In today’s digital age, KYC scams, or Know Your Customer scams, are the fastest-growing online fraud. Every day, thousands of people fall victim to fake bank calls, fake KYC update messages, and online frauds masquerading as KYC verification.
Therefore, it’s important to understand what a KYC scam is, how it happens, and how to avoid it.
Let’s explore the details…
What is KYC Scam?
KYC scams are a type of phishing and social engineering fraud in which fraudsters pretend to be officials from a bank, RBI, wallet company, UPI app, or telecom company to steal your personal information, OTP, bank details, or device access.
Scammers falsely threaten or lure you by saying:
- “Your KYC is not updated; your bank account will be blocked!”
- “If you don’t update your KYC, your Paytm/PhonePe will be blocked!”
- “Update your KYC immediately by clicking on the link!”
As soon as you click on the link or enter the OTP, your account could be emptied.
How Does A KYC Scam Happen? (Most Common Methods)
1. Fake SMS / Messages (Most People Fall For This)
Messages like:
- “URGENT: Your KYC is not verified, account will be closed in 24 hours.”
- “Update your KYC on this link to keep your UPI active.”
As soon as you open the link your information is stolen.
2. Fake Calls (Calls Posing As Bank Representative)
The scammer, posing as a bank official, says:
- “Your KYC is pending. If you don’t, the ATM will be shut down.”
He tries to ask for your OTP, PIN, CVV, or UPI PIN.
3. Downloading Fake Apps
The scammer tells you:
- “Download TeamViewer/AnyDesk, I’ll help you with your KYC.”
And then remote access is obtained to your mobile/computer.
4. Fake Website / Phishing Page
- Fake websites are created that look exactly like bank sites.
- As soon as you log in, your bank details are stolen.
5. OTP Fraud
The scammer sends an OTP to your mobile number and asks:
- “This OTP is for KYC verification.”
As soon as you provide the OTP, your account is hacked.
Examples of KYC Scam (Real life)
- Someone receives an SMS saying, “If you don’t complete your KYC, Paytm will be closed.”
- They open the link, and within 5 minutes, money is deducted from their account.
- Many people fall victim to fraud by providing their OTP to a caller posing as a bank official.
How to Avoid KYC Scams? (Best Safety Tips)
1. Banks/UPIs never send links for KYC.
- Never click on links in messages.
- RBI, banks, and UPI apps never require KYC through links.
2. Never share your OTP, PIN, CVV, or password on any call.
- Even if the call appears genuine, don’t share any information.
3. Don’t download remote access apps.
- (AnyDesk, TeamViewer, QuickSupport). These are how scammers take control of your phone.
4. Only complete KYC on official apps/websites.
- Bank’s official app.
- Bank’s official website.
- UPI apps (Paytm/PhonePe/GPay)
- or by visiting a branch.
5. Ignore “account blocked” messages.
- These are scare tactics don’t panic.
6. Keep transaction alerts on your account.
- So you’ll know immediately.
What to do if KYC Fraud Occurs? (Emergency Steps)
- Immediately call 1930 (Cyber Fraud Helpline – India).
- Call your bank to have your account blocked.
- Disable payments in the UPI app.
- File a complaint on the Cyber Crime Portal: https://cybercrime.gov.in
The sooner you file a complaint, the greater your chances of getting your money back.
The Most Important Thing to Avoid KYC Scam
Remember: KYC is only done through the bank or official app.
- Any link, call, or message could be fake.
- Don’t give your OTP or PIN to anyone.
If you’re vigilant, you can avoid KYC scams 100% of the time.