RBI Issues Warning Against KYC Fraud, Urges Public Vigilance-know More

 

Date: February 2, 2024

In a recent press release, the Reserve Bank of India (RBI) reiterated its caution to the public regarding fraudulent activities related to Know Your Customer (KYC) updation. The central bank emphasized the increasing incidents of individuals falling victim to scams and urged the public to exercise caution to prevent financial loss.

Key Points:

- Modus Operandi: Fraudsters often use unsolicited communications, such as phone calls, SMS, and emails, to manipulate individuals into revealing personal information or installing unauthorized apps. Tactics include creating false urgency and threatening account freezing.

- Immediate Action: In cases of financial cyber fraud, the RBI advises the public to lodge complaints on the National Cyber Crime Reporting Portal or contact the cybercrime helpline (1930) promptly.

Preventive Measures:

✅ Do’s:

1. Directly contact the bank for KYC updation requests.

2. Obtain contact information from official sources only.

3. Report cyber fraud incidents to the bank immediately.

4. Enquire with the bank for available KYC updation modes.

❌ Don’ts:

1. Avoid sharing account details, PINs, passwords, etc.

2. Refrain from sharing KYC documents with unknown entities.

3. Avoid sharing sensitive information through unverified sources.

4. Do not click on suspicious links in mobile or email communications.

The RBI encourages the public to stay vigilant and follow these guidelines to safeguard against potential fraud. For detailed information on KYC requirements, refer to the RBI Master Direction on KYC dated February 25, 2016.

For further details, please refer to the official press release issued by the Reserve Bank of India on February 2, 2024.