Criminal Law, Cyber Crimes, Cyber Law, Cyber Lawyer, Cyber Offenses / Contravention, Data Privacy, E-Commerce Fraud, Information Technology Act, Internet Fraud, Legal

With the advancement in technology in making digital payments, mobile phone payment apps/E wallets are being used commonly for quick and fast transactions.

While using the service, user do not take proper precautions, Fraudsters take an advantage of this and make the user their victim and rob their hard earned money.

KYC stands for Know Your Customer- It is a compulsory process by which banks obtains information about the identity and address of the customers to ensure that banks’ services are not misused. Similarly, this process is adopted by the well-known mobile wallet providers.

Modus Operandi of KYC Fraud

To initiate the scam and dupe the user of the balance amount in his mobile wallet, the fraudster first sends a message with a contact number for the KYC verification and a warning that their E- wallet will be blocked if verification is not done.

Secondly, the target receives a link to download a mobile application to facilitate the KYC process. Clicking on this link results in the downloading the malware applications through which fraudster get the access of the target’s mobile phone.

Now, the fraudster see the PIN/password/pattern lock used by the target. After the collection of all necessary information, the fraudster withdraws funds from the target’s bank account linked with the mobile wallet.

Proactive Measures to protect yourself from such frauds

• Do not seek help from strangers to complete payment transactions.
• Do not download apps, except authentic ones, i.e., recommended by bank.
• Do not click on links received through SMS/Email.
• Use Earphones while speaking to such persons, also keep an eye on your screen.

• Use two factor authentication where one should be your fingerprint to authenticate.
• Be aware about the application provider’s terms of use and policy

• Complete your KYC via the certified KYC center. Details of the same can be obtained from official mobile wallet apps.
• Banks/application providers are now regularly sending emails and SMS to their customers educating them on how the UPI based scam works and what they should do to avoid being scammed. Do not avoid these SMS/emails.

Unfortunately, if one becomes the victim of the fraud, followings are the reactive measures;

Reactive Measures

• Activate call recorder on your mobile device to record fraudulent calls which can be utilize later as evidence.
• Disconnect your mobile from the internet, or even switch it off so that the fraudster cannot remotely access your mobile phone.
• Do not uninstall the APP.
• Do not format your phone.
• Preserve all the SMS, Email, Calls to submit as evidence for further investigation.
• Look for applications installed on your mobile device for any malicious or spyware.
• Inform your bank via their official E-mail address or official helpline number regarding the fraudulent activity.
• Alert the mobile wallet provider about the fraud via their official grievance portal or their official Email address with relevant screenshots, transaction ID, and other transaction details. 
• Report to the local police station/cyber cell in written giving details;
• Number from which the fraudulent call/SMS received,
  • Date and time of call/SMS
  • Details of the malicious application which the fraudster asked you to install.