Loan Scam

Currently, for various reasons, a large segment of the population is facing serious financial difficulties, leading people to work more, subject themselves to improper conditions, restrict their consumption, sacrifice both basic and non-basic needs, and consequently become vulnerable financially and emotionally, making them easy targets with a high success rate for criminals who take advantage of this situation. They seduce these individuals with speeches, false testimonies, and perspectives that only worsen their situation.

This has a lot to do with a nation's socio-economic situation but also includes a lack of maturity in knowledge about Data Privacy, Information Security, and Data Protection.

This maturity should and could be acquired as part of basic school subjects, along with personal finance, but this is a utopia in most nations, and we still encounter this type of crime with devastating consequences, leading people and families to ruin.

Those who have been approached but have some education can identify elements suggesting, with high probability, the intent of a scammer.

Meanwhile, those who have fallen victim, when interviewed, demonstrate a high degree of ignorance in this regard, coupled with extreme emotional vulnerability, making them easily manipulated.

How does it work?

In general, recycling old manipulation techniques, this scam can be summarized in the following dynamics:

1. The target, due to financial restrictions, may have their data leaked and collected, or they actively seek unofficial and unregulated credit solutions, resulting in the need, offer, and provision of the victim's data to the scammer
2. The scammer, in contact (either actively or passively) with the victim, offers facilities that make credit obtainment seem tailored to the victim's needs. This involves analyzing and cross-referencing the victim's data, suggesting seemingly appropriate solutions, providing testimonies from supposed clients, and, crucially, pushing for urgent closure of the deal, not allowing time for reflection, analysis, and clarity about the situation, its risks, and the flaws in the scam's construction
3. The victim, in full emotional vulnerability, fails to reason properly and accepts unusual conditions, such as depositing funds into individual or shell company accounts without signing a contract, among other actions that would be unacceptable in normal circumstances, leading to the scam's execution - obtaining victims' data and funds without fulfilling prior agreements
4. After the scam (typically involving repeated deposits into suspicious accounts and obscure procedures), the victim loses contact with the scammer, who stops responding and moves on to new targets (if not simultaneously applying the same scam to several people), resulting in financial losses and emotional turmoil for those deceived
5. Victims, often acting out of desperation, begin to reflect on what just happened and realize they were deceived, but due to potential humiliation or resulting personal, family, professional, and reputational problems, they may refrain from taking action, understanding that they were engaging in something not regulated and supposedly not supported by existing laws and regulations
6. Ultimately, the scammer systematically obtains sensitive personal data and funds, the former of which can be used for committing crimes or sold to others who will, putting the victim at further risk

How to defend yourself?

Maintaining correct procedures is the primary guideline. If a solution, channel, or anything else is not regulated, credible, or guaranteed, it's a strong indication of deception. However, practical precautions that can help avoid this can be summarized - but not limited to - the following actions:

1. Do not seek or accept credit solutions from unregulated sources, such as loan sharks, unknown or uncredentialed companies (and even then, crimes may still occur)
2. Never provide your personal data without signing a confidentiality agreement specifying the purpose of information use - and with your explicit consent
3. Under no circumstances make transfers of funds without a signed contract, whether for advances, discounts, or any offered facilities
4. At the slightest suspicion, gather all evidence, abandon the process, and contact the police authorities and financial regulators

How to recover if you have fallen victim?

Reclaiming funds is very difficult since it was voluntary (sadly, but true).

However, it's essential to contain, investigate, and prevent future damages. The actions below - and also not limited to these - are the following:

1. Upon realizing you have been scammed, immediately collect any digital or physical evidence (without risking your physical integrity or that of others)
2. Report the incident to the police authority, providing as much detail and evidence as possible
3. Report the incident to the banking authority, providing as much detail and evidence as possible
4. Report the incident to consumer protection agencies, providing as much detail and evidence as possible
5. If safe, expose the scammer on social media and high-reach media platforms
6. If necessary and possible, hire a lawyer to pursue actions with official authorities

In summary, increase your awareness of those offering solutions, always avoiding manipulation techniques like urgency, coercion, and threats. Seek a second opinion from someone you trust if possible, or research online for references on the modus operandi you are encountering.

Never attempt to confront the criminal directly to resolve the issue, and avoid falling for new scams while seeking help to solve this type of scam - unless it's an equally trustworthy, recommended, and credible lawyer.

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