RBI Cautions Bank Customers About KYC Updation Frauds
Moneylife Digital Team 02 February 2024
In the wake of continuing incidents and reports of bank customers falling prey to frauds being perpetrated in the name of know your customer (KYC) updation, Reserve Bank of India (RBI) once again urged people to exercise caution and due care to prevent loss and safeguard themselves from such malicious practices.
 
In a release, RBI says, "The modus operandi for such frauds usually involves customers receiving unsolicited communications, including phone calls, SMS and emails, through which they are manipulated into revealing personal information, account or login details, or installing unauthorised or unverified apps through links provided in the messages. Such communications often employ tactics of creating a false urgency and threatening account freezing, blocking, and closure if the customer fails to comply. When customers share essential personal or login details, fraudsters gain unauthorised access to their accounts and engage in fraudulent activities."
 
In case of financial cyber fraud, bank customers should immediately lodge a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or through the cybercrime helpline 1930, the banking regulator says. 
 
Further, to safeguard themselves, RBI says, bank customers are encouraged to adopt the following measures:-
 
Do's
 
In the event of receiving any request for KYC updation, 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.
 
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.
 
For more details or additional information on the requirements and channels for updation/periodic updation of KYC, please read paragraph 38 of the RBI Master Direction on KYC dated 25 February 2016, as amended from time to time.
 
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 organisations.
 
Do not share any sensitive data/ information through unverified/unauthorised websites or applications.
 
Do not click on suspicious or unverified links received in mobile or email.
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