How To Be Aware Of & Avoid Data Phishing Loan Scams


The financial sector is no exception when discussing how demand drives supply in any market. When a certain industry expands, and an increasing influx of players comes along, an unwelcome corollary has been cropping up with increased frequency. For people being defrauded through deceitful entities, This is an alarming rate of posing as legitimate financial organizations. When talking about loan fraud in India, there pops up a new story every day. There has been an increase in the reportage about people losing property, money, and, in a few extreme cases, even their lives due to such fraudulent scams while availing instant money in the past few years.

Even though frauds through instant personal loans schemes and offers are pretty common and anyone could be a victim but can also be prevented with the right amount of awareness, knowledge, and scrutiny. Let’s now acknowledge how an individual can avoid such scams and what a loan scam consists of.

Data Phishing scams to be aware of-

Data phishing – with the increasing number of smartphone and internet users in India, the percentage of scams and fraudulent activities targeting them has also been rapidly growing. Vulnerable individuals, such as the financially illiterate or elderly, are especially targeted for financial fraud. However, none of us are unaware of their negative and destructive impact. Data phishing is typically performed by fraudsters in the guise of financial services providers working in a well-known bank or companies peddling attractive new schemes and offers for an unsecured loan.

The most common way of targeting people is through false representation in the case of loan app scams. An individual may act as your financial service provider’s representative or a credit score analyzer and visit your workplace or contact you through an email, call, or SMS requesting your information, like an OTP, pin, or card number. When the targeted individual provides these details to the scammer, they access their accounts and begin pilfering your funds through transactions or transfers.

In a few cases, fraudsters build webpages to assemble the websites of financial institutions. Till you look closely, you can be scanned to enter your information on a fake website and grant them access to your bank accounts.

To avoid falling as victim to this phishing scam, here’s what you must watch out for –

  • Don’t drop out sensitive information such as card numbers, pin, and OTP. A legitimate financial organization or your bank will never ask for this information via email, call, or SMS.
  • Whenever an unknown calls you and claims to be your bank representative, ensure to verify their identity before taking forward the conversation. In addition to it, go through the bank’s official website and call the bank’s number to confirm if the call was real or a fraud.
  • Refrain from entertaining anyone who pressurizes you to make an immediate decision to avail of a good loan deal. Never agree to pay fees to a credit line to avail of a loan faster.
  • Whenever you log in to a financial institution’s website, ensure it is genuine. Pay keen attention to the URL and ensure it is secure and safe. Do note that the URL is HTTPS and not just HTTP.

Whenever it comes to availing a loan, the most partial point to be kept in mind is that it must seem pretty good to be true. Red flags to be closely considered before availing of a loan option include the following:

  • Unrealistic, low-interest rates.
  • Additional offers to sweeten the deal.
  • Zero due diligence on the lender’s part.

Moreover, when choosing a lender, make sure they follow regulatory mandates and best practices to create your loan journey hassle-free and transparent.

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