Applying for Online Loans

 Online Loans

Everyone needs extra cash from time to time. There are even times when things feel desperate. Applying for online loans might seem like a good idea – a quick fix – but they are often a source of trouble. Loans are offered by everyone from legitimate banks to credit cards to cash advance services. Due diligence and giving out the right information may save you from theft, fraud, or worse.

Red Flags

Red flags can be obvious, but may not be recognized by uneducated consumers. Before applying for a loan, check out the company thoroughly to make sure it’s legitimate. The Better Business Bureau is a good place to start. Research reviews from former and current customers. Check scam websites.

Seven Signs:

  1. The lender doesn’t request credit history. The first thing a reliable lender should ask for is your credit history. Real lenders want to know they are making a calculated risk. Before applying, you should have your credit history in front of you. Credit history is issued through three major credit bureaus: Experian, Equifax, and TransUnion. If you aren’t required to give your credit history, it’s a scam. They are interested in collecting high fees from late payments.
  2. The lender isn’t registered. The Federal Trade Commission (FTC) requires registration for all lenders and loan brokers in the state(s) they conduct business. Verify the lender is legally permitted to process your loan.
  3. The lender requires a prepaid debit card. Some sites will require a prepaid card as collateral or insurance. Prepaid cards are untraceable and nonrefundable, so the scammers keep the money free and clear.
  4. The lender approaches you. Legitimate lenders advertise, but you should be suspicious of one that calls or shows up at your door. If you receive such a call do a free phone trace on iPhone to verify the number of the caller.
  5. Their website isn’t secure. If your antivirus or firewall software doesn’t catch it, you can tell a website is secure if it features a padlock symbol next to the URL. Also, a secure site will have an address with https://www… Instead of the typical http://www.
  6. The lender has no address. All banks and loan brokers have a physical address. Use Google Maps to pinpoint their location.
  7. The lender wants immediate action. Don’t give in to limited time offers, even if the lender promises to send the money the next day.

Reporting a Fraud

If you suspect you have been the victim of a fraud or identity theft due to an online loan offer, contact the Federal Bureau of Investigation Internet Crime Complaint Center.

 

How to Handle Phone Scams

iPhone number tracer app

 

Phone scams are prevalent especially since scammers can manufacture phone numbers. Many scammers call from outside the country, making their real numbers suspect. By using Voice over Internet Protocol, scammers can link a new number to a phone, computer, or other electronic device to trick their victims into believing their outrageous claims.

The best way to avoid phone scams is to use a iPhone number tracer app. If the caller has a legitimate reason for calling, he will leave a voicemail. This also applies to telemarketers who circumnavigate the federal Do Not Call list.

Types of Scams

The list of phone scams is seemingly endless with more being invented every day. Fraudsters call regarding anything that might get a response from their victims from Medicare offers to IRS scares to utility company demands for payment. If you are suspicious of a phone call you have received, check it out online before making any financial commitments. Callers demanding payment for taxes, utility bills or mortgage payments are often fraudulent. Call the company directly to make sure the request is valid. Also, be aware that the IRS never calls anyone on the phone; they always send letters in the mail.

Examples:

“Can You Hear Me?” The caller asks you questions to get you to say “yes.” The answer can be altered and used to show agreement to the scam. If you must answer in a positive way, find another word to agree. Following are just a few popular scams:

  • Car Accident. The scammer informs the target that a family member has been in an accident.
  • Kidnapped Relative. The caller demands money for the safe return of a kidnapped family member. The scam is also known as the “Grandparent Scam.”
  • Unpaid Utility Bill. Someone posing as a utility company worker threatens to cut off the utility unless paid immediately.
  • Free offer/lottery winnings. Caller tells the victim that he has won a prize or a free vacation.
  • Government Employee Impersonator. Someone calls claiming to be an employee from the IRS, Social Security office or other agency.
  • Credit Card Services. Caller states he is from your credit card company inquiring about suspicious charges, lower rates or another service. Asks for your social security number or other vital information.
  • Medical Coverage and Benefits. This scam targets seniors more than any other group. Caller scares target into thinking his medical coverage is insufficient.
  • Lower Your Interest Rates. The scammer details how you can save on credit card or loan interest rates.
  • Tech Support. The caller says he is from tech support. He reports a serious computer issue on your system. The “technician” offers to fix the issue for a fee.

Reporting Scammers

Reporting fraudulent calls may seem futile, but it does help to curb the activity. Law enforcement should be notified regarding calls designed to defraud or harm the victim. Take the following steps to report suspicious activity.

Identify the Type of Call You Received

Telemarketer: A telemarketer is anyone that attempts to sell a product or service. To stop the calls, sign up on the Federal Do Not Call Registry. It may not stop the calls, but it will help. Block all unwanted numbers.

Debt Collector: Someone calling to collect a debt should be able to provide you with account information, amount due, contact number, and address. Tell the caller you will return the call at your convenience. If the call is legitimate, contact the collection agency via snail mail, requesting that they stop calling you. Legally, they must obey.

Scammer: Telemarketers must obey the national Do Not Call Registry. This should prevent telemarketers from calling and if you do continue to receive these types of calls you should report them. You only need to sign up one time per phone number.

Report the Call to the Authorities

Once you have determined that the call you received is a scam, report it to the proper authorities. Local law enforcement can warn other citizens since scammers often target specific areas.

  • All Internet-based scams, including romance and tech support scams, should be reported immediately to the Internet Crime Complaint Center, an agency operated by the FBI.
  • Calls from the IRS should be reported to the Treasury Inspector General for Tax Administration (TIGTA).
  • Consumer-related phone fraud should be reported to the Federal Trade Commission’s Complaint Assistant. Consumer-related scams include free vacation or prize scams, lottery and sweepstakes scams, energy bill scams, loan and credit card scams, tech support scams, fraudulent debt collectors, medical alert scams, fake charities, and telemarketers in violation of the Do Not Call list.
  • Contact the Federal Communications Commission to report telemarketers and fake debt collectors using ID spoofing.

Block the Number

Aside from not answering calls from unknown numbers, you can block a phone number with the press of a button. Scammers use many phone numbers but placing a block will reduce the number of calls you receive.