Some common loan frauds and how to prevent them:
Here are some common loan frauds and how to prevent them:
1. Watch out for people who promise loans with very low interest rates and ask for documents upfront. Honest lenders deduct processing fees from the loan amount, so never pay fees in advance, especially with unconventional payments like gift cards or cryptocurrency.
2. Scammers can interact with you come up with attractive loan offers via email, text, or phone, and ask for sensitive personal information.
3. Protect yourself from identity theft by monitoring your financial statements and credit reports regularly. You can report unauthorized loans to your bank and credit bureaus immediately to avoid repayment demands for loans you never took out.
4. Be aware of people who offer "guaranteed" loans without credit checks or income verification. Honest lenders conduct comprehensive credit evaluations before extending a loan, so avoid loans that do not require any documents or credit review.
