Are payday loans safe? – How to detect a payday loan scam


Payday loan lenders come across the most fraudsters and scammers in the loan business because of the online application process and most people are usually desperate for money. It can be hard to differentiate between a genuine lender and an online scammer.

Here is how you can detect some of the common payday scams

Up-front fee

Some lenders ask for an upfront fee before they provide you with any services. People posing as payday loan lenders will often create fake websites to steal from unsuspecting people. When you try to register for a payday account and the lender asks for registration fee while promising big loans and minimal interest, you are about to be scammed. If you encounter such accounts, exit the website and block the website as fast as you can. Registering for any payday website is free and there are no promises of lower interest rates.

Too much information

You may come across payday websites that ask for too much information concerning your personal, social and financial life. These are fake websites created by fraudsters who’s aim is to collect all the information form an individual and use it to steal form them. Some of these websites will ask you to fill long detailed forms in order to be registered into their websites. They will use this information to hack your accounts and take out all the money, or subscribe you to paying services without your consent. Some may even sell your information to identity thieves.

Unsecured websites

The fastest way to detect a fake payday account is to check the security of a webpage. Usually, legitimate websites are issued with security certificates. Checking the security is simple, all you have to do is look out for the https in the website link. When you click on that, you will find the security certificate of the site. The security stamp guarantees your information safety when you are using the website. Lenders with no security usually try to steal information from unsuspecting people.

Physical address and contacts

If the payday loan website you are trying to obtain a loan form has no physical address or way to contact the lender, you should think twice about applying for the loan. Scammers may keep their personal information from their website because they are doing something illegal and do not want personal transactions. A genuine payday lender will have their information installed just in case of any troubles with the loan process of queries from their customers.

Debt collector calls

When you have too much information online, scammer are bound to come across some of it. If you are not careful, scammers will hack your account and use it to steal from you. You may receive a cal from an individual who is pretending to work for your loan lender, demanding for an instant repayment of your debt. Normally, they demand for the money and threaten to report you. Unsuspecting people will wire the money instantly and realise the truth later.

Final word

These tips will help you keep your information and money safe when you are looking to apply for a payday loan online. They will ensure you take a payday loan from a reputable lender.