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Updated February 2nd, 2024 at 20:19 IST

Reserve Bank of India issues warning against KYC fraud; urges public vigilance

Additionally, the RBI warned against disclosing sensitive account login credentials, card information, PINs, passwords, or OTPs to anyone.

Reported by: Business Desk
KYC fraud prevention
KYC fraud prevention | Image:Republic
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RBI advisory on KYC scams: The Reserve Bank of India (RBI) has issued a stern caution to the public, advising against fraudulent activities related to Know Your Customer (KYC) updates. In light of a rising number of incidents where customers have become victims of scams under the pretext of KYC updates, the RBI is urging individuals to exercise caution and due care to safeguard themselves from potential financial losses.

This is not the first time the central bank has raised an alarm concerning such fraudulent schemes. The RBI strongly emphasised the importance of refraining from sharing KYC documents or their copies with unknown or unidentified entities. Additionally, the RBI warned against disclosing sensitive account login credentials, card information, PINs, passwords, or One-Time Passwords (OTPs) to anyone.

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The typical modus operandi of these frauds involves customers receiving unsolicited communications, such as phone calls, SMS, or emails. Through these deceptive means, individuals are manipulated into divulging personal information, account/login details, or installing unauthorised or unverified apps via links provided in the messages.

The RBI highlighted that these fraudulent communications often employ tactics such as creating a false sense of urgency and threatening account freezing, blocking, or closure if the customer fails to comply with the demands.

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"When customers share essential personal or login details, fraudsters gain unauthorised access to their accounts and engage in fraudulent activities," cautioned the RBI.

In the event of receiving any request for KYC updates, the RBI advised individuals to directly contact their respective bank or financial institution for confirmation and assistance. It further recommended obtaining contact numbers or customer care phone numbers exclusively through official websites or reliable sources.

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Customers were also urged to promptly inform their bank or financial institution in case of any cyber fraud incident. The advisory concluded by cautioning the public against clicking on suspicious or unverified links received in mobile or email communications.

(With PTI inputs.)

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Published February 2nd, 2024 at 20:19 IST

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