Scam Alert: RBI Warns Against Frauds In The Name Of KYC Updation

NEW DELHI: In view of increasing cyber crime in India, the Reserve Bank of India (RBI) issued a public warning about Know Your Customer (KYC) document fraud on Monday.

The central bank warned against disclosing account login information, personal information, copies of KYC documents, card information, PIN, password, OTP, and other sensitive information to unknown individuals or agencies.

Furthermore, such information should not be shared through unverified or unauthorised websites or applications, according to the RBI.

“In the event that they receive any such requests, customers are advised to contact their bank/branch,” the RBI stated.

The RBI advisory comes in the wake of numerous complaints and reports of customers falling victim to frauds perpetrated in the name of KYC updation.

MODUS-OPERANDI

In explaining the nature of such frauds, the RBI stated that the typical mode of operation in such cases includes the customer receiving unsolicited communication, such as calls, SMSs, emails, and so on, urging him or her to share certain personal details, account / login details/ card information, PIN, OTP, and so on, or installing some unauthorised/ unverified application for KYC updation using a link provided in the communication.

Such communications have also been reported to include threats of account freezing, blocking, or closure. The RBI stated that when a customer shares information over a call/message/unauthorized application, fraudsters gain access to the customer’s account and defraud him/her.

WHAT TO DO:

Customers should contact their bank/branch if they receive any requests for sharing details such as account login, personal information, copies of KYC documents, and so on.

The RBI also stated that, while Regulated Entities (REs) are required to conduct periodic KYC updates, the process of doing so has been simplified to a large extent in a circular dated May 10, 2021.

Further, through a circular dated May 5, 2021, the Regulated Entities were “advised that in respect of customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc,” RBI said.