Loan scam: 7 tips to avoid falling into this trap

The loan scam has unfortunately become popular online and has already claimed many victims. In the first quarter of 2021, there were more than 1.2 million incidents.

THE loan scam has become very popular in recent months, criminals have already invested more than R$$600 thousand in Google ads and managed to steal more than R$$30 million from victims.

Even though financial institutions are always warning about the risk of these scams, many people still end up falling for them.

Are you at risk too? Don't worry, there's no need to worry! We'll do it this way. Read this text to the end and discover 7 tips to avoid falling into this trap. See our index below:

• How does the loan scam work?
• 1. Find out if the financial institution is trustworthy.
• 2. Research the company online.
• 3. Check whether the company actually operates at the address provided.
• 4. Be wary of very attractive offers.
• 5. Do not accept paying installments into personal accounts.
• 6. Do not provide your information to strangers over the phone.
• 7. Never pay to get a loan.
• Conclusion.

How does the loan scam work?

Loan scams can happen in different ways and have different approaches.

However, the biggest characteristic is that in the end the applicant always has to deposit or transfer some amount before having the requested amount released.

They come up with many excuses to convince the applicant to transfer the money, such as paying for a digital security certificate, the loading fee, IOF (Tax on Financial Transactions), etc.

1. Find out if the financial institution is trustworthy

Some scammers use the names of well-known financial institutions to commit scams, however, you already know that no reputable financial institution requires an advance deposit to release a loan.

You can contact the institution through any means of communication available on the official website and you will see that this is not the case.

Now, there are financial institutions that are not as well known, but offer reliable loans, so how do you know about this?

For a company to act as a bank, finance company or banking correspondent, it needs authorization from the Central Bank of Brazil.

Therefore, if you want to find out if a company is trustworthy, simply check its authorization with Bacen.

Other than that, even if it is regularized, it must follow the rules of the Central Bank, for example, which condemns abusive interest rates.

Do this and you will hardly fall into the loan scam.

2. Research the company online

This rule applies when purchasing any product or service online. Checking the company's reputation and what other customers are saying about it is essential before making any purchase or acquiring a service.

Use the company's social networks to see comments and also search on Complain Here.

3. Check if the company actually operates at the address provided.

Many institutions and banks, despite not having an online branch, have an office address. 

Ask for the address and then check if the company actually operates at the location indicated. This is a valuable tip to avoid falling into the trap. loan scam.

This is because criminals are from different parts of Brazil and operate from anywhere.

4. Be wary of very attractive offers

As the saying goes: "When the alms are too much, the saint gets suspicious." This case is no different.

For example, can you get credit even if you have a negative credit history? Yes. However, the interest rates are high, and it's very rare to find an institution that will approve you.

So, if you find a loan proposal for those with bad credit from an unknown institution, or with excellent conditions, for example, very high amounts and low interest, be suspicious and do your research thoroughly before accepting.

5. Do not accept payment of installments into personal accounts.

No Pix or TED for individual accounts. At a reputable institution, payments are made via boleto or bank deposit.

If you are informed that the installment amounts will be paid into so-and-so's account, stop the service immediately, as you may be a victim of a loan scam.

6. Do not give your information to strangers over the phone

Before providing your personal information via WhatsApp, check that the number is the same as the company's customer service number.

Also, never provide card passwords, account passwords, or verification codes to third parties.

7. Don't pay to get a loan

No reputable and trustworthy financial institution will ask you to deposit any amount before releasing the loan amount.

Even if there is a registration fee or other fee, it should be deducted directly from the loan installments.

Some scammers claim the price is for a digital security certificate, but this is not true.

If you are being served and the person asks you to make a transfer to release the amount, test the account, or something similar, end the service immediately.

There's no need to be scared or give in to threats, they have no basis, even if he shows you a screenshot or document.

Conclusion

In a moment of desperation, it is normal to make hasty decisions without even thinking properly.

However, it is important to be very careful and always remain vigilant, otherwise, you will be in a much worse situation than you already were.

Fall into loan scam It's frustrating, so always follow the news on our blog, as we always help you choose the best financial services on the market.

Recommended reading: Loan for public servants: what it is and how it works.