Bank needs accurate customer data to send OTP codes, transaction notifications, and other banking information. Data update is required to ensure that you can transact safely and comfortably.
SIM Card Recycle
When you change your mobile number, the Mobile Network Operator will activate and resell the number within a certain period of time. This process is known as SIM Card Recycle. Fraudster can buy back the number and misuse your credit card.
If you do not update the data regarding the change in your mobile number to the bank, fraudsters can use this loophole by buying your recycled number and misusing your credit card for transactions.
Fraudsters who already know your credit card details (card number, expiry date, CVV code) can then easily transact online using the OTP code which will be sent to your old number.
For this reason, it is important to inform the bank if there is a change in your mobile number, to ensure that the OTP code is sent to your new number.