Loan Fraud: 5 Tips to Recognize Online Counterfeit

Nowadays you can arrange almost everything online. You can shop, make an appointment with the doctor and even request a loan. Both in the physical and in the virtual world, scammers are constantly finding new ways to rob you of your money. That is why we share 5 tips to identify loan fraud.

How can you identify loan fraud?

money loan

The fraud usually starts with an email where you are approached by a stranger. This person offers a fast and cheap loan. He or she usually has two tactics for that:

  • The person pretends to be a well-known or less well-known financial institution; or
  • The person offers a loan between individuals.

These emails are often written in poor Dutch. The emails are not always filtered by your spam folder. The interest rates are low and a flexible duration makes the total package even more attractive. With this, desperate people who are not eligible for a traditional loan are lured into the trap. Look in particular at the following alarms to recognize the fraud:

1. You do not have to prove your income

No bank gives loans without first reviewing your credit history and financial situation. A bank naturally wants to know if you can repay your loan. A bank with no interest in your finances has no genuine intention to grant you money.

2. The website of the provider is not secure

Financial institutions do everything to win the trust of customers. Their websites will therefore use ISO web standards, there are safety certificates, messages from partners, sponsors and more. Don’t forget to view the url. Secure web addresses must start with “https” and not “http”. If you cannot find these aspects on the website of a provider, then you better leave. It is almost certainly fraud!

3. The provider has no physical address

If you visit the website of a provider, also look for a physical address. If no address can be found or if there seems to be something wrong with the address, then you have to be careful. View the address on Google Maps or call the institution. If you cannot find an address and no one answers, then you better give up. Providers must have a seat to operate in Belgium.

4. The provider does not meet the legal requirements to be recognized as a lender

Many fake websites offer affordable loans, but the real purpose of the websites is to register your personal information and sell it to the highest bidder. To be sure that the institution is legal, it is best to check whether the institution is registered with the FSMA.

You have to pay money.

You have started the borrowing process and you will then receive a registration account for you. Then you get costs for administration, mail, etc. while you have not seen a cent. This is a fraud tactic by criminals to fill their pockets with small amounts. Loans must by law be completely free, excluding the interest you pay. So don’t fall for it, no matter how small the amount seems!

Protect your bank details against digital fraud

What can and cannot a financial bank ask of you?

– Your income
– Your expenses
– Your other lenders
– Your family situation
– How many children you have
– Whether you own or rent a house
– Your address
– Your breed
– Your ethnicity
– Your sexual orientation
– Your political, religious or
philosophical views
– Whether you are a member of
trade union

Also read: Loan of documents: What do you need?

With the comparison tool of you can enter the amount and duration of the desired loan. You will then see the most advantageous loans. This service is completely free and you are not committed to anything. All financial institutions on are accredited and reliable lenders, making you safe from loan fraud. So don’t hesitate to make a safe comparison!

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