Loan Frauds: The recent pandemic witnessed a surge in various financial frauds. Loan fraud is one of the most common types of fraud that has emerged during that time, when people needed instant funds to cater to their medical or other needs. Digital and technological advancements have been a boon to the financial services sector, but they also present precarious challenges which may become nearly difficult for a layman to identify, let alone stay safe against such hazards. Misusing the beneficial usage of digital technology, fraudsters can hide their real identities behind the anonymity of the world wide web to impersonate legitimate companies and hack into the accounts of people to carry out financial frauds. The unprecedented COVID-19 pandemic, which caught everyone off guard, acted as a further catalyst. Many people became more vulnerable because of their lack of financial preparedness to deal with the adverse situation. Fraudsters took advantage of this helpless situation to offer scam loans in the garb of easy and instant funds without any documentation.
Potential borrowers must become aware of loan scams and learn how to identify them to save themselves against any financial losses and mental hassles. Fakhari Sarjan, Chief Risk Officer, Bajaj Finance Limited, shares his knowledge to raise awareness and suggests 6 ways to identify loan frauds:-
Ways to Spot Loan Scams
1. Seeking advance refundable money – “The prominent red flag of a loan fraud – if any entity…
