Amid the COVID-19 pandemic, many are feeling the burden of financial strain and are seeking refuge through financial aid and loans. Loan scams are also on the rise and cybercriminals often use fake loan offers to persuade unassuming consumers to share their personal data.
In the interest of safeguarding financial welfare and safety, it is important for consumers to be vigilant and protect themselves. Cybercriminals use varying tactics including; text messages, social media, phone calls and phony websites to contact their victims. Scammers often pose as loan officers, use authentic-looking documents and ask for financial information from victims. Once received, they empty the victim’s bank account and the loans never come through.
Fortunately, there are a few simple ways consumers can become alert and educated on the various methods cybercriminals use to leverage loan scams and steal thousands of dollars from innocent victims – here are a few tips:
- Set Realistic Expectations: If an offer sounds too good to be true, it probably is. If a loan deal is so attractive it seems like free money, there’s likely a catch – and you could pay a hefty price for taking the bait.
- Don’t Provide Upfront Payment: If a loan offer involves payment upfront, it is likely a scam. Walk away immediately, especially if it’s for “insurance,” “processing” or “paperwork.”
- Deploy Two-Step Verification: If you receive a request to fill out your personal information so they can ‘process your application as soon as possible,’- Stop, call the lender and verify the request. Take time to check the company out independently and always call to confirm they are who they say they are.
- Be Cautious with Links: Never click on a link embedded in an offer — it could lead you somewhere else on the web where you could download malware or accidentally send personal information.
- Update Passwords: Change logins and passwords frequently. Also, if you use the same login credentials for all online accounts, change them.
As consumers continue to navigate the uncharted waters of this worldwide pandemic, it is a good idea to be on the lookout for the above red flags. If you’re ever uncertain about the authenticity of a loan, be sure to take the extra time and necessary steps to verify.