RBI cautions public on KYC frauds

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The Reserve Bank of India has cautioned the public against the growing number of frauds in the name of HYC updation. It has advised people not to share documents with any unknown entities. The central bank has urged the the public to show caution and due care to prevent loss and safeguard themselves from such malicious practices.

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

It has advised the public not to share account login credentials, card information, PINs, passwords, OTPs with anyone. “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 said.

Further, it said such demands for KYC update create a false sense of urgency for the customer, where they are threatened of  power supply disconnection, freezing/blocking of account etc if the instructions are not complied with. “When customers share essential personal or login details, fraudsters gain unauthorized access to their accounts and engage in fraudulent activities,” it added.

On what should be done in the event of receiving any request for KYC updation, RBI said directly contact their bank/financial institution for confirmation/ assistance.

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

One should also inform the bank/ financial institution immediately in case of any cyber fraud incident. It also cautioned the public against clicking on suspicious or unverified links received in mobile or email.