Online loan application fraud is an increasingly common form of identity theft. With the proliferation of online banking and loan applications, criminals have found new ways to take advantage of unsuspecting individuals. To protect yourself from loan application fraud, it is important to be aware of the signs of fraud so you can avoid them.
How to Avoid Loan Application Fraud in 5 Ways
Here are the five important things you should do before applying for a loan to avoid being scammed and protect your financial information.
Check the background of the lending company you’re going to apply to.
Before deciding to go through your loan application, the first thing you should do is background check the loan company. You must research the company’s full details from when they started, where you can find their office and what are the previews of their previous clients about the services they provide. It is also important to read the company’s website privacy policies. By doing so, you will be able to discern if the company is a legitimate one.
Make sure that you will only access through official apps and secure portals.
You have to verify that the website and applications you are going to use are secured. Fake websites look like the same ones you are browsing with financial institutions so it is a must that you’ll be very cautious in using them especially if it is your first time. Don’t use links shared as text messages or email IDs. You may fall victim to smishing or phishing. A notorious email sent to trick users is known as phishing, but smishing is plain text. So, when looking for loans online, visit only official or authorized portals of lending institutions or banks.
Fraudsters copy and paste form details from a genuine site, which can look very similar to the original. Once you’ve submitted your online application, fraudsters often send out confirmation emails. However, if you spot any small spelling mistakes, this is likely to be a tip-off that it’s not genuine.
Use strong passwords and PINs.
If there is something that online applications and websites always remind you, that is to use strong passwords and PINs for all of your accounts. You have to make sure that your password consists of at least 8 characters with uppercase and lowercase letters, numbers, and other special characters. You should avoid using passwords related to your personal information such as birthdays or phone numbers. It is also recommended to use a two-factor authenticator to enhance security measures. You should also make sure not to share your passwords and PINs with anyone. Doing this can help you secure your financial accounts as you process your online loan application.
You should not use public Wi-Fi and shared computers when typing sensitive information.
Online banking in public places or shared computers can make you a victim of online fraud. Using public Wi-Fi, such as in shopping malls or restaurants, can put sensitive information at risk as fraudsters can intercept and steal your card information. Card details contain his PIN and personal information, so if leaked, you will easily lose money.
Likewise, Scammers can easily exfiltrate your email ID and other financial information if the shared computer’s “autocomplete” feature is enabled. So, even if you’re using a shared computer, be sure to clear your browsing history, temporary files, and cache after use. Remember to log out after applying for credit and do not leave your device unlocked.
You should register your e-mail ID or phone number with your bank.
Registering your e-mail ID or phone number with your bank will help you secure and identify fraudulent transactions in your bank. You will get the latest information about financial transactions promptly. You can also track the status of your loan application in time. It is important to regularly check your credit report for any potential fraudulent activity. Moreover, you will be able to review your loan applications thoroughly including verifying the authenticity of any documents submitted.
Vidalia Online Loan Application
By doing these ways to avoid loan application fraud, you can take steps to protect yourself from becoming a victim. Make sure to check your credit report regularly, be aware of any suspicious communication from a lender, and thoroughly review all loan applications. By taking these steps, you can help ensure that your identity and financial information remain safe.
Vidalia Lending Corp. is Securities and Exchange Commission (SEC) registered and complies with National Privacy Commission (NPC). The loan company complies with the government statutes regarding the protection of information of their borrowers. We offer different types of loans tailored to your needs. If you need a secured online loan application, apply here.
