RBI issues caution on fraudulent activities, scammers' modus operandi, prevention steps

Online frauds: The Reserve Bank of India (RBI) has recently released a cautionary notice regarding fraudulent schemes misusing its reputation. Reports indicate a growing trend of scams in which perpetrators pose as RBI representatives to exploit unsuspecting individuals.

These fraudulent activities encompass a wide array of deceptive practices, including fictitious lottery prizes and false claims of impending account suspension. It is crucial for the public to remain vigilant and exercise caution to protect themselves from falling victim to such scams.

The central bank said these fraudsters use enticing tactics like fake letterheads and email addresses of RBI, impersonating as employees of RBI or intimidating tactics via calls, SMS or emails impersonating as RBI officials threatening to freeze/block/deactivate bank accounts of recipients and convince/coerce them to share certain personal details, account/login details/ card information, PIN, OTP, etc. or install some unauthorised/ unverified application using a link provided in the communication.

The central bank has provided detailed information about various modus operandi employed by fraudsters. It has highlighted that these fraudulent individuals utilise fake letterheads and email addresses resembling those of the RBI to impersonate employees of the institution. 

They entice individuals with false promises of winnings from lotteries, fund transfers, foreign remittances, and government schemes. Victims are then coerced into parting with their money in the form of currency processing fees, transfer charges, or procedure fees.

In addition to these schemes, there has been a notable tactic observed where small and medium-sized businesses are targeted by fraudsters who pose as government or RBI officials. These businesses are pressured into making a "security deposit" under the pretext of a lucrative government contract or scheme, promising substantial returns on their investment.

Furthermore, fraudsters also resort to intimidating strategies by contacting individuals through IVR calls, SMS, and emails to carry out their unlawful activities. It is crucial for individuals and businesses to remain vigilant and cautious of such deceptive practices to safeguard themselves from financial losses.

The central bank has also reported instances of individuals impersonating RBI officials, threatening recipients with freezing or deactivating bank accounts, and persuading them to share personal information or install unauthorized applications through provided links. RBI has identified websites and apps of unauthorized digital lending entities and alleged financial service providers.

RBI clarifies that it does not maintain accounts in the name of individuals, companies, or trusts in India for fund distribution purposes. The central bank does not open accounts for individuals or request money deposits into such accounts.

Furthermore, RBI does not send emails regarding lottery prize awards, nor does it communicate lottery winnings or foreign funds through SMS, letters, or emails.

"Beware of calls, emails, and any other communication by cybercriminals posing as officials from government agencies/RBI, asking for transfer of money under the pretext of any enticing offer or alarming issue,” the RBI said.

“Do not share account login details, personal information, copies of KYC documents, card information, PIN, password, and OTP with unidentified persons or agencies,” it said.

It added that users should not share such details through unverified/unauthorised websites or applications. In case one receives any such requests, he or she is requested to get in touch with their bank/branch.