The extent of loan fraud is rapidly expanding. Loan fraudsters do not lend loans; on the contrary, they take them from you. All of this is occurring because individuals are easily lured into the clutches of con artists. Because mobile phones are now widely available, the fraud network has grown much larger. There are a plethora of applications in the mobile playstore that offer to provide you with a low-cost personal loan. Because this type of fraud is new, not everyone is aware of how to avoid it. We are explaining how mobile app fraud is perpetrated under the guise of a loan and what the consequences are?
First and foremost, it is critical to understand how even well-educated people fall into the trap of deception in the name of obtaining a loan. Personal loans are given through a mobile app. According to one estimate, there are over 600 apps in India that are involved in loan fraud. A message with a link is sent to the phone in this case. When you click on the link, an alert goes off. You can receive this link’s message through phone, WhatsApp, or social media. The message flashes to click on the link given to get a personal loan in minutes. That’s where all the mess starts.
How does fraud happen?
Every loan fraud follows a very identical pattern. The best way to avoid this is to stay vigilant and not reveal any of your personal details out of greed. Always presume that no bank will be able to provide a loan from you using a single message or link. As a result, be cautious if you receive such a message in the name of loan recovery. Before sending the message, the bank sends the mail, and the bank’s agent calls you. It is extremely unlikely that the bank will want to offer a loan based on a single correspondence.
Fraudsters can send you a message with a link that they want you to click on. You will be asked to download mobile app from the Google Play Store. If you receive such a communication, be cautious because the bank does not issue such an order. Bank also doesn’t send out messages encouraging people to download the app. Do not open any links or install any apps.
It stars with stealing personal information:
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Callers, in fact, steal your personal information from your phone. This is the result of certain fraudulent apps. You can be duped if you download an app without doing any research or thinking about it and then allow it to access your phone’s messages. Fraudsters read your message and take information about your bank loan and EMI payments. They then inform you that your EMI is due on this day, but it must be paid immediately. For submission, you may be prompted to make an online payment. Your money will be squandered if you do this. Fraudsters may claim that you have received an offer from the bank to pay off your full loan in exchange for a lower payment. By transferring the money, you can become entrapped in this greed.
If you are requested for money up front in exchange for a loan, be wary because no bank or corporation will ask for a processing fee before granting a loan. Whatever money bank provides becomes part of your loan and is not required to be repaid first; instead, it is added to the total loan amount. The processing fee is included in the repayment of the loan amount.
What should be your Plan of Action?
Let’s see what we can do to avoid that now.
- If you receive a loan message on your phone, do not listen to it; instead, ignore it.
- If the communication has a link, do not click on it, even if you have forgotten about it; it could lead to a major disaster.
- To avoid being duped again, block the individual who sent the message or called you.
- If any information is requested over the phone or in a message, do not provide it. If you receive such a message or call, report it to the police or a cyber-crime unit.
- If you receive a call like this from an unknown number, report it and have it blocked.