RBI cautions people against KYC updation fraud, shares Do’s, Don’ts

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New Delhi, Feb 02, 2024: The Reserve Bank of India (RBI) has cautioned people against fraud in the name of KYC updation amid increasing incidents of customers falling prey to fraud. 

The RBI in its notification has urged people to exercise caution and "due care to prevent loss and safeguard themselves from malicious practices".

How KYC Scam Takes Place

The RBI has listed the modus operandi scammers use to conduct such frauds. It usually involves customers receiving unsolicited communications, including phone calls/SMS/emails, through which they are manipulated into revealing personal information, and account/login details or installing unauthorized or unverified apps through links provided in the messages.

Scamsters use tactics of creating a false urgency and threatening account freezing/blocking or even closure if the customer fails to comply. When customers share essential personal or login details, fraudsters gain unauthorized access to their accounts and engage in fraudulent activities.

The Reserve Bank has urged people to report such incidents and immediately lodge a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or through the cybercrime helpline (1930).

The Do’s

To prevent KYC fraud, the RBI has shared some Do’s and Don’ts for customers to prevent such incidents leading to financial fraud.

* Directly contact their bank/ financial institution for confirmation/ assistance in the event of receiving any request for KYC updation.
* Obtain the 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.

The Don’ts

* Do not share account login credentials, card information, PINs, passwords or 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 like Aadhar Card, PAN Card, Driving License etc, through unverified/unauthorized websites or applications.
* Do not click on suspicious or unverified links received in mobile or email.

The Delhi Police said around 200 people are falling victim to cyber fraud every day, a worrying trend, which is not isolated to the national capital. Several incidents of cyber fraud are reported every day across the country.

Cyber crooks are targeting around 200 people daily in the national capital, swindling their money with different modus operandi, a senior Delhi Police officer who has been investigating cyber crimes said.

The officer said the fraudsters in and around Delhi are using sextortion, work from home, online hotel booking, and online resale, among other tricks to dupe the victims, whereas the gangs operating from Jharkhand and Bihar are using scams such as KYC expiry, Android banking malware to siphon money from gullible individuals.

The Director of the Indian Cyber Crime Coordination Centre (I4C) had recently said that over ₹ 10,300 crore was siphoned off from the country by cybercriminals since April 1, 2021, of which the agencies managed to successfully block around ₹ 1,127 crore in the country.

Over 4.52 lakh cyber crime cases were reported on the National Cybercrime Reporting Portal (NCRP) in 2021, which rose by 113.7 per cent in 2022, with 9.66 lakh cases being reported on the portal, I4C Director Rajesh Kumar said.