2023-08-25 18:35:12
As the search for loans or credit through digital platforms becomes more and more common, concerns about the security of these online transactions are also increasing. Scams and fraudulent loans online have become a major threat to users looking for quick and affordable financial solutions.
With more than 330 complaints reported last year, according to the Superintendence of Industry and Commerce (SIC), it is crucial that consumers be alert and know how to identify fraudulent platforms and applications, so as not to put their money in the hands of scammers who either abuse the interest or simply disappear with the money and leave the credit obligations.
With more than 330 complaints reported last year, according to the Superintendence of Industry and Commerce (SIC), it is crucial that consumers are alert and know how to identify fraudulent platforms and applications. | Photo: Getty Images
This financial industry expert warns that this lack of identity validation and credit study is an alarm signal.
Legitimate financial institutions carry out extensive analysis before granting a loan to ensure that the borrower can meet their payment obligations. Scam platforms, on the other hand, tend to focus on speed and ease of access, which can be tempting for those who need money fast.
The lack of identity validation and credit study is an alarm signal. | Photo: Getty Images/iStockphoto
“Another tactic commonly used by online scammers is to put pressure on applicants to take out a loan. Taking advantage of the urgent needs of users, these fraudulent lenders are constantly calling and persuading users to complete the application as quickly as possible,” Saldarriaga said.
This eagerness to secure the loan can lead people not to question or investigate the terms of the loan, increasing the risk of falling into a financial trap.
This eagerness to secure the loan can lead people not to question or investigate the terms of the loan, increasing the risk of falling into a financial trap. | Photo: Getty Images/iStockphoto
The lack of clarity in the terms and conditions is another characteristic feature of fraudulent platforms. These illegal lenders often do not provide transparent information about actual loan costs, interest rates, and additional fees. Also, users tend not to read the terms and conditions carefully, resulting in a lack of understanding of the obligations and risks associated with the loan. Scammers can take advantage of this lack of knowledge to introduce hidden clauses that harm the borrower.
“A common red flag for online loan scams is the request for advance payments. Fraudulent lenders often ask applicants to pay for administrative fees, credit checks, or insurance before receiving the loan. This goes against standard financial industry practices, where costs and fees are transparently detailed in the application process. Transferring money without receiving the loan is a clear sign that something is not right and it could be a scam”, added the founder of Juancho Te Presta.
To guard against these risks, finance experts advise online loan seekers to thoroughly research the platform before committing. Verifying that the lender is regulated and authorized by supervisory entities such as the Superintendency of Industry and Commerce (SIC) or the Superintendency of Finance (SIF) is essential. In addition, it is advisable to check if the lender is a member of recognized associations, such as Colombia Fintech, as this can provide a higher level of trust in the platform.
To guard against these risks, finance experts advise online loan seekers to thoroughly research the platform before committing. | Photo: Getty Images
“In the case of fintech, people can check that the lender is part of Colombia Fintech or a recognized union, since having the support of an association gives greater endorsement to this type of platform. It is also recommended to review the comments and ratings of the page or application with which you are going to apply for a loan”, concluded Juan Esteban Saldarriaga.
#key #tips #avoid #fraudulent #loans #online