Availing EMI moratorium? You may lose all your money if you do this

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Updated: Apr 13, 2020 7:52 PM

To provide relief to such aggrieved persons, the Reserve Bank of India (RBI) has declared an EMI moratorium, which allows a borrower to postpone loan repayment for 3 months.

Coronavirus Outbreak, Novel Coronavirus COVID-19, loan, Reserve Bank of India, RBI, EMI moratorium, interest on loan, EMI Moratorium Frauds, SBI, Axis BankIt’s better not to avail the moratorium, unless it is difficult for you to pay EMI due to the lockdown.

With the economic activities coming almost to a standstill after the imposition of the nationwide lockdown to contain the spread of highly contagious Novel Coronavirus Covid-19, many people are facing financial crisis due to loss of income. For such people, the crisis will deepen in case they have to pay EMIs on some loans.

To provide relief to such aggrieved persons, the Reserve Bank of India (RBI) has declared an EMI moratorium, which allows a borrower to postpone loan repayment for 3 months.

It may, however, be noted that there is be no relief in interest during the moratorium period and the interest would continue to accumulate during the 3-month period.

So, it’s better not to avail the moratorium, unless it is difficult for you to pay EMI due to the lockdown.

Moreover, cyber attackers are on the prowl to cash in on every opportunity provided by many-fold increase in online activities due to remote working, online transactions, online payments, etc.

In the last few days, multiple banks including Axis Bank, SBI Bank, ICICI Bank and many more have warned their customers to protect their banking information against the EMI Moratorium Frauds.

In a new modus operandi to gain access to the customer’s banking details, fraudsters are claiming to:

  • Postpone EMI payments
  • Request to share OTP, CVV password or PIN related to banking accounts

In its alert, State Bank of India (SBI) says, “A new style of cybercrime has been started by fraudsters. In such frauds, customers get calls asking them to share their OTP in order to postpone their loan EMIs.”

“Once the OTP is shared, the amount is immediately siphoned away by fraudsters. Please do not share your OTP,” warns SBI.

On the other hand, Axis Bank, in its alert, says, “Axis Bank requests you to protect your banking information against EMI Moratorium Frauds. Fraudsters have started a new modus operandi to gain access to your banking details. Imposters may contact you to help postpone your EMI payments and request you to share OTP, CVV, password or PIN related to your banking accounts.”

“Stay aware! If the details are shared, the fraudster can have unwarranted access to your banking information leading to financial loss. Beware of EMI Moratorium Frauds!” Axis Bank warns.

In fact, a report published by Barracuda Networks finds there has already been a steady increase in the number of COVID-19-related email attacks since January.

Between March 1 and March 23, Barracuda Sentinel, a monitoring platform infused with artificial intelligence, detected 467,825 spear-phishing email attacks, with 9,116 of those detections were related to COVID-19.

It looks like a sincere attempt to gain access to the banking information, leading to worldwide financial loss.

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