Due to the COVID pandemic’s limits on transportation, there has been a push toward digital payments. In our daily lives, we can witness examples of this. Rather than visiting local grocery stores, malls, and markets, we prefer to make all of our payments online. Digitization has had an impact on how people borrow money. Online personal loans have become easier and more digital in this era of touchless transactions, allowing users to receive funds online faster and with less documentation.
However, you must consider the danger of digital fraud while applying for a digital personal loan, especially in times of urgent financial need.
The world is going through a difficult time, and the pandemic’s emotional and financial upheaval has left many vulnerable. These are opportune times for con artists looking for new ways to make money. With so many people at home and so much time spent online, the possibility to be scammed is appealing to some unscrupulous people.
Here are some tell-tale signs that you’re dealing with an internet loan con:
1. First and foremost, it is critical to know that one of these fraudsters’ most typical strategies is to make random phone calls, SMS, and WhatsApp chat to get the victim’s personal information.
2. Rather than learning about your credit history or score, the fraudster would concentrate on acquiring personal information such as your Aadhaar or PAN card number, as well as your bank account number.
3. They might ask for a down payment or GST in advance for loan processing. These fees, on the other hand, are levied once the loan is approved.
4. They will present you with a limited-time offer and give you a short amount of time to make a decision.
5. They must also keep their registration address and any other information about their business private.
Here are some strategies for avoiding such scams:
1. Don’t reveal any crucial personal information
As per some best personal finance blogs, over the phone, email, or SMS, bank representatives will never ask for sensitive personal information or financial details. As a result, you should never send your personal information to a third-party agent you don’t know, says business finance blogs.
2. Only utilize programs that have been verified
There are a lot of companies that offer banking and finance services. You should only use verified loan applications if you don’t want to become the next victim of internet fraud.
3. Check to see if the website you’re viewing is safe
Instead of merely HTTP://, secure websites are frequently prefixed with HTTPS://. Examine whether the website you’re visiting is safe and secure.
4. Be Wary of Phishing Phone Calls, Text Messages, and Emails:
A phishing caller may impersonate a bank or financial institution employee and request personal information. Never give up personal information over the phone, by text message, or via email. If you come across something similar, report it to the appropriate authorities right away.
5. Make sure you’re connected to the internet over a secure connection:
Make sure you’re logged into a secure network whenever you make a payment or submit any sensitive personal financial information. Avoid using any open public Wi-Fi connection that could provide cybercriminals with access.
Scammers treat your personal information as if it were gold.
What makes you a cybercriminal’s target? To avoid raising suspicions about their actions, fraudsters adopt an identity that is similar to yours.
What steps can you take to safeguard your personal information?
To keep your information safe, keep it to a minimum. Only use it when required. It may seem normal to provide your first and last name, as well as your address when creating an account on a website, but if the website suffers a security breach, the information could slip into the hands of scammers.
How can you keep your login credentials safe?
A cybercriminal can obtain access to your accounts and commit internet fraud using your username and password. On the dark web, an uncontrolled portion of the Internet associated with illegal activities, your login information could be sold to other cybercriminals.
To protect your login information from being stolen, create a strong password that is unique for each account and enable two-factor authentication whenever it is available. To keep your home computer safe, keep your software and antivirus up to date.
How to avoid being a victim of internet fraud
Keep an eye out for anything strange while reading the newspaper or watching the news. Loan scams and frauds are reported daily, so staying informed will help you avoid becoming a victim, says best personal finance blogs.