Scams to Avoid When Looking for an Urgent Cash Loan Financial emergencies happen way more often than you would think. Everyone faces some kind of emergency at least once, and sometimes you just don’t have the money available to fix that problem. In these scenarios, you will probably be desperate, and therefore vulnerable. There is nothing a scammers loves more than someone who is desperate. Identify theft and losing a lot of money are only some of the problems scammers can bring upon you. That’s why, this article explains to you how you can avoid scams. If you are thinking of applying for an online loan, or are in need of an urgent cash loan in Singapore, read this article first! Urgent Cash Loan Scams An urgent cash loan, typically known as a short-term loan, is a loan that you receive in cash, and repay it quickly. As previously mentioned, it’s often used when urgent and unexpected situations happen. While taking about scammers, there are two main things that you need to know from the beginning. A legal and legitimate money lender will never do cold calls. You will never get a text message or a WhatsApp message from a real money lender. If you do, do not reply or engage in any way with the sender. Unlicensed money lender, are also known as ‘Ah Longs’ and ‘loan sharks’, says the Singapore Police Force. A loan shark will pressure you into borrowing more money, sign something without reading it, or threaten you in many ways. There are many tactics that scammers use, and we’ll go through some of them today. The cold calls are the first tactic. They will make an unimageable offer, you borrow from them, and that’s when the horror begins. The interest rates, when borrowing from scammers, are through the roof. And, when you cannot pay the exorbitant amount, they will resort to violence. Never borrow from a money lender that is not licensed. The Ministry of Law from Singapore has a list of licensed money lenders that is of great help. Just check that list, and see if the money lender is on there, if not, do not borrow from them. Also, if you suspect that someone is a loan shark, you should report them to the police, the number is 999. Online Loan in Singapore: Upfront Payments In Singapore, you can apply for a loan online. The online loan in Singapore concept is of great help to scammers. They create websites that look as legit as possible, and you can apply as you would with a legitimate lender. Or, you might find them somewhere, anywhere, and discuss with the said lender through messages or e-mails. And while you might say: “Well, how can I figure it out that the person is a scammer?”. Know that there are some red flags when it comes to scammers. They will ask for upfront payments (application fee, processing fee, security deposit, or other imagined fees). After you pay this fee, the scammers disappears. The payments might be requested via cryptocurrency, wire transfer, or gift cards. A legitimate money lender will never ask for this types of fees, or this type of payment methods. As soon as you are asked to pay a fee, before signing anything, or even receiving the loan, you should know that it’s a scam. The money you pay on the fee will be lost, and there is nothing you can do. They might also ask for sensitive information, such as NRIC number, bank account information, credit card number, or SingPass details. They will say that they need these information to verify your eligibility, but that is just part of the scam. With the information they obtain, they basically steal your identity. They will use your information for fraudulent activities, and they will steal all of the money that you have on your card. If you are asked any sensitive information, like those mentioned, do not give them. Politely refuse and block the number. If the scam is in the early phase, they won’t try to contact you again. The further you go, the harder it will be to get rid of them. Fake Websites and Platforms Unfortunately, scammers advanced a lot lately. They can create websites and platforms that look as legit as the one of a bank or a licensed money lender. But, fortunately, they are still scammer, so there are some thing you could look for, and identity the loan shark. Remember that these websites and platforms are used like previously mentioned, they ask for fees, and then you never receive your money. So, if you are in the online loan application process, look out for these elements: Grammatical errors – Scammers will not put a lot of time in writing the content on their website, so you will probably be able to find some grammatical errors. Poor design – While some scammers put time in their websites, most of them don’t. No contact info – No phone number or e-mail available. Lack of physical address – Every licensed money lender in Singapore has a physical office. Promising instant approval – Instant approval means that they don’t have time to do a verification on you, as a legal money lender will do, as that’s a red flag. Impersonating and Cryptocurrency Scams Many scammers will impersonate legitimate money lenders or banks. They will call you, pretending to be a legal money lender, and say that you have a pre-approved loan, that you qualify for a certain loan, and other similar lies. To avoid this scam, just follow the advice that was already mentioned, keep in mind that legal money lenders don’t do cold calls. Also, if you want to be sure, check the website of the lender that call you, and go to their office, or call them using the phone number on their website, and ask them if they called you. Scammers might also ask for cryptocurrency, as a security deposit, but they will never borrow you any money. No licensed money lender will require crypto currency payments or fees. Conclusion If you want to borrowing safely, follow the simple advice that was presented in this article. If you need an urgent cash loan in Singapore, no matter how urgent you need it, you still need to be careful. Scammers have no mercy, so you need to protect yourself from them. Make sure to tell all of this to your loved ones. Elders often fall into the traps of scammers, so teach them the tricks.