Emotions can be high when you need cash urgently
Never before have con artists been more successful and common. They target everyone and are everywhere; you are a target regardless of your age or gender. You cannot, therefore, afford to let your guard down. Regretfully, these financial crooks prey on people when and when they least expect it, feeding off the emotions of their victims.
The idea that scammers would create internet lending services seems odd. These people truly go that far—as difficult as it may appear, they will stop at nothing to achieve their goals.
When we have an urgent need for cash, we often become emotional and fall for the bait of a fraudster who provides a loan without first considering the loan’s legitimacy. The bait may be used on anybody, but it is most effective on first-time borrowers who are asking for a loan for the first time or have never had a loan granted before. Loan scammers can use a variety of methods to trick their victims into disclosing personal information or sending money.
Know the red flags
While loan fraudsters utilize a variety of tactics, these are some of the most prevalent red signs. First, avoid any lender that requires you to pay upfront costs by transferring money to them before being approved for a loan, especially if the company refers to these expenses as processing fees. Yes, some lenders may charge upfront processing costs, but reputable lenders will subtract the fees from the loan amount before disbursing the funds to you. If you submit the processing or upfront costs to the fraudster, the transaction is over—that is their interest; at best, you will receive a “sorry, your loan is declined” response.
Another, more typical strategy is for loan fraudsters to get personal information from you, such as bank account information, ATM numbers, CVVs, and Personal Identification Numbers (PINs). While some legitimate lenders may ask for your bank verification number and account data (name, bank, and account number) to guarantee proper paperwork and loan disbursement, fraudsters will seek your PIN and other account information that is unique to you.
Never fall for such a trap since no genuine lender would require you to supply your ATM card information and PIN; this is plain fraud. Once you disclose such sensitive information, your bank account is hacked, and you may notice fraudulent activities within minutes.
Don’t be a victim
Surprisingly, some fraudsters may look savvy by disbursing a loan to you, but they will merely trap you in onerous conditions that will convert you into their prey, especially if you collateralize the loan with a valuable item. These crooks are just interested in taking over your possessions. Knowing that we are often in a hurry and dislike filling out forms, fraudsters would instruct you to merely sign and fill out a few lines on their application forms while they finish the rest for you. Some would never provide you with a copy of the loan offer, and others would finish the full deal over the phone; don’t be a victim. Never fall for their tricks.
Make sure you carefully read any provider’s terms and conditions to ensure there are no hidden costs or confusing rules. Be skeptical of any lender who assures your approval without inquiring about your ability to repay the loan. Be wary if a lender pushes you to fake your information. It’s a red signal when a lender’s salesperson repeatedly solicits you to apply for a loan, even if you don’t need one.
Borrowing from a lender who has already been profiled by a reliable third party, like nairaCompare.ng, is generally safer since you may be more assured of the lender’s credibility. Frequently, the Central Bank of Nigeria (CBN) or state governments regulate and/or license the lenders that are included on FinancialExpert NG .Scammers exist, but you may prevent them by taking the necessary steps and using nairaCompare.ng as your go-to partner.
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