How to detect payday fraud

Payday has become the most popular way for people to borrow loans from lenders. It is accessible through the internet which makes it and the people using it vulnerable to scammers, fraudsters and identity thieves. The last thing we need is losing money over the internet when we did not even have any to begin with. Imagine taking a loan and paying it back only to realise you paid the money to the wrong person.

The following are common payday scams you should watch out for

Watch out for lenders asking for up-front fees first before they provide service.  Some people create fake online pay day accounts and pose as payday lenders.  Unsuspecting people register to these types of accounts. These fake lenders guarantee to give you big loans with minimal interest only if you pay registration and interest fees. They ask you to send money though non-reversible payment methods such as wireless transfers and gift cards. After they receive the money, you not hear from them again. Legal payday lenders do not charge any form of fee before giving loans. If you come across such website you should steer clear.

Block and report those payday loan sites with long detailed forms that ask for too much information. Some sites ask you to fill out long detailed forms concerning you personal, social and financial and work life in order to register with their company. In the real sense, these are scammers trying to collect all your information. They use this information to steal from you or steal your identity. Once the scammer has you bank account information they either try to withdraw all your money, or enrol you to a paying membership programme.  Avoid filling online forms without questioning the legitimacy of the company

A common payday scam is the debt collector call. You may receive a call from an individual claiming to work for the company where you have a loan.  Somehow, this person has all your information and they threaten to call the police on you for not paying the loan. For fear of being arrested you pay the loans directly and later on find out you have been scammed.  Double check the information on the website and report any suspicious numbers calling you about your loan. Check with your payday lenders before dispersing any form of payments

Scammers have unsecured websites that lack a physical address. Don’t just visit any payday website to ask for loans, check if the websites have security certificates. All you have to do is check for the https in their address.  Genuine lenders make sure their websites and the information of their potential customers are safe when using their websites.  Check if the website has any contacts or physical addresses.  Scammers always withdraw their information from the websites because they don’t want to be tracked. Call the contact provided or visit the physical address before creating an account, filling in your details or borrowing from them.

When you go on a payday site, the first thing you check out should be the license.  Genuine businesses require registration and follow through with government regulations. Unregistered payday lenders are either trying to scam you out of your money or trying to avoid government regulations.

Categories: Pay Day Loans