How is Your Personal and Loan Data Being Misused by Scammers?

Due to uncertain financial conditions that most of us go through in the present world, it has become challenging for anyone to be prepared for an unexpected financial emergency. No matter how hard you try, it is virtually impossible to avert a financial crisis, and there could be nothing worse than having to face a liquidity crunch when you are not prepared for it.

In order to avoid such unpleasant happenings, you must invest in various savings schemes, so that when the time comes, you can resort to them in order to handle your difficulties. But, one aspect that must be considered is that if any financial emergency arrives and you use up your entire savings to manage it, you are left unprotected for any other crisis that may be on its way. So, rather than using up your entire savings and be exposed to multiple risks, you must look for alternate sources of finance. One of the best options that you can access in such a situation is availing a Personal Loan.

What is a Personal Loan?

A Personal Loan is a form of an unsecured loan extended by a large number of lending institutions in India to help their customers handle various financial requirements effectively. As these low-interest Personal Loans are unsecured, there is no need for you to furnish any security and you are free to use loan amount as per your preference. In India, lenders offer Personal Loans of up to Rs. 50 Lakhs with the repayment period ranging up to 60 months. The rate of interest against Personal Loans starts from approximately 10.99% and varies according to the lenders.

With the rapid technological progress made in the financial sector, you can now Apply for Low-Interest Rate Personal Loans Online. The online Personal Loan application process is straightforward that requires only necessary information and minimal documents. In most cases, if the applicant fulfills the eligibility criterion, the application is sanctioned, and the loan amount is disbursed within 72 hours.

Safety and Security of Your Online Data

As mentioned above, rapid integration of technology in the financial services sector, most of the lenders are now completing the loan processing part through their websites itself. This means that your critical information such as identity information, bank details, repayment history, phone numbers, and so on are stored on the servers. Most financial institutions use high-security servers and encrypted data packets to transfer information that offers superior round the clock protection for your data. But if the financial institutions have upgraded their online security, similarly the online scamsters have also updated their modus operandi.

How is Your Online Information Stolen?

With their sophisticated technology, hackers and scamsters are sometimes able to break in to secure servers and steal your crucial financial information. As a result, they have access to all your essential data that can be grossly misused to cause you significant financial loss. But there are very remote chances to this happening, as these financial institutions have the economic might and resources to opt for state of the art upgraded security systems.

However, where you might find yourself more vulnerable is your carelessness. Most of the times, you yourself might end up giving out all your personal and loan related data, without even realising. Scamsters use various smishing, spoofing, phishing techniques to dupe you into giving out your sensitive financial data. It might include a purported phone call or email or SMS from the alleged financial institution or your relationship manager introducing themselves as members of a reputed financial institution. Never share your bank details unless you are confident about doing so.

Once these scamsters manage to get hold of your financial information, they can misuse it grossly to cause you significant economic losses by abusing your Credit Card, transferring money from your account, purchase goods online or might even sell it to more sinister users on the darknet.

Precautions to be Taken

If your information is stolen by these scamsters, then it would be tough to stop them from misusing it. You must, therefore, exercise extreme caution and take proper care of your personal and loan information to stop its misuse. Here are some essential steps that you can choose to safeguard your sensitive financial information:  

  1. Never reveal your bank details, passwords, Credit Card details, bank details, ATM Pin, CVV code, OTP and other confidential data to anyone claiming to be from your bank whether on phone or email or SMS. Your bank already has all your financial information and does not need it from you.
  2. Always make it a point to memorise your passwords and the tear apart any pages where you might have written it down.
  3. Do not give your Credit Card or debit card to anyone. Always insists ongoing with them and see the transaction done in front of your eyes to avoid usage of skimming devices.
  4. Avoid discussing your bank details or financial information in public places. Always make sure that you discuss such information in a private location only.
  5. Never fill out any loan applications form from random agents, online as well as offline. Always make it a point to make use of secure marketplaces or the financial institution’s website to apply for a loan.

In this technology-driven age, it is imperative for you to handle your financial information carefully to prevent its misuse that may cause significant monetary losses for you.

Also Read:  Here’s Why Banks are Offering Personal Loans at Competitive Interest Rates

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