KYC frauds: RBI cautions public to not share account particulars, passwords with unidentified businesses

the RBI mentioned it has been receiving complaints about prospects falling prey to frauds.

The Reserve Financial institution on Monday cautioned individuals towards frauds within the identify of KYC updation and suggested them to not share key data like account particulars or passwords with unidentified individuals or businesses. 

In a launch, the RBI mentioned it has been receiving complaints/stories about prospects falling prey to frauds being perpetrated within the identify of KYC updation. 

“The standard modus operandi in such instances embody receipt of unsolicited communication, akin to, calls, SMSs, emails, and so on., by buyer urging him/her to share sure private particulars, account / login particulars/ card data, PIN, OTP, and so on. or set up some unauthorised/ unverified utility for KYC updation utilizing a hyperlink supplied within the communication,” it mentioned. 

Such communications are additionally reported to hold threats of account freeze, block or closure. 

As soon as the shopper shares data over name/message/unauthorised utility, fraudsters get entry to his/her account, the central financial institution famous. 

“Members of public are hereby cautioned to not share account login particulars, private data, copies of KYC paperwork, card data, PIN, password, OTP, and so on. with unidentified individuals or businesses,” RBI mentioned. 

Additionally, such particulars shouldn’t be shared by way of unverified or unauthorised web sites or purposes. In case they obtain any such requests, prospects ought to get in contact with their financial institution. 

The RBI additional mentioned that whereas the Regulated Entities (REs) are required to undertake periodic updation of KYC, this course of has been simplified to a big extent. 

REs have additionally been suggested that in respect of buyer accounts the place periodic updation of KYC is due, no restrictions on operations of such accounts shall be imposed until December 31, 2021 because of this alone, until warranted beneath directions of any regulator, enforcement company or courtroom of legislation.

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