RBI warns public on KYC frauds

RBI has asked members of the public not to respond to offers for getting their KYC (know-your-customer) details updated. The fresh warning comes in the wake of unscrupulous elements innovating their modus operandi for frauds, including social media techniques.

“Any phone call/email threatening the blocking of your account on the pretext of nonupdation of KYC and suggestion to click a link for updating the same is a common modus operandi of fraudsters,” the RBI said in its note on safe digital banking practices.

“Always access the official website of your bank/ NBFC/ e-wallet provider or contact the branch,” the note added.

Reiterating the warning against sharing one-time passwords (OTPs) or card details, the central bank highlighted vishing, phishing and remote access as some of the common measures used by fraudsters. Vishing refers to phone calls from fraudsters aimed at luring customers into sharing their confidential details for either KYC, account activation, unblocking SIM cards or crediting money to customer accounts. Phishing frauds involve spoofed emails or SMS aimed at duping customers into believing that it has originated from their bank or e-wallet provider to extract confidential details.

The other standard method is getting the customer to download an application for remote access on their mobile phones or computers to grant the fraudsters access. There have also been cases of the collect request feature of UPI being misused by sending fake collect requests and passing them off as payment messages.