The UK’s fraud report centre, Action Fraud has issued a report that how this year people have been scammed by frauds claiming themselves as loan collectors. These scammers trick people into believing that they own a loan to a certain company and threaten them with lawsuits if the payments are not made.
Following are five scams that can be aimed at extracting unnecessary money from you:
1- Financial Fraud
Financial fraud usually involves scams with checks. This involves two types of frauds:
- Banking Scams
A cheque scam artist sends you a check with all the routing number and watermarks. Feeling ecstatic for receiving a check out of nowhere, the person deposits the check in his/her bank. However, as soon as the check is deposited, they unknowingly give authorisation for the fraud to take out loans or purchase unnecessary items.
Another way is phishing, where a person receives an email to verify their account number and then they hack your accounts
- Investment Scams
These scams involve advance fee, which a person promises if you take out a payday loan. They ask for a fee upfront and then say that they will give you a loan without any interest.
2- Telephone Scam
Thousands of people fall to telephone scams every year. Typically, the telephone scam works in the following way:
- A person calls you and tells you that you have borrowed a loan from an institution and they are the debt collector calling on their behalf.
- They then try to finagle out your house or account information such as bank account number.
- They often entice people by saying they can have a further loan if they agree to pay the previous one after some time.
- If all the above fails, they threaten you with lawsuits or possibly jail time, which leaves a person terrified.
3- Ponzi Schemes
Though a Ponzi scheme is mostly associated with fraud investments, scammers have now found a new way to incorporate it in payday loan frauds. Usually a person calls and tells you that if you bring a specific number of customers to them, you will be able to get a no-interest and no-repayment payday loan.
4- Identity Theft
This occurs when a person steals your national insurance number or other information. Normally this scam is always too late to catch because the person often finds it out when they get additional tax. The FCA receives information that you are paid from another company, which is how this theft is caught.
5- Online Scams
There are people who open fake websites and lure people online with the promise of low interest rate payday loans. When you submit your information online, this is how they get your personal detail and email account ID. They then send fake e-mails claiming you have been qualified for their first payday low interest loan scheme.
The only way to protect yourself from these scams is to never give out your information on telephone, messages or e-mail. If a person calls you with such schemes, call the bank they named immediately and make them aware so that you do not fall under any lawsuit.…