KYC fraud: RBI has new list of dos and don’ts while getting your banking KYC done

Reserve Bank of India has issued some new guidelines to spread awareness on KYC frauds. KYC frauds claim one of the largest number of victims across the country, with people losing lakhs. All mobile operators including Airtel, Vodafone-Idea and Reliance Jio too have warned users against KYC fraud. RBI recently issued new dos and don’ts on banking KYC fraud.

In KYC scam, scammers use unsolicited communications (calls/SMS/emails) to manipulate individuals into revealing important personal information, including account/login details or make them install unauthorised apps.

Tactics include creating false urgency, threatening account freezing, blocking, or closure to coerce compliance. When personal details are shared, fraudsters gain unauthorised access to accounts, leading to fraudulent activities.

RBI has also issued a list of dos and don’ts for users to protect themselves from falling prey to malicious practices.

RBI has advised users to directly reach out to their bank or financial institution for confirmation and assistance in case they want to update the KYC or get the KYC done. This becomes even more important when someone calls you for the KYC completion.

Every bank and financial institution lists their customer support details on their official website as well as app. It is advisable to head to the official source to get the right contact details for the bank to ensure authenticity.

Another important thing RBI has asked users to do is report it as soon as possible to a bank or financial institution to mitigate the potential risks, in case they have been duped.

Visit your bank branch to inquire about the available modes and options for updating your KYC details.

Never share your account login credentials, card information, PINs, passwords, or OTPs with anyone, regardless of the situation.

Do not share your KYC documents or copies with unknown or unidentified individuals or organizations to prevent misuse.

Refrain from sharing any sensitive data or information through unverified or unauthorised websites or apps.

Do not click on suspicious or unverified links received via mobile or email, as they may lead to phishing attempts.