Detty Finance
3 min readJun 21, 2023

Unraveling the Tactics of Loan Scammers in Nigeria: How to Stay Protected.

Nigeria, like many other countries, has a significant problem with loan scams. These scams can range from individuals posing as legitimate lenders to phony online platforms offering quick and easy loans with no credit checks. If you’re not careful, you could end up losing a lot of money or even falling into debt. Here are some tips on how to avoid loan scams in Nigeria.

  1. Do your research: Before applying for a loan, do some research on the lender or platform you are considering. Check their website and social media pages to see if they have a legitimate business presence. Look for reviews from other customers or borrowers to get an idea of their experiences.

2. Beware of unsolicited offers.

If you receive an unsolicited loan offer via phone call, email, or text message, be cautious. Legitimate lenders will not typically contact you out of the blue with offers of loans. Instead, they will require you to apply through their website or in-person.

3. Check for licensing.

All lenders in Nigeria must be licensed by the Central Bank of Nigeria. Check the lender’s license number and verify it with the central bank. If they are not licensed, do not do business with them.

4. Read the terms and conditions.

Before signing any loan agreement, make sure you read and understand the terms and conditions. Check for hidden fees or charges that could be added on later. If anything seems unclear, ask the lender to explain it to you.

5. Be wary of high-pressure tactics.

If a lender is pressuring you to take out a loan quickly, without giving you time to think about it or consider other options, this could be a sign of a scam. Legitimate lenders will not rush you into making a decision.

6. Never pay upfront fees.

If a lender is asking you to pay upfront fees, this is a red flag. Legitimate lenders will not charge you any fees before you receive your loan. Any upfront fees could be a sign of a scam.

7. Verify the lender’s identity. Scammers may use fake identities to lure in unsuspecting borrowers. Check the lender’s identity by asking for their full name, address, and phone number. You can also verify their identity by checking their social media profiles or searching for them online.

8. Watch for too-good-to-be-true offers.

If a lender is offering you a loan with very low interest rates or no credit checks, be cautious. These offers may sound tempting, but they could be a sign of a scam. Legitimate lenders will typically require some form of credit check and will charge interest rates based on your creditworthiness.

9. Don’t give out personal information.

Be cautious about giving out your personal information to lenders or loan platforms. Scammers may use this information to steal your identity or access your bank account.

10. Seek advice from a financial expert.

If you are unsure about a lender or loan offer, seek advice from a financial expert. They can help you understand the risks and make an informed decision.

Conclusion.
Loan scams are a real problem in Nigeria, but with the steps listed above you can take to protect yourself from them .

It is also important to note that loan scams are not limited to just online platforms or individual lenders. Other types of scams include investment scams, lottery scams, and phishing scams. In some cases, scammers may pose as representatives of banks or financial institutions. They may use official-looking emails or letters to trick you into believing they are legitimate. Always be vigilant and skeptical of any offer that sounds too good to be true.

If you do fall victim to a loan scam or any other type of financial scam, report it to the appropriate authorities. You can contact the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN), or the Nigerian Police Force.

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Written by Tunmise. Writer for Detty Finance.

https://www.linkedin.com/in/tunmise-oyebamiji-267514217/

Detty Finance
Detty Finance

Written by Detty Finance

A lifestyle platform that helps individuals and businesses to be better debt managers.

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