In an increasingly digital India, Know Your Customer (KYC) verification has become an essential part of banking and financial services. It helps banks to verify the identity of customers, prevent financial crimes and maintain the security of the banking system. The main purpose of KYC is to prevent identity theft, terrorist financing, money laundering, and financial fraud. The process also helps Financial Institutions and businesses to understand the customer better. As per the RBI norms, KYC has become mandatory requirement. The details like legal name, identity proof, correct permanent address as per identity proof of customers are collected to complete the KYC process.
However, cybercriminals are exploiting the importance of KYC to deceive innocent people and steal their hard-earned money. Taking undue advantage of this process, the fraudsters send fake SMS /text message or make fraudulent calls, by pretending to be a bank representative to gather personal details of customers. The fraudsters may provide the customers with the phishing link, or 10 digit mobile number or convince them to give access to them digital device, through which they intend to get hold of customer’s personal details to get unauthorized access to their banking accounts to steal money. Victims are often told that their bank accounts, debit cards or mobile banking services will be blocked unless they immediately update their KYC details. Under this pressure, unsuspecting customers may disclose confidential information, click on suspicious links or follow instructions that give criminals access to their bank accounts.
Many innocent people have lost their hard earned money to this fraud in recent times and still continuing. In a recent incident, a 73-year-old woman from Mumbai fell victim to a KYC update scam. She received a text message claiming that her bank KYC was expiring and needed immediate updating. The message included a link to a fraudulent website designed to steal personal information. The woman’s son, trying to help, entered the requested details on the fake website. Shortly after, ₹2 lakh was siphoned from her bank account in two separate transactions.
A common method involves Fraudsters make a fake call to the victim pretending to be representative from a bank or e-wallet company, requesting them to update the KYC immediately and warning them of account block/suspension. The caller says that the validation/KYC can be done online to keep the account active, and asks the customer to download an APP on the digital device being used. Once the app is downloaded, the fraudsters will ask you to share code and grant certain permissions, which will enable them to gain access to your digital device.
The caller then asks the victim to transfer a small amount from your bank account, which will enable them to see or access OTP sent on the digital device. When the victim transfers the money, the caller gets to see your password and other important details, which are used to carry out a fraudulent transaction and wipe out money from your bank account.
Criminals sometimes use forged documents or stolen identity details to misuse another person’s identity. Such misuse can have consequences beyond immediate financial loss, including unauthorised financial activity in the victim’s name. Anyone using banking or digital financial services can become a target.
However, people who are unfamiliar with digital banking, elderly customers and those who are unfamiliar with common cybercrime tactics may be particularly vulnerable to deceptive messages and impersonation calls. In Jammu and Kashmir, as elsewhere in the country, public awareness is important as more people use mobile banking, digital payments and online financial services. Families, banks and community organisations can help by educating customers about common warning signs and safe banking practices.
Customers should remember that KYC verification does not require them to disclose their OTP, PIN or password to a caller. They should never share such confidential information with anyone claiming to represent a bank.
Any message threatening immediate account blockage should be treated cautiously. Customers should verify KYC requirements through their bank’s official website, authorised mobile application, verified customer-care channel or branch. They should avoid clicking unknown links or calling phone numbers supplied in suspicious messages.
Customers should never install applications at the request of an unknown caller or grant screen-sharing access to strangers. They should also avoid sharing photographs of identity documents through unverified channels and should keep their mobile phones, banking applications and operating systems updated.
Banks and financial institutions also have an important role to play. Regular customer awareness programmes, timely fraud alerts, staff training and accessible complaint channels can help reduce the risk of KYC-related fraud. Special attention should be given to customers who need additional assistance with digital banking.
What should victims do?
If a customer suspects a KYC scam or notices an unauthorised transaction, immediate action is crucial. The person should contact their bank through an official channel to report the incident and seek assistance in securing the account.
In India, suspected cyber financial fraud can be reported by calling 1930, the national cybercrime helpline, as soon as possible. A complaint can also be submitted through the official National Cyber Crime Reporting Portal at cybercrime.gov.in. Prompt reporting may improve the chances of preventing further loss, although recovery is not guaranteed.
Customers should preserve relevant SMS messages, transaction details, call records and other available evidence for investigation.
Awareness is the strongest defence KYC is a legitimate and necessary banking process, but fear of account suspension should never lead customers to make hurried decisions. Fraudsters depend on urgency, impersonation and lack of awareness to manipulate their victims.
The message is simple: verify before you trust, never disclose confidential banking credentials, and use only authorised channels for KYC updates. A cautious customer is a safer customer, and an informed community is better equipped to resist cybercrime.
As India advances towards a digitally empowered economy, responsible digital behaviour and cooperation between banks, law-enforcement agencies and the public are essential to making banking safer for everyone.
Fraudsters make a fake call to the victim pretending to be representative from a bank or e-wallet company, requesting them to update the KYC immediately and warning them of account block/suspension.
The caller says that the validation/KYC can be done online to keep the account active, and asks the customer to download an APP on the digital device being used. Once the app is downloaded, the fraudsters will ask you to share code and grant certain permissions, which will enable them to gain access to your digital device. The caller then asks the victim to transfer a small amount from your bank account, which will enable them to see or access OTP sent on the digital device. When the victim transfers the money, the caller gets to see your password and other important details, which are used to carry out a fraudulent transaction and wipe out money from your bank account.
In case of fake Messages sent from a mobile number with a phishing link and/or 10 digit mobile number, for update of KYC.Upon clicking the link provided in the message, the victim is redirected to the spoofed website and prompted to enter the bank user name, password, OTP etc.
Upon calling the number provided in the message, the victim is provoked to share personal details like account user name, password, account number, OTP etc. The fraudster makes use of these details to gain unauthorized access to the victim’s bank account to commit fraud.
The following are a few warning signs for the user, that may indicate that the message or call is from fraudsters:
Request for confidential information like account number, PIN, Password etc.,
Request for download of applications on personal device
Sense of urgency is created, to take immediate action.
Poor grammar, punctuation and unwanted capitalization of words in the message received.
Message sent from a mobile number instead of the authorized banking customer care / service
Message received, appears to be from unknown mobile number instead of the name of registered bank.
Security tips for preventing KYC related frauds and for safeguarding against such cyber frauds
Never click on unknown links or links received from unverified sources.
Always remember that a banks/ wallet companies or other authorized institutions, never does KYC on calls or send any links to its customers, for updating KYC.
A valid customer care number can never be a 10 digit mobile number as generally given in the fake message.
Never share your mobile number, account number, password, OTP, PIN or any other confidential details with anyone. Any authorized bank or customer service never asks its customers to share any confidential information.
Avoid contacting the customer service/contact numbers provided on google search. Only contact the authorized numbers provided original banking websites.
Your account will never be blocked by bank/ any e-Wallet unless if you have done fraudulent activities
Do not give your access to your device for anyone by installing remote access type of applications (AnyDesk , Quicksupport ,Team Vier etc.)
Only use original apps downloaded from authorized stores /websites, do not download third party apps.
Do not make hasty decisions under pressure. Take time to verify the information
Block and report the numbers from which you receive suspicious calls or messages.
Stay informed about the latest scams and educate your family and friends to ensure they are aware and prepared.
In case of any such issues immediately report to the specific bank authorities immediately.
File an online complaint regarding any such frauds on the government portal www.cybercrime.gov.in