Is your loan offer too good to be true? Here’s how to stay safe from scams | Mint

Two con artists were arrested in Gurgaon for scamming a private firm employee through a fraudulent loan offer. The victim saw a loan advertisement on a poster in Udyog Vihar, leading him to contact the scammers.

They convinced him that he was eligible for a ₹30,000 loan, but after deducting fees, he would receive ₹28,000. The scammers took the victim’s personal and banking details, but only gave him ₹20,000, later forging a larger loan in his name, reported TOI.

By February 25, the victim realized the fraud when multiple banks contacted him about a loan of over ₹1.3 lakh, far exceeding the original ₹30,000. Despite asking for the remaining funds, the scammers withheld a part of the amount. Police arrested the duo on February 16, recovering ₹2,700 and two phones from them.

How to protect yourself from loan scams?

The occurrence of such scams signifies that financial fraud becomes more widespread day by day. These steps will protect you from ending up a victim of this type of fraudulent scheme:

1) Verify the lender’s credentials

Before entering business with any lender check their official website and review both customer testimonials and online assessments.

2) Beware of unsolicited offers

Fraudsters use cold calls as well as social media posts and posters to trick potential victims. The public should stay clear of uncommon offers which seem too superb because these agreements normally require quick approval with zero evidence or credit evaluation.

3) Avoid upfront fees

You should be cautious if a loan provider asks for payment before authorizing your loan. Before loan distributions all fees and charges must receive clear explanation from lenders.

4) Protect personal information

Resist sharing your private financial details such as bank account number as well as PAN card and Aadhaar number with anonymous individuals. The information becomes available to scammers who either look for loans or carry out unauthorized activities.

5) Report suspicious activities

Report any suspected fraudulent loan deals and questionable activities to the police and cyber cell immediately. The RBI Ombudsman and consumer protection entities allow you to submit complaints through established procedures.

6) Refer to reliable sources

Contact your bank or financial advisor and speak with reputable individuals to ensure the reliability of any lender before getting a loan.

In conclusion, the growing incidence of financial fraud demands strong attention to verify all loan-oriented claims. People risk financial exploitation through scammers who target those who need loans so customers must follow protective measures to prevent falling into such scams.