While browsing through your usual online shops, you see a massive sale. However, you don’t have the money to buy the items you want right now. Suddenly, you see an ad offering a super-fast and already approved loan with zero interest. What convenient timing!
Don’t click that offer just yet. It’s likely a fake loan scam specifically targeted at online shoppers like you. If you fall for it, instead of getting a loan, you might end up with less money than you started with.
How Fake Loan Scammers Operate
Scammers have a lot of methods to lure victims into their schemes. For a scammer, targeting more people increases their chance of success, but methods may vary depending on the goal they want to achieve.
One of the most common tactics for scammers is creating a scam website. Fraudsters develop fake websites that impersonate real lenders, with online ads running on the internet designed to make their websites appear trustworthy. This common trap is meant to passively attract unsuspecting individuals.
Next are more proactive approaches. Scammers might send phishing emails to targets containing deceptive loan offers. These emails, calls, texts, and messages exploit various psychological weaknesses: fear, sympathy, false trust, and more. They’ll use every angle to make you click on an infected message or file and get what they want.
In more serious cases with bigger damage in mind, scammers might track your online activity to create a detailed phishing email tailored to you. This can be overcome only with cybersecurity tools like VPNs that hide your internet activity and mask your location.
Fake Loan Red Flags to Watch for
Now that you know the tactics fake loan scammers use, let’s dive deeper into practicing how to spot red flags. After all, even if you know what you want to avoid, some of them can be really hard to spot if you’re not vigilant.
How do you spot a fake loan website? First, you have to carefully look at its design, as fake ones are often poorly crafted. If the design seems professional, check for other signs of legitimacy, such as clear contact information, security features (like HTTPS), and a physical address. If these are absent or don’t seem correct, that’s a red flag.
Speaking of inconsistencies, when it comes to checking for phishing emails, apply the same method. See if the sender is familiar or if there’s a small spelling difference compared to the legitimate loan provider. Regardless, even before you check the tiny details, an unrealistic loan offer with an upfront payment requirement itself usually screams “scam”.
How to Protect Yourself from Loan Scams
Let’s say you’re already good at spotting fake loan scams, their ads, websites, and emails. What are other things you can do to protect yourself more?
If you really need to take out a loan, make sure to verify a lender’s legitimacy through official regulatory boards. And of course, never share too much information online, especially on your public-facing social media accounts.
Besides that, it’s always recommended to turn on a VPN before you go to the internet. This way, you’ll ensure no one can intercept your online browsing or track your activities, adding an extra layer of security when visiting websites or making transactions.
Additionally, using a password manager will help you maintain strong, unique passwords for your financial accounts. Where available, consider enabling passkeys instead of traditional passwords, as they’re much harder for scammers to steal or replicate. Enabling two-factor authentication (2FA) will also give you an extra layer of protection against unauthorized access.
What should you do if you ever get scammed?
If you fall victim to a loan scam, don’t panic, but do act fast. Contact your bank immediately to report fraudulent transactions and freeze affected accounts. On top of that, report the scam to the FTC and your state’s attorney general to help protect others.
Many people overlook this, but once they fall for such scams, their stolen personal information is likely to be sold to other scammers. To prevent this, consider using a data removal service to scrub your details from data broker sites. Many people discuss their experiences with these services on platforms like Reddit, and searching for “Incogni review Reddit” can provide you with insights into which services effectively remove your data from broker sites.
No Loan Scam Will Trick You
Vigilance and skepticism are the best traits to have when it comes to protecting yourself from any type of scam, including fake loan scams. But incorporating a few cybersecurity tools along the way, like VPNs and password managers, will further strengthen your defenses, making it much harder for scammers to exploit your personal information or compromise your online security.
