The internet has made it easier for more people to access financial services such as bank accounts and loans. Unfortunately, it has also made it easier for scam artists to target unsuspecting borrowers.
In this article, CashLoanPH will discuss 8 common fast loan in 15 minutes scams in the Philippines and how to avoid them. We’ll also look at how to spot scams and protect yourself from becoming a victim. By understanding the common tactics used by scammers, you can be better prepared to protect yourself and your money.
Types of Fast Loan Scams in the Philippines
Fast loan scams are a form of fraud where a person or institution solicits payments or deposits under the false pretense of offering a loan. In the Philippines, this process often involves the use of fake loan websites, unsolicited phone calls, text messages, and fliers. These types of scams are often targeted towards vulnerable individuals, such as students, retirees, and low-income earners.
First, there are fake loan websites, which are websites posing as legitimate financing companies that offer fast loans in exchange for an upfront fee. Upon payment of the fee, the website will disappear without providing the desired loan.
Second, there are phone calls that claim to be from a legitimate loan company in the Philippines. These calls are often made by cold-callers and offer quick, easy, and often discounted-rate loans. Often, these callers will ask for confidential information or a payment in advance in order to secure the loan.
Third, there are text messages with similar offers of fast loans. Often, these messages will come with a link that, if clicked, will steal your personal information.
Finally, there are fliers that appear in public places such as cafes, malls, and parks. These types of scams will offer low-interest and fast loans and lure unsuspecting individuals in with promises of fast cash.
All of these different types of fast loan scams in the Philippines should be avoided as they present a high risk of fraud. If you are considering taking out a loan, it is important to only use trusted sources that you have researched and verified independently.
Common Financial Techniques Used by Scammers in the Philippines
Common financial techniques used by scammers in the Philippines include:
- Money Transfer Scams: Scammers will pose as a legitimate business or individual and ask a victim to transfer money to their account. They may use pressure tactics such as threatening to oust the victim from their job or cut off services.
- Investment Scams: Scammers will promise victims high returns on investments with low risk. However, the scams are often deceptive and come with hidden fees or shady conditions that make the investments impossible to cash out.
- Payment Fraud: Fraudulent payment processing is a common method for scammers in the Philippines. They will use phishing emails and text messages to obtain credit card and account information.
- Loan Scams: Scammers will solicit victims for loans with low interest rates, promises of quick cash, and guaranteed loan approvals without any credit checks. However, these loans are often never paid back and come with damaging terms.
- Phishing and Malware Scams: Scammers will send emails or text messages that look legitimate but are actually filled with malicious content. The messages may contain a virus or malware that is designed to steal sensitive information or take over the victim’s computer.
Characteristics of a Legitimate Loan Service in the Philippines
A legitimate loan service in the Philippines must meet certain criteria in order to provide quality services and protection to borrowers. These criteria include:
- Authorization from the Central Bank of the Philippines (BSP) – All legitimate loan services must be approved and authorized by the Bangko Sentral ng Pilipinas (BSP). This ensures that customers are protected under the laws and regulations enforced by the central bank.
- Transparency and Disclosure – A legitimate loan service must be transparent and disclose all fees, charges, terms, and conditions prior to the loan application. This ensures that borrowers are aware of the exact amount they will be obligated to pay.
- Responsible Lending Practices – All legitimate loan services should follow responsible lending practices, such as not lending to individuals who are unable to repay the loan. This protects borrowers from taking on too much debt, thus preventing financial hardship.
- Financial Literacy Programs – Legitimate loan services should provide financial literacy programs or other forms of education to borrowers in order to promote responsible loan repayment and responsible money management.
- Complaints Handling – All legitimate loan services must have an efficient and reliable system for handling customer complaints. This ensures that any issues or concerns can be addressed and resolved in a timely manner.
8 Common Fast Loan in 15 Minutes Scams in the Philippines
- Emergency Cash Loan Scam: Fraudsters may offer a “cash loan” that requires an upfront fee, but once you pay the fee, you never get the loan.
- Fake Credit Card Offers: Offers of “pre-approved” credit cards with a 15-minute approval can be deceiving as they generally come with hidden fees and high interest rates.
- Deceptive Broker Agreements: Many loan broker agreements come with hidden fees and other clauses that leave borrowers in a worse-off position than when they started.
- Low-Interest Schemes: Offers of low-interest rates on loans may come with hidden fees and other charges that make the loan more expensive than originally thought.
- Advance Payment Scams: Offers of loans that require upfront payments before getting approved may be a scam.
- Gambling Loans: Offers of gambling loans can be fraudulent as these lenders often have ties to criminal organizations.
- Fake Loan Companies: Fake loan companies may offer loans but will only transfer the loan funds to a third party rather than directly to the borrower.
- Exclusive Loan Deals: Exclusive offers of loans with low-interest rates can be scams as lenders have no way to verify if the borrower is eligible or not.
Tips to Avoid Loan Scams in the Philippines
- Verify the Credentials: Before making any decision to take out a loan or invest in any loan product make sure to check the credentials of the lender. It is important to do research and verify the lender’s registration with the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP).
- Identify the Lender’s Reputation: Do research online to look out for any complaints or negative reviews about the lender or the loan product being offered. Also, check if the lender has a valid business address and contact number.
- Read the Terms and Conditions carefully: When applying for a loan, it is important to thoroughly read the terms and conditions of the loan. Ensure you understand the fees, interest rates, and other charges applicable if you default on the loan.
- Check for Fraudulent Offers: Be wary of too good to be true offers. It is important to be on the lookout for lenders offering loans with below-average interest rates, instant approvals, zero documents, etc.
- Stay Vigilant: It is important to remain vigilant and not give into any pressure tactics. Never share confidential information like your Social Security number or bank details with any lender.
- Report Unsolicited Offers: Never reply to unsolicited emails or phone calls. Seek legal advice if you are unsure about any of the offers or if it seems too suspicious. You may report to the SEC and the BSP any suspicious emails or offers from lenders.
Fast loan scams in the Philippines are becoming increasingly common. Fortunately, there are steps you can take to protect yourself. Start by researching any loan company you are considering thoroughly. Make sure to read all of the loan documents carefully and never provide any personal information or financial details until you are confident that the company is legitimate.
Additionally, be sure to watch out for any suspicious activities or requests for money upfront. By following these simple steps, you can help protect yourself from being a victim of a fast loan scam.