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Ways To Identify a Loan Scam And The Best Steps To Take If Involved In a Scam

Ways To Identify a Loan Scam And The Best Steps To Take If Involved In a Scam Blog
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Money is in short supply, so understandably, people keep exploring various ways to access funds. However, scammers have taken to capitalizing on this and duping unsuspecting Malaysians. There’s been a significant rise in cases like this since the pandemic. If you want to keep yourself safe, here are some quick ways to identify scammers you should know.

1. They Request An Upfront Fee For Loan Application

In Malaysia, it’s against the law for a lender to ask you for an upfront fee before you can access a loan. This rule always applies, regardless of your Credit Score. So, you always watch out for red flags on platforms or individuals requesting an upfront fee (no matter how small) for “processing” your loan.

2. They Request The Details Of Your Credit Or Debit Card

Suppose any loan provider asks for your credit or debit card information; walk away as fast as possible. They’ll probably say that they want to use this information to verify your data and will credit your account as soon as they’ve confirmed it’s you. However, this is usually a ploy to withdraw your money or empty your bank account.

3. You Suddenly Get a Personal Loan You Didn’t Apply for

Some people suddenly get a call that they’ve qualified for a personal loan with super-low interest rates that they didn’t even apply for in the first place. In other instances, they may even tell you that you’ll be getting a loan amount higher than what you initially put in for. In either case, this is a clear warning sign that you aren’t dealing with legitimate lenders, so break off communication as soon as possible.

4. You Get Unbelievable Loan Deals

Is a loan provider you’re talking to now promising a guaranteed approval rate? Or are they saying the loan comes with 0 interest rate? If the answer to all the questions is yes, then you’re probably dealing with a scammer. Don’t forget that, ultimately, loans are business enterprises. So, if a lender is promising you loan schemes they aren’t benefiting from in one way or the other, then something’s wrong.

What Do I Do If Involved In a Scam?

If the worst has happened, don’t panic. Just follow these steps:

Contact The Police

Fraud or scamming is a criminal offense, so file a police report to let the authorities know you’ve been a victim. Be sure to include every detail in the message, so the police have a higher chance of catching the culprit.

See a Financial Advisor

If you lost a significant amount of money in the process, be sure to see a financial advisor so they can walk you through the recovery process.

Let People Know

It is the best way to ensure people don’t go through what you’ve just experienced. It can even lead to catching scammers, too, so don’t be shy to tell your story, even if it’s only on social media!

Conclusion

To be safe than sorry, deal with only tested and trusted loan providers. It goes a long way to ensure your financial safety.

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