How to avoid fraudulent loans

Economically we live in desperate times, in which families and small businesses are looking for alternatives to stay afloat, something that unfortunately opens the door for scammers to steal thousands of pesos as a counterpart to a loan that never came. While some frauds are immediately identifiable, others are not, and can wreak havoc on the financial lives of their victims.

Many offers of cash loans operate outside the laws promising quick service, but how do you know which ones are real? Fortunately, there are a few ways to determine if you are falling into a fraud or are contracting a legitimate transaction. The best way to do it in most cases is to follow your instinct. If something sounds too good to be true, it is probably a fraud, so act with caution before giving your personal information.

Attentive to alarm signals


Be careful with emails saying that you have pre-granted a loan that you have never asked for. In many cases, emails that you have not requested can take you to fraudsters and even identity thieves.

Unscrupulous lenders will avoid disclosing your location and contact information, so, if it is not evidently available, distrust what you are offering.

Although credit checks are not always necessary for cash credits, a lender who asks only for your bank account information is not something you should expect, and you may be in danger of being scammed.

If the lender does not have a physical and tangible office and, on the contrary, offers to contact you, you should probably look for another option.

You should never advance money to get a loan. If the lender asks for money before depositing the promised loan, it is better to cancel any transaction.

Check the grammar and spelling they use in the email message. Scammers often have poor spelling because they usually come from other countries.

When they ask you to answer an email other than the one that appears in the header, you may be facing a fraud. In this case, it is better not to answer anything and report the email to the authorities as a phishing attempt.

Do your own research

Even though you may be under pressure and need a loan as soon as possible, it is always better to take your time investigating potential lenders to avoid being a victim. The best way to do this is to look up the name of the lender on the internet along with the word “scam” or “complaint”. Doing this will bring up any problems that other people have had with that company, and will help you make a decision.

In many cases you will not be able to find online information about a certain lender. If this is the case, it may not have established a reputation, so check if through the Chamber of Commerce and the financial regulators of your state can give you a good idea of ​​who you are dealing with. It is always better to work with well established and registered lenders, because they have a reputation to maintain and probably will not rip you off.

Enter a search of the lender’s website on WhoIs to know when it was created and who is the owner. In many cases, scammers use a website for a few weeks and then disappear with the money of their victims, so be wary of any new company and carefully research it before accepting your offer.

A mapping application like Google maps can be a very useful ally when you investigate lenders. Do a search for the company’s address and take a look in street view mode. If it looks like an empty place, someone’s house or something that does not seem legitimate, stay as far away from them as you can.

Final considerations


Something that can not be emphasized enough is that if it seems too good to be true, it is surely a scam, and you can become its victim. Always make sure you are comfortable with the lender’s instructions before giving your bank account and personal information. If you become a victim of a scam, contact the Chamber of Commerce and the police. Make sure you weigh your options carefully and look for alternative solutions before getting involved in a cash credit, especially because they are the most expensive financial products on the market, and you may end up paying much more than you have borrowed.