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The Reserve Bank of India (RBI) has once again cautioned the public about rising incidents of fraud being carried out under the pretext of Know Your Customer (KYC) updation. RBI had earlier warned consumers through a press release on September 13, 2021, but recent reports show that many customers continue to fall victim to such scams.
According to RBI, fraudsters typically contact individuals through unsolicited phone calls, SMS or emails, claiming that their bank accounts will be blocked, frozen or closed unless they update their KYC details immediately. By creating a false sense of urgency, they manipulate customers into revealing personal or login information or into installing unverified applications sent via links. Once the fraudsters obtain this sensitive information, they gain unauthorized access to accounts and carry out fraudulent transactions.
RBI has advised that any instance of financial cyber fraud should be reported immediately on the National Cyber Crime Reporting Portal or via the helpline 1930. The central bank also urges the public to remain vigilant, avoid sharing confidential information, and verify any KYC-related communication directly with their bank or financial institution.
The advisory emphasizes caution and awareness as the most effective tools for preventing such frauds and protecting personal financial information.
[RBI]