Instant loan apps might be tempting, but they could come with various risks. People generally fall for such apps to avoid the hassles of a bank loan where they might need a lot of paperwork
Amid growing online financial frauds, the State Bank of India (SBI) has recently warned its customers in a tweet: "Please refrain from clicking on suspicious links or giving your information to a company posing as a bank or financial company ."
The following are six safety tips shared by SBI which could help you to avoid falling into scams.
1) Check the authenticity of an app before downloading.
2) Do not click on suspicious links.
3) It’s better to avoid using unauthorized apps that might steal your data.
4) Check the app permission settings to secure your data from getting stolen.
5) Report suspicious money lending apps to the local police authorities.
6) Visit http://bank.sbi. For all your financial needs.
In 2021-22, the Reserve Bank of India (RBI) recorded around 9,103 bank fraud cases across India. A report by LocalCircles, a community social media platform, noted that one in two Indian consumers who use instant loan apps face high-interest charges, extortion, and data misuse.
It advised people to report fraud cases to the appropriate law enforcement agencies immediately and never share know-your-customer (KYC) documents with unknown individuals or untrusted apps.
Instant Loan App Scams
The Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) unit has exposed loan frauds totaling Rs 500 crore between April and August 2022. The scam involved several fast loan application modules with linkages to China, according to the police. In the past two months, 22 people working for Chinese nationals have been detained by the police. A government official claimed on Saturday that the accused persons had diverted Rs 500 crore rupees to China via “Hawala” systems or through cryptocurrency investments.
