Since the digital world is complex and full of many fraudsters, you have to be very careful while sharing your information online or downloading any app. In order to attract customers, many fraudsters develop apps that look very reliable. Aimed at luring potential victims and looting their assets, the apps offer loans, rewards, etc. at low interest rates. We all are familiar with many customers who are trapped by fake loan apps and are helpless in such cases, without knowing what to do.

One should know what fake loan apps are, how to identify them and how to protect oneself from such fraudulent activities. Also, you need to know how to respond to such threats. Read more on this:

What are fake loans?

Fake loan apps are mobile apps that offer instant loans. These apps claim that loans will be disbursed faster by asking for documents along with identity proof. However, these apps engage in unethical practices such as stealing personal information, charging large amounts of hidden fees, or defrauding users by demanding advance payments.

How to identify a fake app?

To identify whether loan apps are fake or not, keep these things in mind:

Do research:Check reviews, ratings, and the total number of downloads. Authentic apps often have a large user base and positive feedback. Read the reviews and ratings carefully before installing the app.

Check reliability:Check information including the lender's website, contact information, and company history. Authentic lenders may have displayed clear information about themselves, but fake apps can hide many things.

Read the terms and conditions carefully:Read the app's terms and conditions, interest rates, repayment information, and hidden costs. Usually, such fake apps are not registered with the RBI. So, before taking a loan, check the official website of RBI to see if the loan app is registered.

Give Permissions Carefully :Fake apps may request access to personal information beyond what is required by the loan application. Do not allow the app to access your phone's details. Or double-check the details if allowed, and allow it only if necessary.

Documentation: Real loan apps only require basic documents. Be wary of applications that authorise loans without verification or request excessive personal documentation.

How can you stay safe from fake loan app scams?

Before downloading any fake loan app, follow these tips and prevent frauds:

• Use reliable sources

Install apps only from trusted sources such as the Apple App Store or Google Play Store. Avoid loans from third parties or dubious websites. Because they can lead you to a fake application.

• Monitor transactions

Check your account statements and transactions on a regular basis for unauthorised deductions or unusual activities. If you find any illegal transactions, immediately inform your bank.

• Report App

If you come across a suspicious or fake loan application, file a complaint with the appropriate authorities such as the Reserve Bank of India (RBI) or consumer protection organisations.

• Identify stressors

Fake loan apps may entice users to provide personal information or may pressure them to accept loans. If you feel compelled or uncomfortable, don't go ahead.

Fake loan apps are a huge risk for anyone looking for financial help in India. Apps, sometimes mistaken for legitimate lenders, take advantage of the need for emergency loans by stealing personal and financial information from unsuspecting users.