Risks of Online Credits: What You Need to Know Before Applying

To avoid the informal loanslike the ‘drop by drop’, many people are opting for the famous online creditsas it is a quick way to request money. However, this facility also implies certain risks that must be considered before making a decision and endangering the family economy. Which are? Juan Carlos Venturo, general manager of Experian Perutells us:

1. FRAUD. False offers can be presented online, so check the reputation and official service channels of the company/financial institution before applying for a loan in this way.

2. HIGH COSTS. Some online loans can have very high interest rates or include hidden fees. Review the terms and conditions of the financial obligation well before acquiring it.

3. LACK OF REGULATION. In our country, the regulation on online loans is not yet well developed, this can generate practices that are not very transparent or abusive on the part of some companies.

4. OVER-INDEBTEDNESS. Being an easy and fast option, they can lead some people to ask for more money than they really need.

5. LOSS OF PRIVACY. These companies ask you for personal and financial information to give you the loan. Be careful because this data can fall into the wrong hands or be used for fraudulent purposes.

Did you know…

According to the Superintendence of Banking, Insurance and AFP (SBS), the number of online loans granted in Peru has increased by more than 100% in the last two years.

How to take care of your finances from virtual scams?

Carlos Cruzado, director of the Software Engineering Career at the Autonomous University of Peru, maintains that virtual scammers take advantage of the lack of knowledge and financial desperation of the population to attract them. Thus, he adds, with a simple click on malicious links they can have all the information that is stored on the cell phone.

“These links or applications try to circumvent the security filters of any device, taking advantage of the ignorance and the need of citizens,” he says.

Therefore, the specialist offers the following tips to keep your money and information safe.

• Keep your devices safe.- Make sure you have reliable antivirus and antimalware software installed on your devices and keep it up to date. Use strong passwords and avoid sharing or reusing them across different websites.
• Verify the authenticity of websites.- Before entering sensitive information or conducting online transactions, make sure the website is secure. Always enter the URL manually instead of clicking on suspicious links.
• Protect your personal data.- Do not share personal or financial information through phone calls, text messages or social media. Legitimate financial institutions will never ask you for confidential information through these means.
• Use secure Wi-Fi networks.- Avoid making financial transactions or accessing sensitive information when connected to public or unsecured Wi-Fi networks.
• Verify statements and financial transactions.– Regularly review your bank statements and account statements to detect any suspicious activity. If you find unauthorized transactions, contact your financial institution.

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