RBI cautions against KYC related frauds | India Business News – Times of India

by The Technical Blogs


MUMBAI: The RBI has cautioned the public against ongoing frauds perpetuated under the guise of know your customer updation.
The central bank said that anyone who has fallen victim to frauds should immediately complain through the cybercrime helpline (1930) or on the National Cybercrime Reporting Portal (www.cybercrime.gov.in). RBI has also issued a list of dos and don’ts.
This is the second time the central bank has issued such a warning.In 2021, RBI issued a note following a surge in online KYC frauds during the Covid lockdown, where customers were duped into revealing their banking credentials for KYC purposes.

During the pandemic, fraudsters saw an opportunity after many banks issued notices warning customers that they may not get to use their accounts before the deadline of Dec 2021. RBI subsequently eased the deadline as well as the KYC process.
In KYC frauds, scammers often use unsolicited communication like calls, texts, or emails to trick customers into sharing personal details, account/login information, card details, PIN or OTP, RBI said.
Fraudsters also ask customers to install unauthorised/unverified apps for KYC updates using a link in the message. These messages might threaten to freeze, block, or close the account. If the customer shares information through these methods, fraudsters can access the customer’s account and carry out fraudulent activities, RBI added.
“Such communications often employ tactics of creating a false urgency and threatening account freezing/blocking/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,” RBI said.





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