VMPL
New Delhi [India], March 24: In the age of digital lending, it's very important to keep your personal details safe. This not only protects you from falling prey to identity theft but also to instant personal loan scams, especially those involving micro-loans. Here is everything you need to know about reporting such scams.
What are Fake Micro-Loans?
These are collateral-free personal loans with small amounts and short tenures that fraudsters take by forging your identity. Using your PAN and Aadhaar card details, scammers apply for a fake loan in your name. Since they have all valid ID proofs, getting approval for these is usually easy.
In some cases, they get access to these documents by pretending to be a legitimate lender or bank. Once the individual gives all their valid ID proofs, often thinking they are applying for a loan, scammers misuse these details. Soon the borrower will get approved for the loan but not receive the funds.
How Does this Happen?
There are many ways scammers can take your information. First is phishing, where they pretend to be a legitimate lender to collect your information. They may also hack the website of your bank or credit card company to steal your information. If not, they may get their hands on your details through other options.
For example, when you check in at the hotel, you need to provide a valid form of ID. This can be misused. If you are using a public network or unsecured website, scammers can easily get access to your documents and personal details and then use them to apply for a fake loan.
How to Detect it
The easiest way to detect fake personal loans is to check your credit report periodically. This report will list all the current loan accounts in your name. If you notice a micro-loan that you have not taken, report it immediately. Early detection can save you from the impact of missed payments in your credit score.
How to Report Fraud?
In case you do find an unexpected loan account in your name, the first step is to contact the lender. You should inform it that you have not applied for the said loan. In most cases, the lender will ask you to give your personal details so that they can verify your identity on their records. Go to the police station to file an FIR for your protection as well.
In case the lender doesn't take the right action on the matter or does not give a satisfactory solution, the next step is to report this unauthorised loan to the credit bureau. You can raise a dispute, and the bureau will get clarity on the matter from the lender. This step is crucial as it not only protects you from facing financial loss but also from damage to your credit score.
What are the Precautions?
Here are a few tips to avoid any fake loans in your name.
* Don't share your personal details without being sure of the authenticity of the loan app or website
* Don't open any links that may seem suspicious or unsolicited
* Use masked versions of your Aadhaar and PAN card for safety
* Use a secure network when using net banking
* Monitor your bank account
* Ignore unsolicited loan offers
* Verify lender details and loan terms before accepting offers
* Check your credit report periodically
Even if you are cautious, you may still be lured by an unexpected scam. One way to protect yourself is by using the OneScore App, which allows you to check your credit score and report unlimited times for free from both CIBIL and Experian. On seeing all your loan and credit card accounts, you can identify any micro-loans taken in your name and report it directly via the app to the credit bureaus.
Further, the app gives you a tailor-made solution to increase your credit score. In addition, you can also get an instant personal loan of up to Rs5 lakh right on the same app. Simply check your credit score, and once your score reaches 730, you become eligible for a loan offer. With simple eligibility criteria, interest rates starting at 12.50% p.a. and flexible tenure of up to 48 months, you can easily avail and repay the loan. Download the OneScore app now and start working towards good credit health while protecting yourself from authorised loans.
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