How to Protect Yourself from Fraud While Taking an Online Loan

Taking a loan online is easy nowadays. Also, in the last two years when Covid-19 has changed everything, there was a drastic increase in digital transactions, and the same has been with the loan processing and disbursement, which was completely online. While this is fast and easy, it is also vulnerable to many types of fraud and cheatings. The following information will help you to understand the types of fraud and how to stay safe from them.

Red Flags that Tell You are Dealing with an Online Loan Fraud

We see many people getting affected by online loan fraud. Following are some red flags that you should know.

  • Calls, SMS, and WhatsApp communications from fraudsters are the most common way to avail personal financial details from customers. 
  • The fraudsters will focus on acquiring your personal and financial details rather than inquiring about your credit score and credit history.
  • Fraudsters will demand fees, advances, processing fees, and GST charges without even starting the loan application process, while these charges are always taken after the loan is approved. 
  • They will propose limited period offers and do not give you any time to think.
  • The fraudulent will avoid or deny sharing their registered address and other related information.

Techniques to Prevent Online Loan Scams

  • Keep your sensitive information private: Banks or legit lenders will not ask for your credentials or financial details over the phone so, never share such things with anyone.
  • Use only verified apps and websites: You must check if the lenders, lending websites, and their apps are legit and registered with authorized bodies or not. Always use end-to-end encrypted platforms for taking online loans.
  • Beware of phishing calls, SMS, and mails: Phishing calls, emails, and SMSs contain fraudulent links. It can cause financial losses and also breach privacy.
  • Use secure internet connections only: Using unsecured networks is not recommended while taking an online loan. It may record your details, PINs, and passwords for the loans that will result in fraud.

How to Stay Alert from an Online Loan Scam?

  • Stay informed: Newspapers and news channels always have the details about the reports of loan frauds. You must understand them in detail and always stay alert from any such mishaps occurring with you.   
  • Prevent confidentiality: Never share your personal information and details like PINs and passwords with anyone over chat, on a call or through email.
  • Keep changing your PINs & passwords: Passwords and PINs should be changed twice a year so that it’s not permanently recorded anywhere. It will protect you from any fraud.
  • Track your credit report: Checking your bank statement once a month is good, but checking your credit report is even better. If someone is exploiting your details for any financial advantages, it will reflect in that credit report, and you can correct them.
  • Watch odd transactions: Permit two-step authentication on all your personal and corporate accounts. Receiving text messages will help you to keep track of any suspicious transactions.

If you are looking for a quick, secured loan online, choosing top lenders like FlexSalary is the best option to stay away from frauds. FlexSalary loan application process is short and simple and instant approval is provided after online KYC is completed. At FlexSalary, you will be approved for a line of credit, and interest is charged only for the amount that you use from your approved credit, and not on the total amount of funds that you have borrowed.