What Is KYC Expiry Alert Scam?
Updated on 25th Mar 20253 Min read
Banks conduct KYC (Know Your Customer) verification to confirm a customer's identity. This process helps prevent fraud and ensures compliance with regulations. However, scammers have even found a way to misuse this process and scam people by sending fake KYC alerts.
The fraudulent messages seem so convincing that you cannot help but opt for immediate KYC updates to prevent your account from facing suspension. Not everybody is aware of such scams, and you might be one of them. This is why our fraud awareness campaign #ScamKaSiren is here to help you stay informed and protected. Read on for all important information on KYC expiry alert scam.
What is KYC Fraud?
KYC fraud occurs when scammers exploit the know-your-customer process to steal personal and financial data. They often play fake bank representatives, send deceptive messages and create fake websites to bluff people into sharing sensitive information.
The rising number of financial services operating online has directly resulted in higher KYC fraud occurrences as it is easier for people to believe them.
How Does KYC Fraud Happen?
Here are the most prevalent ways through which KYC frauds happen:
1. Fake Calls or SMS Phishing
Scammers pretend to be bank officials and contact people to get their Aadhaar, PAN or OTP numbers by falsely claiming KYC maintenance. They often create a sense of urgency, forcing victims to reveal their personal information.
2. Impersonation
Fraudsters use stolen or fake identity documents to create accounts in someone else's name, often leading to the misuse of financial services.
3. Email Spoofing
Scammers send emails pretending to be from banks, asking users to upload their KYC documents on a fake website.
4. Unsecured Websites
Fake banking websites are designed to collect sensitive information when users unknowingly enter their details for KYC verification.
Tips to Prevent KYC Fraud
Knowledge about KYC fraud, along with cautionary practices, helps prevent this type of security violation. Here are some key precautions to take:
1. Think Before Clicking on Links
- Ignore clicking on any links in messages which claim your KYC has an expiration date.
- Visit your bank's official website directly to check your KYC status.
2. Never Share Personal Information
- Banks and financial institutions do not request sensitive details like OTPs, passwords or account numbers over calls or text messages.
- When anyone attempts to request such personal data, report it immediately.
3. Verify the Source
- Always confirm the identity of both the individual and organization who is asking you for your KYC details.
- Contact your bank using their official number in case you receive suspicious messages.
4. Secure Your Banking Activities
- Select strong passwords and enable 2FA for your bank accounts.
- It is best to stay away from doing banking on public Wi-Fi networks.
Do's and Don'ts to Avoid KYC Fraud
| Do’s | Don’ts |
|---|---|
| Always verify the identity of the sender before sharing any KYC details. | Do not share OTPs, PINs, or passwords with anyone. |
| Use official bank websites and apps for KYC updates. | Do not click on links from unsolicited messages or emails. |
| Report suspicious activity to your bank or cybercrime authorities. | Do not upload sensitive documents on unfamiliar websites. |
Summing Up
KYC scams have unfortunately become very common and a lot of innocent people are getting trapped by scammers. Always be cautious with unexpected KYC update requests, and never share personal details without verification.
If you suspect fraudulent activity, report it immediately. Staying informed helps you combat the risk of being robbed at the hands of a scammer. Remember, caution is the parent of safety!
If you have been scammed online, immediately contact your bank, report the scam to the authorities like the National Cyber Crime Helpline at 1930 or the National Cyber Crime Reporting Portal (https://cybercrime.gov.in/)and document everything related to the scam.
FAQs
1. How can I check if a KYC request is genuine?
Always verify information through your bank's official customer service number or by checking their official website. You must never click on links that arrive in your inbox.
2. What should I do if I accidentally share my KYC details with a scammer?
You must immediately reach out to your bank to protect your account. Additionally, you must file a report of the incident to cybercrime on cybercrime.gov.in.
3. Can my bank block my account if I don't update KYC?
Yes, banks may deactivate your account if you don't update your KYC. However, banks will never use random links or calls to inform you about KYC, but they will officially follow a process on their official app or when you visit the branch.
