RBI cautions against fraud in the name of KYC Updation

The Reserve Bank of India (RBI) had cautioned members of the public against fraud in the name of KYC updation. RBI also released a Press Release regarding this in Sep 2021.

In light of ongoing incidents/reports of customers falling victim to frauds perpetrated in the guise of KYC updation, the RBI once again asks members of the public to exercise vigilance and necessary care to avoid loss and protect themselves from such harmful acts.

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 unauthorized or unverified apps through links provided in the messages.

Such communications frequently use strategies to create a false sense of urgency and threaten account freezing/ blocking/ closure if the customer fails to cooperate. When customers reveal sensitive personal or login information, fraudsters obtain unauthorised access to their accounts and engage in fraudulent activity.

In case of financial cyber fraud, members of public should immediately lodge a complaint on the National Cyber Crime Reporting Portal (or through the cybercrime helpline (1930). Further, in order to safeguard themselves, members of the public 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 information on the requirements and channels for KYC update/periodic update, please see paragraph 38 of the RBI Master Direction on KYC dated February 25, 2016, as revised 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 organizations.
• Do not share any sensitive data/ information through unverified/unauthorized websites or applications.
• Do not click on suspicious or unverified links received in mobile or email.