RBI’s Do’s and Don’ts: guide to safeguard against KYC fraud threats

In response to a surge in fraudulent activities disguised as Know Your Customer (KYC) updation, the Reserve Bank of India (RBI) issued a renewed caution to the public. Reports of customers being manipulated into revealing personal information through unsolicited communications, such as phone calls, SMS, or emails, have prompted the central bank to urge individuals to exercise caution.

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The typical modus operandi involves creating a false sense of urgency and threatening account freezing or closure if customers fail to comply. The RBI emphasizes several crucial do’s and don’ts to mitigate these risks.

Individuals are advised to directly contact their bank for KYC confirmation and to obtain the customer care phone number of their respective financial institution only through its official website. They are also advised to promptly inform their bank of any cyber fraud incidents and are encouraged to verify available modes for updating KYC details with their bank branch.

On the flip side, individuals should never share account login credentials, card information, OTP, pins or KYC documents with anyone. Caution is advised against sharing sensitive information through unverified websites or applications. Clicking on suspicious links received via mobile or email is strongly discouraged.

• Also read: Intentional or unintentional, employee actions lead to majority of cyber incidents

The RBI stresses that adopting these guidelines is imperative to prevent financial loss and safeguard against malicious practices. In case of any financial cyber fraud, individuals are urged to file complaints on the National Cyber Crime Reporting Portal or through the cybercrime helpline. As threats persist, the RBI emphasizes the importance of public vigilance and adherence to these guidelines to thwart fraudulent activities in the guise of KYC updation.

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