RBI cautions public on rising KYC fraud
Hyderabad The Reserve Bank of India (RBI) in its tweet and followed by a statement on Monday cautioned people against bank fraud related to know your customer (KYC) documentation. The statement came after the apex bank saw recent surge in fraudulent activities and complaints pouring in regarding the same.
The top bank said that members of the general public should not share certain personal details such as login information, card details, PIN number or even one-time passwords (OTP) to strangers or anyone who's not in belief of you. It ordered people to be always attentive on sharing such sensitive information.
RBI said: "The usual modus operandi in such cases include receipt of unsolicited communication, such as calls, SMSs, emails, etc., by customer urging them to share certain personal details, account, login details, card information, security PIN, OTP, etc. or install some unauthorised or unverified application regarding KYC update using a link provided in the communication. Such communications are also reported to carry threats of account freeze, block or closure. Once customer shares information over a call, message, or in an unauthorised application, fraudsters would get access to customer's account and can defraud them."
"The Regulated Entities (REs) are required to undertake periodic updation of KYC, the process of periodic updation of KYC has been simplified to a large extent through vide circular dated May 10, 2021 and with vide circular dated May 5, 2021. REs have been advised that in respect of customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator or enforcement agency or court of law, etc.," The apex bank added further.
With all this awareness in place, in a digitally driven society one must be aware of the downsides it brings with the advancement, that too mostly in banking sector. It's not only the responsibility of the banking institutions but also the self-responsibility of public towards their hard-earned money. Seeking awareness of ongoing frauds and scams and questioning the person or authority who wants information regarding your bank account can bring a good deal of security to your money.