Personal credit frauds are becoming more and more common within recent years. Unfortunately, almost every single day, according to the news reports, the police solve several crimes related to bank fraud organizations. That is despite credible bank institutions worry about the safety of their clients and use a reliable system for personal data protection and multileveled verification of the provided information, cybercriminals try to draw up new plans and ideas how to get other people’s funds such as stealing someone else’s credit card, passport or tax identification number. But when a bank has any doubts about provided information, it leads to immediate refuse of lending.
In the article below, there is a list of the most common personal credit frauds and how not to get caught on their hook.
The Most Popular Loan Fraud Schemes
People who are not familiar with a financial sphere, simply do not understand how scammers can get loans for another person. Therefore, in an attempt to prevent crime with your data, it is extremely important to learn more about the most well-known personal credit fraud schemes that can bring you serious troubles.
- Dishonest employees. Unfortunately, there are dishonest bank employees too. They have an opportunity to get loans in cash using copies of the provided data.
- Third parties. When someone else gets your original document, he has only two ways to get a loan. The first one is to put on make-up to try to look like someone on the photo in the documents, and the second one is to get into cahoots with a bank employee.
- Falsification of documents. Personal credit frauds make false IDs.
- Online microcredit organizations. Fraud uses semi-legal or completely illegal microfinance institutions to get loans with someone else’s documents because such organizations have a poor verification that is not enough.
What to Do Not to Become a Victim?
It is helpful to follow some prevention steps to be sure in your safety and not to become a victim of credit frauds:
- The very first step of prevention is to avoid known credit fraudsters. All the information could be found on the Internet at special websites and forums.
- Keep all your original documents. Do not give them to others and write down on every copy “Not for financial transactions”.
- In any case, do not post copies or our original documents on public websites or social networks.
- Once in a while, check your credit history data to stay completely sure that everything is alright and there are no unknown credits.
Even following all the steps mentioned above is not a 100 guarantee because these are not all of the existed schemes credit fraudsters use. But being warned is the best way to prevent fraud.