When you are in a financial emergency and require some quick funds, there is no better solution than a personal loan. Personal loans are quickly processed without collateral, giving you easy access to finances to meet your emergency needs.
These days, many banks and financial institutions offer instant online personal loans at attractive interest rates.
However, the convenience and comfort that paperless personal loans provide also come with risks that borrowers should be aware of.
Let us talk about the implications of cyber fraud associated with online loan application processes you should keep in mind while submitting your documents.
What Is Cyber Fraud?
Cyber fraud refers to fraudulent activities like identity theft and other scams committed through the internet. With the increasing demand for paperless personal loans, more and more lenders and banking institutions are introducing the convenience of applying from home comfort.
Borrowers can fill out an application form through the internet and submit their loan requests without visiting the branch in person. The lender verifies the documentation and processes the loan within hours, disbursing the amount within 48-72 hours.
However, this advancement in technology has also given rise to instances of scamming where fake websites and apps take advantage of people’s needs and misuse their documents and information, resulting in monetary and other losses.
These cybercriminals steal personal and financial details and make money by using the information to make purchases or sell the details to third parties. Users looking for a low-income personal loan should be aware of fraudulent activities and exercise caution before submitting their documents online.
How to Spot Online Frauds?
When you require funds and have a poor credit history, getting trapped into personal loan offers is easy. However, it is essential to beware of scammers waiting to benefit from your desperation. You might see advertisements for instant personal loans on your phone or receive mail that guarantees you a loan without any restriction.
Before submitting your documents for a paperless personal loan, here are some red flags you should be aware of.
No credit verification – Reputed financial institutions are strict about credit verification before offering personal loans.
An individual’s credit history plays a vital role in deciding the interest rate they are offered. If a lender shows no interest in your credit history, it is possible that they are only interested in your financial details and are probably a scammer.
This is all the more common with services offering low-income personal loans. While not all such companies are fraudulent, many who relentlessly try to peddle loans with few barriers might be.
Limited period offer – A loan offer should not expire within hours or days and should stand long.
If the lender or customer support executive seems to pressure you to apply for the loan at the earliest, there is a good chance of the offer being a scam.
Website security – Whenever you visit a lender’s website, check for its security by looking at the ‘https: //’ in the web address, which guarantees genuineness and protection against identity theft.
A reliable website ensures that the information you provide is secure and won’t be exposed to anybody. If your lender doesn’t have a website, check its physical address. Also, it is better to avoid apps and sites that don’t disclose their location or license details.
Guaranteed approval – It is always a good idea to avoid clicking on an ad that guarantees you loan approval. Unfortunately, you are likely to come across a large number of advertisements that claim to give you guaranteed low-income personal loans.
Approval of a loan depends on various factors like your document verification and credit history, so any such claim should indicate a red flag.
Unclear communication – Scammers generally send you emails and SMS about processing a quick paperless personal loan. Such messages may force you to believe that it is easy to get a loan without any credit score requirement.
It is important to note that such lenders misuse your personal and financial details. Therefore, avoid falling prey to such scammers and trust only genuine lenders.
Instant personal loans are one of the biggest trends, and many players have entered the landscape. In such a scenario, it is the user’s responsibility to be mindful of the person they are dealing with. Consumers must be all the warier when dealing with paperless personal loans or low-income personal loans.
You might end up falling into identity theft or other scams in an attempt to obtain low-interest rates or quick funds. This is why it is essential to seek out reputed service providers such as EarlySalary, a registered NBFC with a PCI DSS certification.
Consider doing extensive research about the lender and the offer before disclosing your details or sending any documents to ensure you don’t become victims of cyber fraud.