HomeSecurity ArchitectureRBI Releases Advisory on KYC Updation Fraudulent Activities

RBI Releases Advisory on KYC Updation Fraudulent Activities

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The recent notification released by the Reserve Bank of India (RBI) has highlighted the ongoing issue of Know Your Customer (KYC) related fraud tactics affecting a significant number of people. Despite continuous warnings to the public about such fraudulent activities, the central bank pointed out that customers are still falling prey to these malicious practices.

In response to this concerning trend, the RBI emphasized the importance of exercising caution and due care to prevent loss and safeguard against fraudulent activities. The central bank specifically warned customers about the various tactics employed by fraudsters, including unsolicited communications such as phone calls, SMS, or emails. These fraudulent messages often create a false sense of urgency and threaten account freezing, blocking, or closure if customers fail to comply.

The RBI further stated that fraudsters use these communications to trick customers into revealing personal information, account or login details, or installing unauthorized or unverified apps through links provided in the messages. Once customers share their essential personal or login details, fraudsters gain unauthorized access to their accounts and engage in fraudulent activities.

To address this growing concern, the RBI has recommended a set of guidelines for customers to follow when dealing with suspicious activity related to KYC updation. Customers are advised to directly contact their bank or financial institution for confirmation or assistance if they receive any request for KYC updation. It is important to obtain the contact number or customer care phone number of the bank or financial institution only through its official website or sources.

In the event of any cyber fraud incident, customers are urged to inform their bank or financial institution immediately. Additionally, to update their KYC details, customers should enquire with their bank branch and ascertain the available modes or options for the same. The RBI also advised the public to lodge a complaint on the National Cyber Crime Reporting Portal or through the cybercrime helpline in case of financial cyber fraud.

Experts in the field of cybersecurity and financial fraud have also weighed in on the issue, emphasizing the need for customers to be vigilant and cautious. Ashok Hariharan, CEO of IDFy, highlighted the importance of using only official banking channels for KYC updation and not falling for requests to use unverified platforms.

Furthermore, the RBI has stressed the importance of not sharing login details, card information, PINs, passwords, or OTPs. Customers are also advised to avoid sharing KYC documents with unknown individuals and sensitive data through unverified websites and to never click on suspicious links in emails or messages.

Ankit Ratan, CEO and co-founder of Signzy, emphasized the role of regulators, end-users, and businesses in establishing digital trust. He reiterated the RBI’s commitment to spreading awareness and issuing guidelines to provide more clarity on the regulatory framework, fostering ethical practices, and enabling responsible innovation.

Overall, the RBI’s notification serves as a stark reminder to the public to remain vigilant in the face of ongoing KYC frauds and to exercise due diligence to prevent falling prey to fraudulent activities. With the collaboration of regulatory bodies, businesses, and end-users, efforts can be made to combat these fraudulent practices and ensure a more secure digital environment for all.

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