Safeguarding Savings: EPFO’s New Timeframes Aim to Combat Account Fraud

The Employees’ Provident Fund Organisation (EPFO) has recently introduced new regulations to streamline the process of freezing and de-freezing Provident Fund (PF) accounts. These measures aim to boost efficiency and security while safeguarding the funds against potential risks like fraud, impersonation, and forgery.

Under the new Standard Operating Procedures (SOPs), the timeframe for freezing accounts is limited to a maximum of 30 days, which can be extended by an additional 14 days for due diligence. This is a significant development, given EPFO’s role in supervising over 60 million subscribers and managing funds under the Provident Fund, Employees’ Pension Scheme, and Employees’ Deposit Linked Insurance Scheme.

The primary goal of these new guidelines is to protect the capital in the accounts and prevent unauthorized withdrawals. In cases where there is a possibility of fraudulent activity, it’s necessary to freeze operations related to Member IDs, Universal Account Numbers (UANs), or establishment accounts.

EPFO has implemented multiple layers of verification to enhance account security. This includes identifying potential cases of suspicious accounts or transactions and taking swift actions to recover funds and resolve issues in the event of irregularities or fraud. The SOPs also dictate that fraudulent cases be reported to the authorities for criminal prosecution, holding field office officials accountable for any identified lapses.

In instances of fraudulently withdrawn money, the concerned regional offices of EPFO will quantify the amount and recover it, including any applicable interest. These funds will then be re-credited to the genuine member’s account.

These steps are part of EPFO’s ongoing efforts to ensure the security of the funds and the integrity of the EPFO system, providing a more robust mechanism to protect against and address fraudulent activities.



Send Us A Message