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Beware: Do not lose your money to this KYC scam

IamCheated.com Research Team | October 08, 2019  6:10:pm

Beware: Do not lose your money to this KYC scam

We all hear the word KYC while opening a bank account, buying life insurance or while investing in shares and mutual funds. KYC stands for Know Your Customer and it has become really important these days. Before rendering any service from a financial Institution, you will have to undergo the KYC process. KYC is a mandatory requirement for the identification and verification of customer details, by using reliable information or documents.

Why KYC is important?

The main intention of KYC is to prevent identity theft, terrorist financing, money laundering, and financial fraud. The KYC process helps Financial Institutions understand the customer better. The following details of customers are collected to complete the KYC process.

1. Legal name

2. Correct permanent address as per identity proof

3. Identity proof

4. The legal status of the entity or person.

See Also: Paytm warns users against KYC fraud

Frauds in the name of Know Your Customer (KYC)

As KYC has become mandatory at many places, fraudsters are using this to cheat people.  They call up people in the name of completing their KYC and hack their bank accounts, stealing hard earned money.  Many innocent people have lost their hard-earned money to this fraud.

How does this fraud take place?

1. Fraudsters call claiming to be from a bank or e-wallet company.  They say that your bank or e-wallet KYC is not valid and has to be updated as soon as possible.

2. The caller says that the validation can be done online to keep the account active.

3. To start the process, the caller will ask you to download the Anydesk App on your phone.

4. Once the app is downloaded, the fraudsters will ask you to share code and grant certain permissions.

5. Once you provide permission, the fraudsters will gain access to your phone. The caller then asks you to transfer a small amount of money to your e-wallet from your bank account.

6. When you transfer the money the caller will get to see your password and other important details. These details are used to carry out a fraudulent transaction and wipe out money from your bank account.

7. Through this remote access app, fraudsters will be able to see the OTP sent to your mobile phone.

8. Within a few minutes the entire bank account will be emptied by the fraudsters.

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