This Macropay Scam Alert is created to help readers spot loan and credit scams. An online financial loan scam happens when a person or business financially deprives another person or business of their money. The scammer achieves this by misrepresenting who they are and what they do. The successful fintech startup Macropay shares some tips on how to spot and avoid financial loan and credit scams.
Common Types of online financial scams
1. Data phishing
If you have a smartphone or internet access, you are probably familiar with this scam. It is one of the most common forms of online financial fraud. Data phishing typically targets victims by pretending to be a financial service provider. The scammers offer their targets attractive new offers or services.
The scammer then asks for sensitive information like your bank card number, PIN (Personal Identification Number), or OTP (One Time Password). Unfortunately, sharing any of this information allows the scammers to gain access to your financial accounts. As a result, your accounts can be emptied in a matter of minutes or even seconds.
Phishing scammers can also build website similar to the official websites of financial institutions or popular service providers. The websites are then linked to official looking emails requesting users to update their details. Users will then unknowingly enter their details, granting the scammers access to their accounts.
2. Predatory Loan Apps
With the rise of digital lending loans are now easily accessible. With less stringent requirements to open an account or gain credit approval, loan apps cater to many individuals without access to traditional banking. Predatory loan apps promise borrowing loans requiring little to no documentation or collateral. While some lending apps are legal, transparent and follow best industry practices, others are not. Predatory loan apps dupe victims by providing inaccurate interest rates, loan duration and employ intimidation and even harassment for repayments.
How to spot a financial loan or credit scam
Be vigilant
Your bank or any legitimate institution will not ask you to divulge any sensitive or personal information online or over a call or email. If someone calls you claiming to be from the bank, it’s better to go to the bank in person or call the bank on its official number to be safe.
Also, avoid clicking on email links unless you are very certain the sender is who they claim to be. When accessing financial websites or any website you are likely to enter your financial details, always verify that the URL is correct. Also check that the website is secure. Secure website has a little lock icon before the URL or use HTTPS instead of just HTTP.
Be patient
Most scammers will try illicit a sense of fear and urgency in you. Sometimes the fear of missing out on a great opportunity drives us to make unwise decisions. However, when we act in haste, we also tend to later regret our decisions. Verify everything first and then act. Remember to never pay an advance fee to avail any offer. Also, if a deal is too good to be true it probably isn’t true.
Do your homework
Research any lender and check their reviews. Lookout for red flags like a loan approval process that’s too easy or instant. If a lender does not do their due diligence, background check or KYC (Know Your Client) they are likely to be predatory.
What to do if you’ve been scammed
If you believe you have fallen victim to a scam, Macropay recommends immediately contacting your bank and cancelling your bank cards, PIN and update any compromised information. In some cases, your bank will be able to reverse any fraudulent transactions. It depends on the transaction details and your bank policy.
Find out if there is a police cyber-crime unit in your country. If there is, you can report the scammer and help protect others. Finally, prevention is always better than cure. Be vigilant, be aware, be patient and do your homework.
Macropay Scam Alert Series
Macropay is a FinTech situated in Europe. They aim to help people through information dissemination regarding scams and fraudulent activities within the tech space.
For more crucial insights, keep following the Macropay Scam Alert series: www.macropay.net
