Demand drives supply in any market, and the financial services sector is no exception. As the industry expands and there is a growing influx of players, there is also an unwelcome corollary that has been cropping up with increasing frequency. This is the alarming trend of people being defrauded by deceitful entities posing as legitimate financial companies. This is especially true when it comes to loan fraud in India, as has become evident from the increasing reportage surrounding people losing money, property, and in extreme cases, even their lives to such fraudulent loan scams and their aftermath.
These instances, although extremely common, could be preventable with the right amount of scrutiny and awareness. Let’s explore what a loan scam constitutes and how you can avoid falling victim to such unscrupulous practices.
Kinds of Scam You Must Know About
Data Phishing
With the rapidly growing number of internet and smartphone users in India, the number of scams and fraudulent activities targeting them has also grown steadily. Financial frauds particularly target vulnerable individuals like the elderly or financially illiterate, but none of us are immune to their destructive impact. Typically, data phishing is carried out by fraudsters in the guise of financial services providers ranging from well-known banks to companies peddling attractive new offers.
In the case of loan-app scams related to phishing, the most common way that people are…
