated in the name of KYC updation, 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 stated.
The RBI has recently warned customers about frauds that involve unsolicited communications such as phone calls, SMS or emails. Fraudsters often use these communications to trick customers into revealing personal information, account or login details or installing unauthorised or unverified apps through links provided in the messages.
The central bank further stated that these fraudulent messages often create a false sense of urgency and threaten account freezing, blocking or closure if the customer fails to comply and once customers share their essential personal or login details, fraudsters gain unauthorised access to their accounts and engage in fraudulent activities.
RBI has suggesested a set of guidelines that the customers should follow incase they see these kind of suspicious activity. “If you receive any request for KYC updation, it is recommended that you directly contact your bank or financial institution for confirmation or assistance. Make sure to obtain the contact number or customer care phone number of your bank or financial institution only through its official website or sources. In case of any cyber fraud incident, inform your bank or financial institution immediately. To update your KYC details, enquire with your bank branch and ascertain the available modes or options for the same,” RBI stated.
In case of financial cyber fraud, the public should immediately lodge a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or through the cybercrime helpline (1930), the central bank advised.
"We’re seeing a lot of frauds happening where scammers try to get a customer’s personal information via platforms like Skype. The key point customers should be cognizant of here, is that for KYC updation or any such activity, they shouldn’t use any platform that does not originate from the bank’s official website. So someone asking you to come on Zoom, Skype or any other platform should be seen as a red flag," said Ashok Hariharan, CEO, IDFy.
RBI further added to not sharing one’s login details, card info, PINs, passwords or OTPs. Avoid sharing KYC documents with unknown individuals and sensitive data through unverified websites and never click on suspicious links in emails or messages, the central bank emphasised.
“The RBI underscores the importance of exercising caution to counter the rising incidents of KYC frauds and advocates for due diligence to prevent falling prey to fraudsters. The three pillars crucial for establishing digital trust include regulators, end-users, and businesses. The apex body is proactively spreading awareness and issuing guidelines to provide more clarity on the regulatory framework, fostering ethical practices, and enabling responsible innovation,” said Ankit Ratan, Chief executive officer (CEO) and co-founder, Signzy.
