The possibility of electronic submission of credit and loan applications opens the door for fraudsters. Despite the security system, every year many people fall victim to the crime of incurring obligations on their data. According to the latest statistics maintained by the Restricted Documents System, only in the fourth quarter of 2019, there were attempts to extort 1,607 loans for a total amount of USD 58.4 million! How to protect yourself from this?
Can anyone take an online loan for your data?
Fraudsters are resorting to increasingly brash methods, so extorting a loan in a parabank is not a problem for them. Loan companies are trying to prevent fraud by introducing special security systems and various methods of identity verification.
This means that even if someone has intercepted your ID, in addition to submitting the loan application, you must also make a transfer or log in to electronic banking to confirm the data. Unfortunately, many banks now allow you to quickly set up an account online, which can be used by fraudsters to extort a loan on a parabank.
How can you check if someone has taken a payday loan on me?
Often, the victim of the crime is not aware that someone has extorted credit for her data. He finds out only when repayment reminders start coming or debt collection is initiated. To react in time, it is worth checking regularly if someone has not taken out a loan for your data.
The easiest method is to set up an account in Credit Checker and download a free financial report. In this way, you will find out if there are any loans you are paying back that you did not take out. It is also worth to turn on the Credit Checker Alert, thanks to which notifications about taking a loan will be sent via e-mail and sms.
What to do when someone takes a loan for you?
Sometimes even taking precautionary measures may not protect you against fraud. If this happens, you should immediately report credit fraud to the police or prosecutor’s office. It is also worth reserving your ID card, reporting any loss of document to any bank, if this happened. The next step is to write to the loan company so that it will be notified of the scam.
How to prevent fraud?
Simplified credit procedures are a good incentive for fraudsters, so it’s worth knowing how to protect yourself. The biggest threat is a loan for lost evidence because without an identity document, you will not be able to obtain funding.
So you have to watch the proof very much, and when it is lost, immediately report it to the bank. Currently, almost all bank branches are part of the Restricted Documents System, thanks to which information about a lost document is immediately sent to other institutions.