KYC Banking Fraud Alert: RBI Says Do These 3 Things To Stay Safe; Here's How To Spot A Fake Message

RBI KYC fraud: Millions of users have seen an RBI-backed message/Alert on their WhatsApp this week, which warns them about KYC (Know Your Customer) fraud that can dupe people out of their money from their bank accounts. KYC is a standard process undertaken by any bank that wants to make sure who their customers are and if the account is being used by the same person they issued it to for all financial tasks.

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Although this KYC process has its own validity and safeguards, it has increasingly become a weapon against the community. Suspicious actors impersonating govt authorities or the central bank usually use this as a weapon to drain people of their wealth.

The scheme is simple, scare them into thinking that their bank account will be blocked or frozen by sending a message or email and then asking people to update their information and banking details.

What RBI Has Warned About

The Reserve Bank Of India (RBI) has alerted people about such messages and has asked them to not go into panic, as the usual case is, that these are sent by fraudsters who claim that their bank accounts will be frozen or blocked if KYC is not completely updated.

There are three simple rules that the central bank wants people to focus on, which are "Stop, Think and Act."

Firstly, Stop: means that one should not panic and click the link immediately or follow any instructions unscrupulously floated their way, through call or text.

Secondly, Think: RBI points to a simple fact that NBFCs (non-banking financial companies) do not send such messages that will require you to update KYC information by clicking a suspicious link. If a message comes your way claiming account blocking or closure, it is a warning sign, and you should not proceed further.

Thirdly, Act: People are warned to not share sensitive information like OTPs, PINs or passwords, or click any suspicious link like that. The best option here is to contact the bank or NBFC immediately through official channels and verify if there is actually any need to have a KYC update or not.

So the lesson here is not to panic and act out of urgency, as this is the biggest weapon a fraudster can use against you to exploit you financially.

APK Files Being Used To Scam People

APK files are usually the ones that install an App on your Android device. Scammers use this way these days to get inside your device and exploit sensitive information. By creating a sense of fake urgency, the fraudster can ask you to install an app and then use the details afterwards to hijack your smartphone or device; they can then use spyware to gain accessibility permissions, which can lead to the duplication of your details.

This is very harmful, as it will give them access to OTPs that you get on your device, and before you know it, your money will be drained from your account.

Things To Keep In Mind

- Firstly remember what RBI has said, "Stop, Think and Act."

- Never click on any suspicious or unscrupulous link.

- Never Install Any APK File or suspicious app.

- Contact your bank immediately through official numbers or channels.

- Do not respond to calls or messages that say your bank account will be frozen or blocked; it's probably a scam.

- If money is stolen contact Cyber Crime helpline 1930, the earlier you do the better.

How To Know If It's Fake Or Real?

Check Green Tick on WhatsApp: This is the most basic thing to do. Real alerts will always have a green tick; that's how it's verified, and it can be spotted right next to the sender's profile name. Fake accounts have a common mobile number with RBI's logo in the image to fake it.

Check Sender ID in SMS: Official banks have a unique ID which is Alphabetic in nature, like AD-HDFCBK or VK-UNIONB. Scammers will again have a generic mobile number and not an official ID to send SMS.

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Check Link: Official links have a secure domain like .co.in. But fake links might transfer you to something like bit.ly or tinyurl.com. They might even carry slightly misspelled or closely resembling URLs, so pay complete attention.

Fake Urgency Test: Fraudsters play on a fake sense of urgency and always put text like 'If not done in 2 hours, your card or bank account will be blocked, suspended or frozen'. This prompts you to take action that might lead to financial loss.

Demanding Confidential Information: Banks already hold all your personal info, so if a message or call asks you to put in a PIN, CVV or OTP, treat it as an immediate red flag.