Fake Loan Scams: How They Work, How to Spot Them & Stay Safe
Loan scams are generally multifaceted and can be catastrophic to the people who become victims of these unscrupulous schemes. This article will clarify the how-to’s of these scams and listing several of the red flags which should be avoided.
How Come Fake Loan Scams are Hard to Figure Out
Fake loan scams are types of fraud that can be too sophisticated which maybe the reason why, in some cases; the victim may even receive money in their account making the deal look genuine. One common trick of these scammers is that they also pretend to be bank employees in a bid to lure the victims.
In some situations, attackers may use impersonation to pretend to be legitimate lenders so that they may extract money from vulnerable victims. Another common ploy involves asking the consumer to pay in advance some money , usually tagged as “insurance” or some other fee in relation to the loan.
This document proceeds in emphasizing the growing of concern on fake loan scams, how they function and how one can be a step ahead so as not to be scammed.
How Exactly do Fake Loan Scams Work?
Fake loan scams explicitly are staged when the perpetrators contact the victims and inform them that they have borrowed a loan from a bank that now needs to be repaid.
In one of the cases we studied, the scammers borrowed money in the name of the victim with the intention of placing the funds in the victim’s bank account. The fake lenders asserted that they were the victim’s bank and requested the victim to return the funds borrowed — this being in respect of the funds which the victim would still be required to pay back anyway.
In another case, the victims of the scam were made to believe that money had already been credited to their accounts as a deposit. But it was later unveiled that the funds which had been credited were actually taken from other accounts that the victims had at another bank which the crooks had hackers access to. They had movement to this other account which they drained the money and deposited it into the victim’s main account. The victim who could not notice the fraud round-submitted what they thought were exposed loan proceeds to the account of the zaschutel.
It is possible that the reason why these rounds moving of money occurs is because the scammers are not in position of the appropriate financing tools that would allow them to make payments directly to their accounts.
What Are the Warning Signs?
So-called fake loan schemes usually include fiendish criminals posing as bank staff and calling or texting victims stating that some suspicious transactions were made on their account. In order to bolster their scheme, impostors may also use some real bank security procedures to provide their targets with a false sense of security.
They may even persuade them to confirm the customer care number found on the reverse side of the bank card or the one posted on the bank’s official site, though in most cases such numbers are contended. Furthermore, they may recommend that the victims come into a physical branch of the bank to verify their identity which only adds to this sense
In a similar way, for example, victims are often told by the fraudster that in connection with the abovementioned complaint, money must be transferred to a so-called “safe” bank account to be out of reach by potential fraudsters. If you ever receive a call from a person claiming to be your bank representative, and in the process of the conversation he tries to pressure you into any money transfers, it is all a scam.
These con artists can be very ruthless and sometimes keep victims on the line for hours threatening that if action is not taken then all their money will be lost.
How to Spot Phony Loan Fraud
Scams are so advanced these days that it is easy to fall for them. –Kuang-Xin Youth Policy Agency. Republic of China. Taking extra measures and steps when talking to someone unknown is always the best option.
The victims may have had their data stolen from them via fake email or text messages that exhibited phishing behavior. In case you get anonymous calls and the person on the other end is trying to investigate unusual charges, it is wise to end the communication. Most would tend to think that it is too extreme and even rude to do so but it is safer than being sorry.
Once you have done that, give it a break for at least 10 minutes before contacting your bank using the official contact number. This is mainly because there are cases of aggressors even remaining on the line after a call has been placed. At this stage, your bank will be able to ascertain whether there is any fraudulent transaction or if it is just a false alarm.
Nevertheless, you may also dial an anti-fraud helpline (say 159) that leads straight to the fraud department of your bank, provided that your bank offers such a service. It is part of an experiment which aims to overcome the crime.
Only when absolutely necessary, do not send messages via email as they can be intercepted. Consider configuring banking app sensors that can notify you of unusual transaction attempts in real time and take action if that is the case.
What to Do When Feeling That You Have Been Scammed
If ever you suspect that you have been duped, report it to your bank immediately. The sooner you are in contact with the bank, the higher the chances the bank will be able to stop the fraudster’s activities by freezing their account and also get back your money.
Moreover, the fraud must also be reported to Action Fraud. Your bank will assess the situation and see if there are still any assets that can be subject to reclamation. In most cases, the simple cases are resolved almost two weeks after they are reported while the complex cases can even take a month and a week.
Notify your bank of any events that can affect your judgment such as death in the family and emotional or physical sickness. This is necessary because it may affect the way your bank treats your claim.
If you are not happy with the response from your bank, you are able to escalate your issue to the Financial Ombudsman Service.
