Due to restrictions on movement caused by the COVID pandemic, there has been a shift towards digital payments. We can see examples of this in our day-to-day life. We prefer to do all our payments digitally rather than visit local grocery stores, malls, and markets. The way people borrow money has also been affected by digitization. In this era of touchless transactions, online personal loans have become more convenient and digital, allowing customers to access funds online faster with less documentation.
However, in times of urgent financial need, especially such times, you must not fail to consider the possibility of digital fraud while applying for a digital personal loan.
The world is passing through a difficult period and the emotional and financial upheaval caused by the pandemic has left people vulnerable. Such times are ideal for fraudsters who look for new ways to earn money. With so many people at home and spending so much time online, the opportunity to get scammed is tempting for some unscrupulous individuals.
Here are some red flags that you may be dealing with an online loan scam:
1. First and foremost, it is important to recognize that one of the most common methods of these fraudsters is to make random phone calls, SMS and WhatsApp communications and obtain the personal information of the victim.
2. Instead of knowing your credit history or score, the scammer will focus on obtaining personal information such as Aadhaar or PAN card number and bank account number.
3. They may also require advance payment for loan processing or GST. On the other hand, these charges are assessed after the loan is granted.
4. They will present you with a limited time deal and give you very little time to decide.
5. They shall also refrain from disclosing their registered address or any other information about their company.
Here are some effective techniques to avoid such frauds:
1. Keep your sensitive personal information private:
Bank officials will never ask for sensitive personal information or financial details over phone, email, or SMS. As a result, never give your personal information to an unknown third-party agent.
2. Only verified apps should be used:
There are many companies out there that provide banking and finance services. It is recommended that you only use verified lending apps, otherwise you may become the next victim of an online scam.
3. Verify that the website you are visiting is secure:
Secure websites are usually prefixed by HTTPS:// instead of just HTTP://. Check to see if the website you are visiting is safe and secure.
4. Beware of Phishing Calls, SMS, and Emails:
A phishing caller can pose as an employee of a bank or financial institution and ask for personal information. Never give such information over the phone, via SMS or by email. If you come across something like this, immediately report it to the appropriate authorities.
5. Use a secure internet connection:
Whenever you make a payment or submit any sensitive personal financial information, you should ensure that you are logged into a secure network. Avoid using any unsecured public Wi-Fi connection that may give access to cybercriminals.
Your personal information is just like a goldmine for the scammers
What makes you a target for cybercriminals? Fraudsters seek a similar identity to you to avoid creating doubts about their activities.
How to stay protected from online fraud:
What to do if you have become a victim of an online instant personal loanscam?
If you have fallen victim to an unauthorized lending website or app, don't panic. Firstly, reach the nearest police station to report the matter, and after taking the required information, uninstall the mobile application immediately. You will be saved from harassment and hassle.Never download personal loan apps that are unauthorized and always check user ratings and reviews before downloading. And, before signing or accepting the loan terms, check your EMI using the Personal Loan EMI Calculator and compare it with the EMI amount offered by the lender.
If you are looking for a quick, secure, and online instant personal loan choosing top lenders like Poonawalla Fincorp is the best option to stay away from frauds. Poonawalla Fincorp Loan application process is short and simple and instant approval is granted once the online KYC is completed.
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