Meeting emergency expenses is easier if you get a loan from a bank or financial institution. However, you should be careful when borrowing money, since there are many fraudsters out there who will cheat you by giving you loans at attractive interests rates.
Fraudsters are always looking to rip off innocent people who apply for loans from banks. It is best to keep an eye on the news and read newspapers regularly so that you will learn how fraudsters take advantage of people.
Advanced Fee Scam
Don't ever deal with a bank that asks you to pay an advance fee to get a loan disbursed. In no case will a bank ask you for an advance fee before disbursement of a loan or loan agreement. There are certain fees to pay, such as a processing fee, documentation verification fee, etc. However, these fees are stated within the loan agreement, and not verbally.
Man lost Rs1.91 lakh while availing a loan online
If you want to buy the house or car you've always wanted, then you will need a loan. In Visakhapatnam, a man was looking for a home loan to build a new house, and he looked online for it. An unknown individual called him and claimed to be a representative of Mahindra Finance Services in Delhi. A caller said he would help the victim get a loan and asked him to send details about his property and a photograph of his Aadhaar card to firstname.lastname@example.org. After sending the details, the caller informed the victim that the loan would be approved shortly. The processing fee and an additional amount as insurance charges had to be transferred by the victim to the lender in order to obtain the loan amount. The victim believed this to be true and transferred Rs 1,91,211.
How to avoid loan fraud?
1. Research lenders carefully before getting a loan as there are many frauds in the market that trick people into paying for loans they can't afford. Make sure that the lender has a physical address, if they refuse to give it, do not trust them.
2. Don't provide personal information over the phone. You should never give personal information to a lender over the phone. A legitimate lender will never ask you for personal information over the phone.
3. It is recommended that you stay away from offers that seem too good to be true. Be very careful before signing a contract with a lender who is offering very good terms. Fraudsters usually cheat innocent people by offering attractive offers.
4. It is also possible to read online reviews for the lender. If there are a lot of negative reviews, it would be advisable to stay away from the lender.
5. It is recommended that digital escrow platforms be used for payment. When making an online payment with Escrow, you do not share your financial information with anyone. There is a platform for escrow called Vouch.
How does digital escrow work?
In digital escrow, a third-party account holds the money deposited by the buyer until the seller fulfills the terms of the contract. The escrow company supervises the transacting parties.
What is the role of Digital Escrow in preventing online fraud in India?
Digital escrow services are offered by many companies in India. Among the most trusted is Vouch.
Vouch’s Digital Escrow service is a transparent way for buyers and sellers to build trust and secure a clean transfer of product and payment. Sellers can feel assured that they will be fairly compensated promptly, and buyers will feel confident that their order will be delivered as expected and on schedule. Vouch Digital Escrow keeps you updated and informed at every step of the transaction process till the end. Vouch’s professionals are always available to assist you with all queries that you may have during the entire transaction process.
There is no scope for deceit or fraud since the payments, shipping, delivery, and execution are carried out under the honest and watchful eyes of the Vouch’s professionals. With Vouch, any business transaction becomes transparent, uncomplicated, and hassle-free. If you ever come across a fraudster asking for OTP, asking you to scan a QR code, or asking you to click on phishing links, you can simply refuse and ask him/her to proceed with the transaction through Vouch.
This is Fraud Story #186. Check back here for more fraud stories and scams that you can protect yourself from.
Safety is not just about protecting your credit, debit card number, and UPI accounts. It's about having control of your money till you've received the product or service you bought online!
Note: This is a good-faith initiative to educate the world about avoiding frauds like these and how to act when you're becoming a victim of such a situation.
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