Installing unauthorized or unverified apps on the pretext of updating KYC makes the account empty
With the rise of digital payments in the country, the cases of fraud are also increasing. RBI has issued a warning to consumers to avoid fraud. The Reserve Bank has tweeted that it is receiving complaints that the customers of the bank are being cheated in the name of updating KYC. RBI says that you should use your card very carefully. Do not give ATM/Debit card information to anyone.
RBI says that customers are being asked to share personal information by phone, SMS and email. This includes login details, card information, PIN and OTP. Apart from this, it can also ask customers to install unauthorized or unverified apps for KYC update by sending a link. By sending SMS and emails to the customers, they are being told that their account may be frozen, blocked or closed if the KYC is not updated.
If the customer tells them OTP, PIN or clicks on the link given by them, then the fraudsters get all the access to their account and money can be withdrawn from their account. RBI says regulated entities will have to update KYC from time to time but the process needs to be simplified. The central bank said that if a customer’s account has been updated from time to time, then no action will be taken on his account only till December 31, 2021, unless on the direction of any regulatory/enforcement agency/court. not necessary.