27-Mar-2022: Messages From the Reserve Bank of India (1)
RBI Releases Booklet on Modus Operandi of Financial Frauds
The Reserve Bank of India has published a booklet titled BE(A)WARE – Be
Aware and Beware! To educate the customers on how to remain safe from
fraudsters while carrying out financial transactions.
The Central bank in its booklet has written extensively about the common
modus operandi used by fraudsters and precautions to be taken while carrying
out various financial transactions. You can read the entire content of the RBI
awareness booklet here: ( The Link is also given at the bottom ).
RBI claims that this booklet, which has been compiled from various
incidents of frauds reported as also from complaints received at the offices of
RBI Ombudsmen, provides information to those who are inexperienced, or not so
experienced, in digital and electronic modes of financial transactions.
RBI’s Ombudsmen Offices and the Consumer Education and Protection Cells
(CEPCs) also revealed that sharing of confidential information by the
customers, knowingly or unknowingly, is one of the major causes leading to
financial fraud.
The booklet gives information on the common modus operandi used by
fraudsters and precautions to be taken while carrying out various financial
transactions.
The book is further divided into three parts -- Part A provides
information of commonly observed modus operandi; Part B suggests precautions to
be taken against fraudulent transactions relating to banks and non-banking
financial companies (NBFCs); and Part C explains the general precautions and
digital hygiene to be followed by the public.
RBI’s booklet also emphasises one’s need for keeping their personal
information confidential at all times and being mindful of unknown
calls/emails/messages. It also outlines the due diligence measures to be
followed while undertaking financial transactions.
It aims to enhance public awareness about various types of financial
frauds perpetrated on gullible customers while carrying out digital payments
and other financial transactions.
“The surge in the digital modes of payments witnessed in the past few
years gained further momentum during the Covid-19 induced lockdowns. Digital
payments enhance customer convenience by improving ease of doing financial
transactions.
“They also contribute to promotion of financial inclusion. However,
fraudsters are finding new ways to defraud the gullible public through various
ingenious methods,” according to a RBI statement.
The booklet elaborates on safeguards against commonly used fraudulent
techniques, such as, SIM swaps, vishing/phishing links, lottery, etc.,
including fake loan websites and digital apps.
It also gives details of the commonly observed modus operandi and
precautions to be taken against fraudulent transactions relating to banks and
non- banking financial companies (NBFCs), respectively.
“The booklet explains the general precautions and digital hygiene to be
followed by the public…The booklet emphasises the need for keeping one’s
personal information confidential at all times, being mindful of unknown calls
/ emails / messages, etc., and also outlines the due diligence measures to be
followed while undertaking financial transactions,” RBI said.
Complete Text of the Booklet given in the next Blog- (2)
