CYBER FRAUD LOAN SCAM

Cyber Fraud: Loan Scam

A loan scam is a type of cyber fraud in which criminals trick people by offering fake or illegal loans through phone calls, SMS, WhatsApp messages, emails, or social media advertisements. The fraudsters promise instant loans with low interest rates and without documentation to attract victims.

Once the victim shows interest, the scammers ask for personal details such as Aadhar card, PAN card, bank details, OTPs, or request an “advance fee” in the name of file charges, insurance, or processing fees. After receiving money or information, the scammers either disappear or misuse the victim’s data for further fraud.

In many cases, victims are also forced to install fake loan apps that access contacts, photos, and messages, leading to blackmail, harassment, and extortion.

Common Signs of Loan Scam:

Guaranteed loan without verification

Demands for advance processing fees

Requests for OTP, PIN, or CVV

Fake websites and mobile applications

Pressure to act immediately

No official office address or website

Effects of Loan Fraud:

Financial loss

Identity theft

Blackmail and harassment

Mental stress

Credit history damage

How to Stay Safe:

Apply loans only through registered banks or NBFCs

Never pay advance fees for loan approval

Do not share OTP, PIN, or personal details

Avoid downloading unknown loan apps

Verify company registration before applying

Report fraud to cybercrime authorities