How to identify fake loan applications and how to report them


How to identify fake loan applications and how to report them

By Jane Muia / Posted on May 23, 2022 | 3:02 p.m.

KEY POINTS

Today, there are many mobile loan apps, most of them offering to give quick loans but end up defrauding the customers. These apps present themselves as genuine, but the fact is that they are just scammers and all they want is your money.

KEY POINTS TO REMEMBER

Do not give out personal data such as PIN, bank details, usernames or passwords to protect yourself from such scams. You should also avoid installing apps from the internet if you are unsure of the source.

Today, there are many mobile loan apps, most of them offering to give quick loans but end up defrauding the customers. These apps present themselves as genuine, but the fact is that they are just scammers and all they want is your money. Anyone who’s ever been scammed will tell you it doesn’t do any good.

These apps have specific characteristics that will help you determine that they are fake. Some of these features include;

  1. They ask for a service registration fee
  2. They never worry about how the borrower will repay the loan. They never care about credit scores or collateral while claiming to provide loans.
  3. Before granting the loan, they will tell you to pay a loan fee and tell you that the money will be refunded once the loan is processed. Legitimate lenders usually deduct borrowing costs from the loan.
  4. Having fake or non-existent phone numbers, websites and addresses.
  5. They have no physical addresses or registered contacts.
  6. Not having helplines or customer support mechanisms
  7. Too many in-app ads.

Do not give out personal data such as PIN, bank details, usernames or passwords to protect yourself from such scams. You should also avoid installing apps from the internet if you are unsure of the source.

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You can report these apps on Google Playstore by flagging them as inappropriate, and Google will act accordingly. Follow the next steps to report apps on Google Playstore.

  1. Open the Google Playstore app on your mobile phone.
  2. Find the intended fake application and click on it
  3. Go to the top right menu and click on “Report as inappropriate”.
  4. Select the reason and submit.

You can also report these fake loan apps to the Digital Lenders Association of Kenya (DLAK). However, DLAK will only act on member applications. Follow the steps below to get started.

  1. Go to the DLAK website
  2. Select Customer Complaint from the menu
  3. Fill in the required details
  4. Describe your complaint
  5. Select the targeted lender
  6. Click on “Report”

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