With the advent of the digital age, there is little that can’t be done digitally. And especially the last few years have seen a significant rise in digital payment systems. From local shops to global brands, everyone has adopted this convenient and fast mode of payment.
But most importantly, this digitalisation has made applying for a loan much easier. Now, you apply for loans from the comfort of your home with minimum documentation. But while this has been a significant development, it has also opened doors to fraudulent activity like online personal loan scams.
And as personal loan fraud complaints are rising, there are ways to avoid falling victim to these crimes. Here, we’ll share some tips to help you stay safe and avoid the growing list of fake loan apps. Let’s begin!
List of tips to help you stay safe while taking a digital personal loan
- Be careful of phishing calls, SMS or emails
Financial institutions will never ask you to share personal financial information over the phone or via SMS or email. So, if you receive any request for the same, flag them as fraud and alert the authorities. Further, you can download identity verification apps that help you avoid unnecessary calls and keep you secure.
- Keep your computer and mobile security updated
We store a lot of important information on our devices. And so, timely security updates are a must. You can also install antivirus software to help you safeguard against hackers and unsafe downloads.
If your mobile, laptop or computer is not adequately secure, ill-intentioned people can always access your sensitive personal information and take advantage.
- Ensure the app or website is secure
As everything happens online, including financial transactions, you need to ensure the portals are safe. Apps and websites should be checked before you upload or share personal information. The list of fake loan apps keeps growing daily and so to safeguard yourself, ensure the website or app is trustworthy.
Further, avoid indulging in sensitive work when connected to a public Wi-Fi, as your data can be at risk.
- Strengthen your passwords
Your account passwords must be difficult to guess and crack. Your password should be at least eight characters long. Always include uppercase, lowercase, capitals, numbers, symbols or special characters to strengthen them further.
Additionally, have different passwords across all accounts. This way, if you need to make a personal loan fraud complaint for one account, the rest still remain safe.
- Alert your financial institution in case your details are compromised
If you lose your debit/credit card or mobile phone where you store your private financial information, make sure to alert your financial institution immediately. This way, they will take additional measures to confirm any changes that might be made to the account, and your funds remain safe.
How to always stay alert
Keeping the above tips in mind while applying for a loan will hold you in good stead. But as we move to an increasingly tech-savvy world, here are some practices you can incorporate into your daily life to safeguard against online personal loan scams and other fraudulent activities.
- Update your passwords from time to time
Though many financial institutions keep reminding their account holders to update their passwords and PINS to stay safe, you should also keep track of them.
And ensure new passwords are sufficiently different from the older ones for added security. It might happen that before you even have a chance to make a personal loan fraud complaint, you have suffered a significant loss.
To avoid this, keep updating your passwords and PINs periodically.
- Practice confidentiality
Make sure never to share your personal information with anyone. Financial institutions and legitimate authorities will always follow strict procedures to ensure safety. So, anyone requesting personal information must be thoroughly vetted before any personal data is shared.
- Report suspicious transactions
With financial institutions offering services like net banking and apps, you can monitor your financial activity. If you notice anything suspicious in your account, alert your financial institution immediately.
And in case it’s your loan account, make a personal loan fraud complaint at the earliest to keep your money and personal information safe.
- Track your credit report
While checking your bank statements from time to time is a healthy practice, studying your credit reports is essential as well. These help you realise if your financial details have leaked and are being exploited.
By exercising a strict check on your credit reports, you can also help the authorities update the list of fake loan apps.
- Stay informed
The best way to stay safe and avoid making personal loan fraud complaints is by staying informed. Newspapers and news channels report cases of fraud often. Read about them in detail to understand how they happened and what could have been done to avoid them.
Stay vigilant and updated with new fraud and criminal activity so that your data and funds remain safe.
To sum up
The list of fake loan apps keeps growing each day. But by following these techniques and staying alert, you can effectively avoid online personal loan scams.
But as necessary as it is to stay vigilant, it is also as essential to choose the right financial institution. We at Tata Capital offer personal loans at attractive interest rates and with fast approvals. What’s more, you can count on our customer service if you need assistance.
To learn more, visit our website and apply for a loan today!
11 January 2023
5 mins read
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