RBI Warns Against SMS, Email, Instant Messaging, Call & OTP Scams, Check Precautions

The Reserve Bank of India (RBI) has cautioned individuals against SMS, email, instant messaging, phone calls, and one-time password (OTP) frauds. The Reserve Bank of India (RBI) has released a booklet titled "BE(A)WARE - Be Aware and Beware!" to raise awareness about fraudulent transactions in which fraudsters utilise a variety of methods to obtain a person's confidential information, causing that person to become a victim of the scam.

"There has been a surge in usage of digital modes of payment in the recent years. This gained further momentum during the Covid-19 induced lockdowns. While enhancing customer convenience, it also furthered the national objective of financial inclusion. However, as the speed and ease of doing financial transactions has improved, the number of frauds reported in retail financial transactions have also gone up. Fraudsters have been using innovative methods to defraud the common and gullible people of their hard-earned money, especially the new entrants in the use of digital platforms who are not entirely familiar with the techno financial eco-system," RBI has said in the booklet. Here, we'll look at the most prevalent fraud cases, including as SMS, email, instant messaging, phone calls, and one-time password (OTP) scams, and discover what the RBI has to say about them.

SMS / Email / Instant Messaging / Call scams

Here are the modes of operation taken by fraudsters according to the RBI to conduct SMS / Email / Instant Messaging / Call scams.

• Fraudsters circulate fake messages in instant messaging apps / SMS / social media platforms on attractive loans and use the logo of any known NBFC as profile picture in the mobile number shared by them to induce credibility.
• The fraudsters may even share their Aadhaar card / Pan Card and fake NBFC ID card.
• After sending such bulk messages / SMS / emails, the fraudsters call random people and share fake sanction letters, copies of fake cheques, etc., and demand various charges. Once the borrowers pay these charges, the fraudsters abscond with the money.

Precautions to be taken according to RBI

• Never believe loan offers made by people on their own through telephones / emails, etc.
• Never make any payment against such offers or share any personal / financial credentials against such offers without cross-checking that it is genuine through other sources
• Never click on links sent through SMS / emails or reply to promotional SMS / emails.
• Never open / respond to emails from unknown sources containing suspicious attachment or phishing links.

OTP based Frauds

According to the RBI, fraudsters use the following ways for OTP scams.

• Fraudsters impersonating as NBFCs, send SMS / messages offering loans or enhancement of credit limit on NBFC/bank customers' loan accounts, and ask the customers to contact them on a mobile number.
• When the customers call such numbers, fraudsters ask them to fill forms to collect their financial credentials. Fraudsters then induce / convince the customers to share the OTP or PIN details and carry out unauthorised transfers from the customers' accounts.

Precautions to be taken according to RBI

• Never share OTP / PIN / personal details, etc., in any form with anyone, including your own friends and family members.
• Regularly check SMS / emails to ensure that no OTP is generated without your prior knowledge.
• Always access the official website of bank / NBFC / e-wallet provider or contact the branch to avail their services and / or seek product and services related information and clarifications.

The "BE(A)WARE - Be Aware and Beware!" booklet, which informs on numerous fraud events, can be downloaded here. The brochure has been developed by the Office of Ombudsman, Mumbai-II, as part of the Reserve Bank of India's Consumer Education and Protection Department's public awareness effort. RBI says "The booklet is intended to create awareness among the members of public about the modus operandi adopted by fraudsters to defraud and mislead them, while also informing them about the precautions to be taken while carrying out financial transactions. It emphasizes the need for keeping one's personal information, particularly the financial information, confidential at all times, be-ware of unknown calls / emails / messages, practising due diligence while performing financial transactions and changing the secure credentials / passwords from time to time."