In the age of digital convenience, instant credit is just a tap away. However, as legitimate lending apps flourish, so do fraudulent ones, preying on unsuspecting users. With a plethora of applications available on online mobile-app stores, it is easy to fall prey to fake lending apps without adequate financial literacy. Read this article to the end to learn how to distinguish between a genuine and phoney lending app and safeguard yourself from loan fraud.
5 Tips to Spot a Fraud Loan App
Fake loan apps often mimic the appearance of authentic digital lending applications. Some even use names of genuine loan apps, making them hard to identify. However, subtle differences set apart fraud loan apps from genuine lending apps. Here are some essential aspects to look out for to identify fraudulent apps.
Negative online
reviews
User reviews on online app stores provide
first-hand insight into the past user experience. Applications that
have lower ratings or too many negative reviews may be fraudulent.
Any user who has fallen prey to a fake app or loan scam before is
likely to leave a review as a warning to others. It is good practice
to go through the reviews section before downloading any lending app.
Asking for advance
fees
Fraud loan apps often demand payment of advance
fees, promising faster processing or guaranteed approval in return.
Once you pay, they vanish or curb all communication channels. Never
fall prey to such demands without appropriately verifying the
authenticity of the loan app.
Lack of RBI
registration
A list of registered Non-Banking
Financial Companies (NBFCs) and Asset Reconstruction Companies
(ARCs) is available on the official website of the Reserve Bank of
India. Conversely, you can also scrutinize loan apps and their
official website for such affiliations. The absence of any such
compliance indicates that the app may be fraudulent.
No Physical Address or
Contact Information
Fraudulent lending apps often
operate without a physical address, such as a registered office
address or customer support number. Always look for such information
on lending apps and their websites to verify their authenticity.
Non-Secure Website or
App
Digital lending institutions ideally deploy data
security measures to safeguard user information. These include
application and website security protocols. Ensure adequate security
before entering your personal information in online loan applications.
How to Protect Yourself from Fake Loan App Scams
Identifying fake lending apps is the first step to protect yourself from online loan fraud. However, following certain best practices is critical to safeguarding yourself from grave consequences such as identity theft and monetary losses.
Download from trusted
sources
The first line of defence is to use trusted
sources to download any digital lending application. This is because
official app stores deploy security measures to detect and remove
fraudulent applications. Never download any application by clicking
on links or from questionable websites.
Avoid phishing calls, SMS or
emails
Scammers resort to phishing to hide their
original identity and clickbait users into clicking on malicious
links. Never click on any link sent from suspicious mobile numbers
or email addresses. Additionally, always refrain from clicking on
advertisements with absurd offers.
Safeguard your personal
information
Authentic lending applications will only
ask you for relevant information related to your loan application.
Ideally, genuine lenders require your KYC details and proof of
income. Only submit your personal information if the application
appears to be reliable.
Use a secure internet
connection
An unsecured internet connection is a
technical loophole that scammers can use to steal personal
information. Since it requires specific technical expertise to
identify such loopholes, it is better to ensure that you are using a
secure internet connection.
Report suspicious
apps
Reporting a suspicious app prompts online app
stores to review their authenticity and de-list them, thereby
preventing further scams. If you are already a victim of an
attempted loan scam, stop all communications with the scammer and
file an official report with relevant government authorities.
Online Lending App – Dos and Don’ts
Even with advancements in cyber security, scammers come up with new designs to defraud potential loan seekers every day. Here is a quick checklist to follow when looking to borrow from a digital lending app.
|
Dos |
Don’ts |
|
Download apps from registered sources only |
Don’t click on suspicious links from unknown senders |
|
Use a secure internet connection |
Don’t download apps from untrustworthy websites |
|
Verify lending partners and/or RBI licensing |
Don’t pay advance fees without verifying |
|
Read user reviews and check app ratings |
Never share irrelevant personal information |
|
Look out for the lender’s secure website |
Stay away from too-good-to-be-true offers |
|
Ensure that the app provides data encryption |
Don’t use untrusted networks for financial transactions |
|
Check for Privacy Policies, Terms & Conditions, etc. |
Never provide irrelevant app permissions |
Why Poonawalla Fincorp Is Your Most Trusted Loan App
With so many digital lending apps crowding on official mobile app stores, it is easy to get confused and click on fraudulent loan apps. However, as your most trusted financial partner, Poonawalla Fincorp ensures that your fund needs are met without hassle while providing end-to-end protection for your personal information.
Here are a few green flags that make Poonawalla Fincorp a reliable digital lending platform for all your financing needs.
• Poonawalla Fincorp has physical
branches all over India, with a registered office in Pune and
corporate headquarters in Mumbai, Maharashtra.
• Poonawalla
Fincorp is an RBI-registered NBFC whose details are available on the
official website.
• Poonawalla Fincorp has been recognized as
the "Best BFSI Brand 2024", apart from various other awards
and accolades.
• The Poonawalla Fincorp mobile app is
available for download ONLY from the official Google Play Store and
Apple App Store platforms.
• The detailed Privacy Policy of
Poonawalla Fincorp is available for users on the official mobile
app.
• You can reach out to Poonawalla Fincorp on the
toll-free number 1800-266-3201 or write an email to customercare@poonawallafincorp.com.
To Conclude
Downloading and engaging with
fraudulent lending apps can lead to substantial monetary losses and
even personal data theft. Common red flags, such as non-compliance
with RBI regulations, lack of a secure website and physical
addresses, etc., are the first signs to identify a fake loan app.
Using a secure internet connection and downloading apps only from
trusted sources are some of the best practices for safeguarding
yourself from online loan fraud.
As an RBI-licensed NBFC,
Poonawalla Fincorp is committed to being your most trusted financial
services brand with personalised loan offerings. Download the app
from the official Google Play and Apple App Store and enjoy a secure
borrowing experience for all your financing needs.
