Source:shatanmi.com

10 Common Cash Loan Scams & How to Avoid Them

Fraud is constantly happening around us, and it is becoming an increasingly common phenomenon. The reason for that is the great development of internet companies and among so many companies there is always a certain number of scammers that people should pay attention to. However, how to protect yourself from such types of fraud?It is a question that has plagued a large number of people, but we have the answer to it. Since most of the work is done over the Internet, a lot of sites are not legitimate and they are just a danger that is constantly lurking. Such an organization steals from people both money and personal data. In this way, without your knowledge, they impose loans on you, and by the time you realize this, the debt is already so great that you cannot repay it.

Source:thecitypointclub.co.uk

On the other hand, there are those who do not stop annoying people through various ways of communication such as calls, messages and more. In the end, they did exactly the same as the previous fraudsters. Don’t allow yourself to find yourself in the role of a victim of loan scam, and we will explain to you below how to avoid them.

Scammers use various tricks to entice you to fall prey to their offers and thus take away all your money, some of the most common attempts they use are:

1. Payment in advance

Source:blogs.tallysolutions.com

As much as this may seem to you exclusively as a harmless compensation that the lender can reasonably ask of you, be careful. Why do we say that? We advise you for this reason because this can only be the background of some illegal action. Isn’t it suspicious that someone there is asking for money without prior service?

You will agree with us that it is by no means logical to give someone money while asking them for a loan. If you come across something like this, 99% is a scam. Those real lenders will expose you to all the fees and the future process in advance, and generally nothing is paid in advance.

2. Offer via telephone

Source:smefinanceforum.org

Did you know that it is not legal to offer loan over the phone? If this happens to you, by no means be gullible. Any type of offer must be exclusively in written form and in no other way. It must also contain all the necessary fees.

3. Wire transfer

Before any cooperation, check who you are dealing with. You need to immediately look for the address of your lender and investigate with the help of a lawyer or financial regulations who you are dealing with. This means that you need to make sure that the lender is doing the job legitimately. It is a sign of alarm if you have not done anything, and he asks you to hand over some kind of compensation. This is an alarm to do what we advised you to do.

4. Failure to check your credit rating

Source:investopedia.com

Every lender that does legitimate work will first check your credit status. This assessment refers to checking the possibility of cooperation, because if you are not creditworthy, you will not be a suitable candidate. On the other hand, if you have communication with someone who is not interested in your creditworthiness at all or approves your large loan – this is not good. They are probably not legal business and you have nothing to do with such a lender for your safety. The only exception may be rapid cash offers and you can click here for more info.

5. Suspicious name

The post office box address of the lender is very suspicious. Experienced scammers often use the names of other companies or use their locations to look authentic to you. Don’t fall for something like that, but check immediately with the help of companies that deal with this, and they will confirm everything you need to know.

6. Personal information

You know very well that the main target is the personal information of many fraudsters, not only when it comes to credit, but also everything else. However, this is a good reason for them to ask you for something like your personal data. Of course, you will not have your social security number, account number, etc. give it to anyone, so don’t trust a potential lender right away.
Before you take any step in cooperating with him, first check if you are dealing with the right one. Our advice is to provide such information exclusively to a credit institution for which you have all the evidence that they are operating legitimately.

7. State registration

This is another way you can detect a scammer. More precisely, before entering into a business relationship, you can always check in your state where the person is registered. Every lender must do this if they are legitimately engaged in loan intermediation. Of course, you need to take more steps to make sure you do business with the right people, but this is definitely one of them that will bring you closer to the truth.

8. Reviews

Reviews are a great thing that can say a lot about something. Look at it this way … When you want to watch a movie or go to a new restaurant, be sure to look at the reviews and mostly decide on that. On the other hand, it doesn’t hurt to watch a bad movie or make a mistake with a restaurant. However, if you do it for less important things then imagine how much you risk with important things like money or personal data. If you make a mistake, the damage is huge and sometimes irreparable. Focus on reputable lenders, and you can do it very easily – via Google or social networks. Today, at least, it is very easy.

9. Customer Service

Source:gmrit-solutions.com

Try to find customer service, and if it does not exist, then it is a very suspicious. It is best to bypass such companies, and don’t even settle for bots. Every respectable company in this business has this service and all the necessary answers to questions as well as other additional information.

10. Red flags

These are some more warning signs that we haven’t listed, and you may not notice because they are very small and sometimes negligible. However, open both eyes in this case and keep in mind that serious lenders will never make stupid mistakes. These are errors like spelling, punctuation, or grammar. This is simply not professional, and that raises doubts as well.

Conclusion:

We hope that this text has helped you see ways in which you can avoid all the pitfalls that lead to loan scam. It is important that you adopt our advice, because today fraudsters are finding new ways every day, as internet technology develops more and more.


Peter is a freelance writer with more than eight years of experience covering topics in politics. He was one of the guys that were here when the foreignpolicyi.org started.

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