On February 2, 2024, the Reserve Bank of India (RBI) reiterated its prior warning to the public, offering further suggestions in response to a rising tide of scams involving Know Your Customer (KYC) updates.
RBI amplified the cautionary tips issued earlier to the public on September 13, 2021, citing continuing incidents/reports of consumers falling victim to scams being perpetrated in the name of KYC updation.
Modus operandi
Customers typically receive unsolicited calls, texts, or emails requesting personal information, account or login credentials, or the installation of unapproved apps via links in the message.
Frequently, the messages intentionally instil a false feeling of urgency by threatening to freeze or close the customer's account if they don't cooperate. Customers provide fraudsters unauthorised access to their accounts and enable them to commit fraudulent operations when they divulge critical private details or login credentials.
Quick reporting
The Reserve Bank of India (RBI) advised victims of financial cyber fraud to report the incident right away on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by calling the cybercrime hotline in 1930.
Preventive measures
To prevent people from becoming victims of KYC fraud, the RBI published a list of dos and don'ts.
Critical data such as card details, PINs, passwords, OTPs, and account login credentials should never be shared with third parties, the RBI cautions the public.
Individuals are also advised not to click on dubious or unverified links they receive via email or mobile devices, nor share KYC documents with unrecognised or unknown parties. "Do not share any sensitive information through unverified/unauthorised websites or applications," the central bank advised.
For confirmation and help, get in touch with the bank or financial institution immediately when you get a request for KYC updates. Get phone numbers for customer service or contact information exclusively from the official website or other sources. Report any incidents of cyber fraud to the bank right away. Ask the bank about the possible ways to update your KYC information.
