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EMI Moratorium Fraud: What Is It and How to Stay Safe?

  • Highlights

  • Fraudsters trick people in the name of postponing EMI payments

  • Never give access to your banking information

  • Know the tips to stay safe from EMI moratorium scams

EMI moratorium is a temporary suspension of the loan EMI in response to a temporary financial hardship. While it has been around for a very long time, it came to the forefront again last year. Amidst the nationwide lockdown due to the pandemic in 2020, the RBI granted a three-month loan moratorium to all borrowers whose instalments were falling due between March 1 and May 31, 2020. The relief measure was extended for another 3 months. But cybercriminals took advantage of this situation and started with online loan frauds on EMI moratorium.

How is EMI moratorium fraud done?

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Fraudsters are way cleverer than we can think! They contact the general public and pretend to be bank officials who can help them postpone their loan EMIs. The contact could either be through a phone call (from a call centre) or a text message or even e-mail. They then commit the fraud by requesting the victim to share confidential bank details like the CVV number, PIN, OTP, or password of the bank account. Once these details are shared, fraudsters easily get access to personal bank information and then commit online banking fraud. Giving this access to confidential bank information to unknown people, who claim to be bank officials, has caused serious financial losses to individuals as well as businesses.

Warning signs of EMI moratorium fraud

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To avoid being tricked by these fraudsters and cybercriminals, one must know the warning signs of EMI moratorium fraud:

  1. Fraudsters will trick you to share details quickly, not giving you any chance to think and act.

  2. If they will send a mail for EMI moratorium, it will not have any address or contact details where you can reach them.

  3. Grammatical or spelling errors are also common in fake emails offering EMI moratorium.

Easy tips to stay safe

Cyber fraudsters find new ways to scam people every day. The only way to beat them is always to be aware and alert. Here are some easy tips to stay safe from loan moratorium fraud.

  1. Never share confidential bank details like CVV number, OTP, passwords, and PINs of bank accounts or of debit cards/credit cards with an unknown person on call or message.

  2. Remember that no genuine bank or financial institute will ever ask you to share bank details for providing a moratorium on the EMI.

  3. Be very careful about the mode of the transaction when providing consent with the OTP, password, or making any online payment.

  4. Download anti malware software on android phones and computers as that will help lessen the chances of getting trapped in any online banking fraud if one unknowingly clicks on a link.

Lastly, be aware of the banking norms rather than responding to unknown calls offering loan moratorium. Remain vigilant and alert to fight against this growing online fraud.

Stay alert, stay safe from online frauds in India.

Savdhaan Rahein. Safe Rahein.

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