RBI asks people to follow safe digital banking practices amid rising fraud

Worried about the growing incidence of cyber fraud, the Reserve Bank of India (RBI) on Friday issued a public notice asking people to follow safe digital banking practices to avoid possible financial loss.

Observing that unscrupulous elements are defrauding people using innovative modus operandi including social media techniques and mobile phone calls, the RBI has urged members of the public to take all necessary precautions when carrying out financial transactions digital.

“…the Reserve Bank warns members of the public against fraudulent messages, fake calls, unknown links, fake notifications, unauthorized QR codes, etc. promising assistance in obtaining concessions/accelerating the response from banks and financial service providers in any way,” the central bank said.

Fraudsters attempt to obtain confidential information such as user ID, login/transaction password, OTP (one-time password) as well as debit/credit card details and other personal information.

The RBI has highlighted some of the typical modus operandi used by fraudsters like Vishing, Phishing and Remote Access.

“RBI urges members of the public to practice safe digital banking by taking all necessary precautions when carrying out any digital (online/mobile) banking/payment transaction. This will help to prevent them from financial loss and/or others,” the notice reads. .

Vishing refers to phone calls claiming to be from bank/non-bank e-wallet providers/telecom service providers to trick customers into sharing confidential information under the guise of KYC update, account/card unlock SIM and credit debited amount.

Phishing refers to spoofed emails and/or text messages designed to trick customers into believing that the communication is from their bank/e-wallet provider and contain links to extract confidential information.

By using remote access, fraudsters trick customers into downloading an app on their mobile phone/computer that can access all customer data on that customer device.

Fraudsters also misuse UPI’s “request collection” feature by sending fake payment requests with messages such as “Enter your UPI PIN” to receive money.

It should also be noted that fake numbers of banks/e-wallet providers on web pages/social networks and displayed by search engines.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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