September 30, 2023

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You should never trust loan sharks – Common scams + how to avoid them

3 min read
Friend to foe – why you should never trust loan sharks. | Crimestoppers

Loan scams are the most common form of scams that people are not aware of. People who are unfamiliar with the financial system and the rules of the nation, whether foreigners or residents, are commonly victims of these scams. This appealing scam has shattered many lives, yet most people are unaware of it.

Reading the reviews would help you!

There are a lot of loan firms that aren’t reputable and might put you in a bad financial situation. That’s why it is important to read the reviews (Reviewsbird US) about the companies so that you know which company is considerable. If you want funds quickly, you might consider asking for a loan from a reputable financial institution like Bullion Shark

Common scams used by loan sharks

Loan sharks are illegal lenders who prey on those who are struggling financially and can’t apply for loans. Although they may appear polite, friendly, and sympathetic at first, borrowing from them is never a wise choice – even when you don’t have other options. Following are the scams used by these loan sharks;

  1. The licensed lender impersonator

The loan shark will contact you by email, SMS, WhatsApp, Facebook, or phone in this scam. As they are familiar with technology, they have a variety of connections and personal details from all across the world. Because of their well-planned mask, they’ll appear legitimate when you chat with them. 

  1. The loan collector scam

Hundreds, if not thousands, of people fall for it. The loan shark would pose as a respectable moneylender. They will, however, tell you that you owe them money this time. They’ll sometimes make up things claiming that a third-party liar has frauded you by impersonating a moneylender. Because they (the loan sharks) are the ‘true’ money lenders, you’ll have to pay them back. 

To make matters worse, if you don’t return them, they’ll blackmail you with terrible penalties.

How to deal with the loan sharks?

  1. Check for the licenses

Whether a loan shark wants to lend you money, double-check to see if they’re licensed. You look up his details, such as his name or ID, on the US Department of Justice. Always keep in mind that loan sharks will set up phony websites to fool you into thinking they’re real. They’ll even be in charge of the Ministry of Law’s fictitious databases. The easiest approach to verify things is to go to the moneylender’s physical location.

  1. Don’t entertain them

Loan sharks specialize in pressuring their victims. They’re skilled tricksters who will try to fool you with mind tricks. The most difficult aspect of this situation is maintaining your composure. However, you must complete the task at hand. When they recognize that you’re becoming stressed, they’ll take advantage of it. Don’t entertain them and don’t fall for the sweet offers.

Never ever fall prey to the kind words they use to trap you. All you have to do is be a little more cautious and assist your local authorities. That concludes our discussion. | Newsphere by AF themes.