The way people borrow money has also been affected by digitalisation. Personal loans have gotten more convenient and digital in this age of touchless transactions, allowing customers to receive fast funds online with less documentation.
Some Red Flags that you’re dealing with an Online Loan Scam
1. First and foremost, it is critical to recognise that one of these fraudsters’ most common methods is to make random phone calls, SMS, and WhatsApp communications and acquire the victim’s personal information.
2. Rather than knowing your credit history or score, the scammer would focus on acquiring personal information such as Aadhaar or PAN card numbers and bank account numbers.
3. They may also require payment in advance for loan processing or GST. These fees, on the other hand, are assessed after the loan has been granted.
4. They will present you with a limited-time deal and give you very little time to make a decision.
5. They would also refrain from disclosing their registered address or any other information about their company.
Warning signs of Online Loan Fraud
- No credit check required
The scammer will not bother to check the credit scores and will put more focus on collecting personal details.
- Lender is not registered with the Government Legally
To continue in the lending business, it is mandatory for lenders to register with the government.
- No Physical Address
Lender does not provide any physical address or contact information to the victim. Once you transfer the money, he will stop contacting or does respond to calls/ mails. It will be very difficult to reach the scammer at later point.
- Advance Payment
Scammers might demand advance payment of certain fees in the name of GST or processing fees. No reputed banker will ask for payment before processing the loan application.
- Offer expires in few days
Scammers come up with limited period offers and ask applicants to make decisions quickly using scareware tactics, saying the offer expires soon. Basically, reputed bankers offer interest rates after evaluating your credit history.
7 Some Ways to Protect Yourself from Online Fraud
1. Awareness is the Key
When reading newspapers or watching the news, be on the lookout for anything suspicious. New loan scams and frauds are reported on a regular basis, and staying aware will help you avoid becoming a victim.
2. Confidential and Personal Information should Stay Personal
Don’t give out personal information over the phone, by email, or in an online chat room. You should make contact with the banks or other financial institutions with which you do business. Keep your credit card information out of unencrypted email accounts and don’t save passwords in plain text on your computer or phone. Make use of a password manager. There are numerous solutions available, and they are simple to set up.
3. Passwords and Pins Must Be Changed Frequently
Passwords and PINs should be changed at least twice a year. Also, join up for a free service that will notify you if any of your internet accounts have been hacked.
4. Track your Credit Report
Checking your bank statements once a month is a good idea, but ordering your credit reports is even better. They’ll show you whether someone has been exploiting your identity to make purchases that don’t show on your normal statements.
5. Tear Old Documents
When you no longer need a document that contains your personal information, shred it. If you’re self-employed, keep in mind that you must keep records of your earnings for at least 5 years after filing your tax return.
6. Keep an Eye on Odd Transactions
Set up all of the extra security features on your corporate and personal bank accounts. Protecting yourself from fraud can be as simple as using two-factor authentication and receiving text message notifications about suspicious transactions.
7. Don’t Fall For It
Don’t open the links to photos, videos and any attachments sent to you via mails by unknown senders.
Company offers you a safe way to avail of a personal loan whenever the need arises. It is a completely secure platform that protects the data shared by you. There are no hidden fees or charges. What you see on the website is what you pay. We offer tailored personal loans from Rs 50,000- Rs 10,00,000 for time frames ranging from 6 months to 60 months. You can choose repayment options according to your convenience. Once you service the loan for 6 months you are free to foreclose the loan without any prepayment penalty. When you are in serious need for financing, you are likely to be very vulnerable. This can expose you to unscrupulous elements who can take advantage of you.
How to spot a Legitimate Lender
A legitimate lender offers multiple clues if you know what to look for. Some of those signs of a real business include:
- Easy to Reach
The lender will have a physical address, telephone number, email available on their website. They may also have an online chat function. They’re easy to reach and have the online presence of an established business.
- Good Customer Service
The staff will be trained in customer service and employees of a reputable lender can answer your questions and offer suggestions when appropriate.
- Interest in Credit History
No legitimate lender is going to lend money without checking on your ability to pay it back. Even if they advertise that they specialize in those with poor credit, they’re still going to run a credit report and base their loan options on the findings.
- Search Reviews Online
The Better Business Bureau, Google Reviews and other review sites are terrific resources for vetting potential lenders. If you see multiple users tagging a business as a scam online, then it’s best to stay away.
- Complete Loan Terms
A legitimate lender will go over the loan terms with you and send them to you in writing too. They’ll be clear about terms.
- No Upfront Payment
Legitimate loan companies won’t ask for upfront payment either in cash or gift cards. This is a common tool that scammers use to get untraceable money from victims.