Nowadays, taking out a loan has become convenient as everything has come onto the digital platform. Everything takes hardly a day or two, from applying for a loan to processing it and crediting it in your account.
On one hand, it has offered a highly simple and convenient way to take any type of loan. On the other hand, it has introduced loan frauds across the globe. People are more worried about finding a new loan account in their name that they have never applied for. Scammers use PAN details to get loans on your behalf and let you suffer the consequences. With time, cases of fraud have increased. The biggest reason behind such incidents is using your credit/debit card by an unauthorized person. Loan frauds are common among people, but not many of you know about them.
What is a Loan Fraud?
As the name says all, loan fraud is a scam where criminals use your identity to take loans. Scammers use your line of credit and take funds on your name. Scammers often take loans and escape without paying the debts. This puts a financial attack on you. Moreover, it will degrade your CIBIL score and cause trouble in getting a loan.
Commoners don't pay attention today to day actions, but some of them give you a clear sign of loan fraud. Below are the warning signs that you should take seriously.
The issue occurs when you are a victim of loan fraud and have no idea how to deal with it. If you are stuck in one such situation, here are seven ways to deal with loan fraud taken on your name.
1. Contact the Lender: If you ever come across a company sharing information about your loan approval, it's a red signal for loan fraud even if you haven't applied for the same. You often get such information via email or SMS, which isn't legit at all. The most essential and initial step to deal with loan fraud is reaching the lender.
Call the customer care service and discuss your issue. If it's a fraud case, your request will be prioritized and ensure the loan process halts immediately. Explain to the customer care team that you haven't applied for any loan. They will entirely pause your loan approval process or share the right steps to share your identity theft report and proceed with the next steps.
2. Dispute Your Account: If you find someone opened your account and took a loan on your name, it's a big concern that you must attend immediately. You should immediately dispute the charges with the concerned authority. Visit the service provider's official website and check for the right process of disputing a charge via email or call.
More often, customer care emails and toll-free numbers are provided in the footer that you can use to file your dispute.
The addition of fraud alerts to your credit involves more steps to verify your identity before final loan approval. This is a great option if you want to ensure complete safety from identity theft and fraud loans on your name.
3. Make an Identity Theft Report: If you ever find a new loan account in your name, it's a clear sign of identity theft, and you must report it immediately. You should submit your report to the Cybertheft Wing in your city in case of identity theft. Follow the steps mentioned on the website and file a complaint about identity theft.
4. File FIR: FIR (First Investigation Report) is also necessary if someone impersonated you and took a loan on your behalf. Alongside filing a complaint at the National Cyber Cell, you should also file an FIR about this issue and get the FIR copy for future references. As it is a cybercrime, police won't have much to investigate; still, it's a good practice to file your complaint at the nearest police station.
5. Check Your Credit Report: If you are a victim of loan fraud, you must check your credit report to check all the loan accounts on your name. It will help you determine any other fraud accounts that need immediate action. A detailed credit report will also help you acknowledge the tenure of the fraud loan account and all associated details. A fraud loan harms your CIBIL score, which will cause issues in the future.
6. Check Various Platforms Where You Submitted Your Information: If your personal information is compromised and someone took out your loan, it's obvious you shared your sensitive data at an unauthorized or unsecured platform. You should start searching for that website, link, or email that started the identity theft case. Start cleaning your mail inbox, SMS, browser history, etc. Also, prefer cleaning your card details from various platforms you used recently. Above all, don't forget to check your computer/laptop for any virus or malware.
These are the steps that will help you tackle fraudulent loan cases. Now, how can you stay safe from loan fraud? Below are the ways that you must consider safety against loan frauds.
Monitor Your Credit Report Regularly: Your credit score is easily available online, via different modes. This makes it convenient for you to check and keep regular track of your credit report. Anytime you find an unpredicted decline in your credit score, immediately reach the authority to report the case of loan fraud. Today, third-party websites provide you with regular updates about your credit score.
Always Use Secure Websites: The internet boom has brought everything to the digital platform. Increased competition has also increased the growth of unsecured websites that invite hackers through loopholes and steal your personal details. Hence, you should never use websites to compromise personal & sensitive details.
Use a Secure Internet Connection: Many smartphone users take advantage of free internet and utilize it to the fullest. Unfortunately, they compromise their phone data to the hackers in exchange for free internet. That's why you should never use an unsecured internet connection. Prefer using personal data or internet connection for day-to-day operations.
Always Install Trusted and Verified Apps: Nowadays, unverified mobile apps are the big reason behind the loss of sensitive data and increased loan frauds. People prefer using crack and nulled apps to use premium features. However, they are entirely unaware that their personal data is compromised, leading to loan fraud cases.
Never Reveal Your Confidential Information: Until you make any transaction, there isn't a sense of getting OTP or any verification call. You should be aware of such call frauds that take your personal details and use them to take credit on your name.
Avoid Uploading Your ID on Unauthorised Platforms: Some websites ask you to upload an ID copy and prove your identity. It's crucial to ensure the authenticity of such websites and acknowledge when ID submission is required or not.
So, the best and most practical practice to stay protected with the fraudulent loan cases is to stay alert every time you get any sensitive mail, SMS or using an unauthorised website. You should always handle your personal identity and sensitive data wisely.
Above all, it's most important to keep a regular check on your bank account and credit card. If you find any unusual transaction from your bank account or credit card, immediately inform the lender. In case of a credit card, prefer blocking it immediately before you take further action and request a new card. Moreover, in case of a bank account, call the customer care and freeze all transactions associated with your account till the issue is resolved, and your identity theft case ends.
In the digital world, it's easy to be a victim of fraudulent loans; hence you should always stay alert and use any online service wisely. A small mistake can result in identity theft, leading to fraud loan cases on your name.