Here's how you can avoid KYC-related bank frauds
Banks have advised depositors to not believe in hearsay and make sure to verify the source of such messages, emails, calls, etc. before sharing any details
Recently, State Bank of India (SBI) alerted customers to be mindful of fraudsters calling to request for Know Your Customer (KYC) verification. These scamsters, reportedly, pretend to be KYC officials or representatives of the Reserve Bank of India or SBI itself.
“We advise our customers to be alert of fraudsters and not to share any sensitive details online or download any app from an unknown source,” SBI tweeted. It also recommended against downloading any application from unknown sources.
Many banks had previously notified customers to update KYC details otherwise their accounts could be frozen. Depositors were summoned to the branch offices to submit documents required for verification. Due to the rise in Covid cases, RBI intervened and suggested financial institutions to avoid taking any punitive action and give customers time till December. It also asked the banks to carry on the KYC verification process digitally.
Fraudsters took advantage of the situation and began calling customers to fetch sensitive data in the name of KYC verification. Banks have advised depositors to not believe in hearsay and make sure to verify the source of such messages, emails, calls, etc. before sharing any details.
Doorstep banking
Make sure to share any KYC-related document only on the bank’s official website or app. If you want to avoid digital KYC, opt for doorstep banking facility that has been initiated by public sector banks under PSB Alliance. Customers of public sector banks can easily schedule for KYC document pick-up facility and they will be notified at every step of the way.
SBI also shared some tips for customers to avoid falling prey to any imposter:
-Do not share your credentials like date of birth, debit card number, internet banking ID/password, debit card pin, OTP, and other personal details.
-Beware of the fraudsters pretending to be calling from SBI, RBI, government offices, police, KYC authority.
-Do not download any mobile app based on telephone calls/emails from any unknown source.
-Avoid clicking on attachments received in mails from unknown sources.
-Do not respond to unsolicited offers, however attractive, received through emails, SMSs and other social media.