Instant Loan App Frauds You Need to be Cautious of
Nowadays, app stores and various internet platforms have a plethora of apps providing instant loans thus enticing us to use them to meet our ever-growing financial needs. Lockdown induced by the Covid pandemic has stressed families financially and the offer of availability of loans instantly is something hard to ignore. While this may seem a boon from a broader view, the closer picture depicts this has paved gateways for scammers and fraudsters to come up with newly devised ways to cheat us, such as instant loan app fraud.
In order for individuals to not get scammed, they should be pro at distinguishing between original apps and fake ones launched with not so good intent. The reason, why you need to be a “Pro”, is because being a layman would find it extremely difficult as the scammers spend a lot of endeavours to make their apps look more original than the Original Ones themselves.
Financial frauds are growing at an explosive rate ever since the pandemic has hit us hard. As the cases keep on rising, being well versed with correct knowledge and awareness can gear up us to save our finances.
According to RBI, till last year more than 80 Android Application stores were occupied by 1100+ instant loan providing apps. Shockingly, close to 600 apps of these were laid down as a trap by scammers to rob off individuals falling prey to their gimmicks.
Here are some signs that indicate the instant loan provider application is not legit
- The Lender App is not concerned about your KYC details
In an age where the government is insisting everyone keep track even of their minimalistic transactions, these apps would be ready to lend you the amount without any sort of documentation and regardless of your past record/CIBIL score.
- Compels you to act instantly
They will often exert uncalled-for pressure on you to apply for a loan immediately. The whole motive behind this is to scam you before their cover is blown by some previous victim's report and the app store platform is snatched away from them.
- Won’t disclose their concrete charges
These lenders won't reveal the actual details of applications and would vaguely promise you a 0% ROI (Rate of Interest) on the repayment of debt. Back out from these luring ASAP.
- Lender's website isn’t credible
Usually, these websites are devoid of an authentic SSL certificate. Hence, you wouldn’t be able to spot the padlock symbol before their domain name/on their website. These websites are incapable of securing your data and financial credentials and cannot be authenticated. Hence, it's always a wise decision to avoid trusting lenders with such low trust score websites.
- Absence of a verifiable physical address
To avoid legal consequences these apps/websites won’t ever reveal verifiable office address/contact details. If you can’t locate these details on their website, you have your warning indicator.
- App taking irrelevant permissions
One methodology used by these instant loan app fraud companies to recover lent money is to extract contacts from your phone and then blackmail you to harass them. Many times they even message or call your contacts to put pressure on you and humiliate you. In several cases, it has been found that such companies have stolen personal photographs from users’ phones and posted them on disreputable websites. So, whenever a loan app is asking for permissions to read your contact, SMS, gallery, etc., immediately stop there.
Here are the measures you can take to sideline the instant loan app fraud
- Check if the Lender is approved by RBI
The very first verification you have to do is check if the app is registered with RBI. Apps not adhering to RBI norms may cause you present and futuristic troubles. A list of approved lenders by RBI can be found on the Sachet portal RBI.
- Be vigilant about the loopholes
Unlike authentic RBI approved loan apps, fraud ones don’t or seldom have a website. Even if they have managed to acquire a spot among listed apps, a thorough run up through their websites privacy policies and reviews section will prove to be a wise and cash saving decision for you.
- Do not fall for low interest rates
The most common way these apps lure you is via offering an extremely low or negligible rate of interest on the repayment. Such apps extract out heavy pre-payment and processing charges from you.
- Install a good Cyber Fraud Protection App in your device
Usually, these lenders direct you to insecure and threatful links in order for you to submit your details in the name of the loan request application. Having a fraud protection app like FinLock installed on your device is always an ace move. It not only saves you from scammy websites and fraudulent apps but also guards you with Cyber Fraud Insurance worth Rs 1,00,000.