Fraud can happen in the name of updating-KYC

Ground Report | New Delhi: Fraud can happen in the name of updating-KYC; The Reserve Bank of India on Monday advised the general public not to share account login details, personal information, KYC documents, card information, PIN, password, and OTP with unknown persons or agencies.

"Such information should not be shared on any unconfirmed/unauthorized websites or apps. If customers receive any such request, they should inform their bank/branch," RBI said in a statement.

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The Reserve Bank of India had received complaints that bank customers were being made victims of fraud in the name of updating KVA. In such cases, most of the customers are asked for confidential account information through phone calls, SMS, and emails. In such communication, customers are warned against freezing/blocking/closing their account.

Fraud can happen in the name of updating-KYC

The usual modalities in such cases include unsolicited communication by the customer urging him to share certain personal details, account/login details/card information, PIN, and OTP or to install some unauthorized/unverified application, such as calls, SMS, and the receipt of the email. KYC updation using the link given in the communication.

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Such communication is also reported to threaten account freeze/block/closure. Once the customer calls/messages/shares the information on unauthorized applications, the fraudsters are able to access and defraud the customer's account.

"It is also clarified that while regulated entities require periodic updation of KYC, the procedure for periodic updation of KYC has been simplified to a large extent," RBI said.

"Regulated entities have been advised that in respect of customer accounts where periodic updation of KYC is due and pending as on date, no restriction shall be imposed on the operation of such account till 31st December, for the reason only, unless any regulatory Enforcement agency/court of law not required under the directions.

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