NPS & APY: PFRDA informs pension subscribers on ongoing fraud, shares steps to prevent cases

Pension fraud: The Pension Fund Regulatory and Development Authority (PFRDA) has issued a public notice to alert subscribers of the National Pension System (NPS) and Atal Pension Yojana (APY) about the increasing prevalence of fraudulent schemes. 

The PFRDA has cautioned that scammers may attempt to deceive individuals by falsely using its name and NPS brand through various means such as SMS, calls, emails, websites, mobile apps, and social media platforms like Facebook, WhatsApp, and Telegram. These deceptive tactics could result in cyberattacks and financial losses. 

To ensure authenticity, the PFRDA always communicates via SMS using the sender ID – PFRDAI. If you receive any communication referencing PFRDA, NPS, APY, retirement wealth, or pension, it is advisable to verify the sender before taking any further action.

“The only official website of PFRDA is www.pfrda.org.in and the public are advised to be wary of phishing attempts by fake websites that replicate the official website closely with unnoticeable changes in the domain name,” the notice said.

It further said: “PFRDA cautions the general public/ subscribers of NPS & APY who have been receiving spurious calls from unscrupulous individuals demanding large sums of money with the promise to release their corpus of funds in NPS/APY. Fraudulent websites & Mobile applications spuriously referring to PFRDA/ NPS/ APY/ Retirement wealth/ Pension are falsely promising large sums of money as pension or unrealistic returns on periodic contributions being made to the accounts mentioned on the fraudulent websites & Mobile applications."

PFRDA notice reiterated that it is the regulatory authority for the National Pension System (NPS), Atal Pension Yojana (APY), NPS Lite, and NPS Swablamban. The organisation emphasized that it does not directly offer any schemes to individuals or through representatives.

These pension schemes require beneficiaries to contribute until the age of 60, after which they can withdraw a certain corpus amount and receive annuities monthly. Unfortunately, there are fraudsters attempting to deceive individuals by promising higher returns than the market and full withdrawal, which is not possible.

How to prevent fraud and safeguard investors, pensioners

PFRDA has released a set of recommended practices to safeguard yourself against financial fraud:

Avoid responding to suspicious SMS, calls, emails, or letters that make unrealistic or dishonest promises.
Refrain from sharing sensitive personal and financial information, PRAN numbers, or passwords with any individual or organization.
Be cautious and conduct proper research when approached by individuals or entities offering excessively high returns.
Do not make any payments or contributions to unauthorized individuals or businesses.
Utilize the official websites and mobile applications of PFRDA, NPS Trust, or registered intermediaries for NPS/APY-related activities.
In case of encountering fraudulent activities, it is advised to report such incidents by filing a detailed complaint with the local police station.

In case of fraud:

Based on the notice, your first step should be to disconnect your device from the internet, update your mobile and internet passwords, and secure your bank accounts and credit cards. Additionally, file a complaint through the National Cyber Crime Reporting official portal at https://cybercrime.gov.in , report the incident to your local police station, or contact the National helpline number 155260 to register a cyber complaint.

Things to note 

PFRDA’s official website is www.pfrda.org.in. Any variation in it should cause an alert in users’ minds for a fake website.

PFRDA sends SMS only from this Sender ID 'PFRDAI'. Other IDs are not official and should be avoided.

Official NPS Information Desk:

Call Centre: 1800110708 

SMS: NPS to 56677

Official APY Information Desk:

Call Centre: 1800110069