An instant loan app is a convenient way to get funds for any personal need, such as the cost of medical expenses, travel, education, etc. Similarly, you can also apply for a credit card on some of the best personal loan apps that offer other credit solutions. While these apps offer speed and convenience, there is also a high risk of fraud if you are not careful.
For example, scammers may impersonate legitimate banks and financial institutions to entrap you with a fake loan app. With such tactics, they aim to collect your personal information and then use it to either extract money or takeloans or credit cards in your name. This is why it is essential to stay vigilant. OneScore helps you do just that. Read on to know how and the types of scams you should be aware of.
Types of Scams in India
This is the most common type of scam where scammers pretend to represent a reputed lender or credit card company. They usually communicate in a professional manner, either through email, phone call or text message, asking you to complete the loan process by enticing you with a pre-approved offer.
If a fraudster tries to steal your credit card details through electronic devices or a fake payment portal, it is called skimming. Using the stolen information, they may make unauthorised transactions or create a duplicate card.
In this type of scam, fraudsters bypass the security of the lender or credit card company to steal the personal information of users. They may use this information to open a loan in your name or apply for credit cards and leave you liable for payment.
Here, fraudsters may access your ID and address-proof documents via various means, such as making you download a fake loan app. They may then use these documents to get loans or credit cards and damage your credit score.
In this scam, you may be given a loan offer that is fictitious for the purpose of collecting either a small fee as the processing charge or to get hold of your documents to commit further financial fraud and cause losses.
How to Detect Them
- Read the Loan’s Terms: Make sure all the details are transparent and available on the website as well as the app
- Check App Security: Ensure the instant loan app is secure and does not pose any risk to your personal details or share your information with third parties
- Reliability of Lenders: Check the reviews of customers online to know if the lender is genuine and trustworthy
- Vague Communication: If the representatives don't mention your name or account details, be vigilant
- Lack of Transparency: If the fees and charges are not mentioned on the platform, there is a risk of hefty upfront fees
- Guaranteed Approval Claim: Lenders and credit card companies always check credit scores and other details before giving approval; there is no guarantee you will get the card or loan, marking such claims as fake
- Quick Approval Trap:Scammers may present you with an offer that requires you to sign and accept it in the next 30 minutes, so you don't get enough time to run a check on the validity of the lender
- Verify the Address: Make sure the lender or credit card company has an official address mentioned on the website
- Don't Click on Any Link: Avoid clicking on any suspicious URL, especially sent through SMS or WhatsApp
- Safe Use of the Internet: Always use secure WiFi and avoid public networks
- Masked Documents: Use masked versions of documents when submitting them to the lenders
- Official Channels: Stay vigilant if the lender reaches out through unofficial channels, such as WhatsApp text, Telegram messages, etc.
How to Safeguard Against Scams and Frauds
How Does OneScore Help?
Now that it's clear how these scams can entrap you, the next step is to find a trusted option for secure borrowing. One of the best personal loan apps is OneScore, and here's why:
You get a personal loan offer as per your credit score. It's only after you run a free credit check that you can receive your loan offer. Checking your credit score on the OneScore app is considered a soft enquiry, and wouldn’t affect your score in any way.
You can generate unlimited credit reports anytime without any membership fee. This is a helpful method to keep an eye on your ongoing loans and credit cards to make sure there are no fraudulent accounts.
If you do find such accounts, you don't have to panic, as the OneScore app gives you the option to report it. Simply select the loan account and report it to either CIBIL or Experian (the most commonly referred credit bureaus in India), as you get access to both reports on this app.
When applying on the OneScore instant loan app, you don't need to submit any additional documents. This makes your borrowing experience quicker and more convenient.
With all these practices, OneScore ensures that you can borrow without putting your financial health and identity at risk. If you want to get a loan from a reliable lender, then you can choose the OnePL facility on the OneScore App.
Get up to Rs 5 lakh starting interest rate of 12.5% p.a. for up to 5 years. Enjoy a 100% digital application, instant approval and the best offer based on your credit score. Download OneScore today to monitor your credit accounts, spot fraud and get easy access to funds.