List of Fake Loan Apps in Nigeria You Should Avoid in 2023
Identifying fake loan apps in Nigeria is essential to be on the right track for financial aid.
In recent years, the Nigerian fintech industry has witnessed significant growth.
With the emergence of various online lending platforms, Nigerians have been able to access loans easily and conveniently
Without having to go through the rigorous process of obtaining loans from traditional financial institutions.
However, with this convenience has come an increase in the number of fake loan apps in Nigeria.
These apps are designed to defraud unsuspecting borrowers.
In this article, we will explore some fake loan apps in Nigeria, how they operate, and how you can protect yourself.
What are Fake Loan Apps in Nigeria?
The existence of fake loan apps in Nigeria is increasing day by day.
Fake loan apps are also referred to as Keyboard fake loan apps.
Keyboard fake loan apps are a type of fraud perpetrated by cybercriminals who create fake mobile lending apps that mimic legitimate lending institutions.
These apps typically portray themselves as easy-to-use tools to get quick loans on the go. However, in reality, they are tools used by fraudsters to deceive unsuspecting borrowers into providing sensitive and personal information.
This gives ways for them to defraud individuals while embezzling money from their accounts.
List of Fake Loan Apps in Nigeria.
Here is a list of recognized fake loan apps in Nigeria:
- ChaCha
- GGMoney
- Maxi Credit
- GoCash
- Cash Mall
- ForNaira
- EasyCredit
- CashLion
- Here4U
- FastMoney
- Cash Wallet
- 9Credit
- NairaPlus
- GotoCash
- LendCash
- SoftPay
- BorrowNow
- 9ja Cash
- Palmcash
- NCash
- Speedy Choice
- Sokoloan
- GotCashger
How Do Fake Loan Apps in Nigeria Operate?
Keyboard fake loan apps typically operate in three main ways:
1. Phishing
Phishing is a technique used by cybercriminals to obtain sensitive and personal information from unsuspecting users.
However, the fraudster creates a fake app that mimics a legitimate lending institution.
The app is then distributed through various channels, including social media platforms, SMS, or email.
When users click the link to download the app, they are redirected to a website that looks like the legitimate lender’s site.
Moreover, the user is instructed to download the app and create an account using their personal information.
The fraudster sends phishing emails or SMS messages requesting additional information, such as bank details, BVN, and other personal information.
Once this information has been obtained, the fraudster can use it to obtain loans or commit other fraudulent activities.
2. Hidden Fees
Some keyboard fake loan apps in Nigeria may not be outrightly fraudulent.
Regardless, they may include hidden fees and charges that are not clearly stated in the loan agreement.
These fees may include processing fees, transaction fees, or other hidden charges that can significantly increase the cost of the loan.
Once a user agrees to the terms and conditions of the loan
They may be required to make payments without fully understanding the cost implications of the loan.
3. Unauthorized Access to User Data
Some keyboard fake loan apps may request permission to access users’ contact lists, SMS messages, call logs, and other sensitive information.
This information can be used for various fraudulent activities, including spamming contacts with unsolicited messages and stealing personal information.
How to Identify Fake Loan Apps in Nigeria
Identifying fake loan apps can be tricky, but there are some signs that you can look out for that will help you spot these fraudulent apps.
Here are some of the things to look out for when trying to identify fake loan apps:
1. Unprofessional App Design
One of the first things to look out for is the design of the app.
If the app looks unprofessional or poorly designed, it could be a sign that it is fake.
Reputable lenders invest in professional app design and will have a well-designed and user-friendly interface.
2. Unrealistic Loan Offers
If an app promises to provide you with large loans at low-interest rates without requiring much information from you, then it is probably too good to be true.
Always read the loan offers carefully to ensure that they are realistic.
However, many individuals who fall into the hands of cybercriminals are mostly individuals who are looking to obtain a loan without BVN.
3. No Physical Address or Contact Information
A legitimate lender should have a physical address and contact information that you can use to contact them if you need to.
However, If the app does not have any information on how to reach the company, then it is probably fake.
4. Unknown Company or Brand
Fake loan apps may use names that are similar to known companies or brands, but they will usually have small differences in spelling or logos.
Always verify the legitimacy of the company before downloading the app.
5. Requesting Security Information
Be wary of loan apps that request your security information, like your bank details, BVN, or passwords.
Legitimate lending institutions will never ask for sensitive information except if necessary.
6. High Processing Fees or Charges
Fake lending apps may include high processing fees and charges that are not clearly defined in the loan agreement.
Before accepting any offer, read the terms and conditions of the loan to understand all the costs involved.
How to Protect Yourself Against Keyboard Fake Loan Apps in Nigeria
To protect yourself against keyboard fake loan apps, you should take the following precautions:
1. Verify the Lender’s Identity
Before downloading any mobile lending app, verify the lender’s identity by visiting their official website.
Also, check their registration status with regulatory bodies, and read reviews from other borrowers.
This gives you an insight into the legitimacy of the loan apps.
2. Read the Loan Agreement Carefully
Read the loan agreement carefully before accepting any loan offers.
Ensure that you understand the terms and conditions of the loan, including the interest rates, fees, and repayment terms.
3. Don’t Share Sensitive Information
This is essentially important in every loan app communication.
Avoid sharing sensitive information such as bank details, BVN, or passwords with anyone, especially third-party apps that claim to be lending institutions.
4. Use Two-Factor Authentication
Use two-factor authentication whenever possible to protect your accounts from unauthorized access.
5. Report Suspicious Transactions or Activities
Report any suspicious transactions or activities to your bank or the relevant authorities immediately.
This helps secure your identity and account and is a clue to apprehending cybercriminals.
Conclusion
Fake loan apps in Nigeria are becoming increasingly prevalent.
Moreso, there have been so many unsuspecting borrowers recorded to have fallen victim to these fraudsters.
Fraudulent loan apps can result in significant financial loss and damage to your credit score.
These apps are designed to trick users into providing personal and sensitive information, which can be used for fraudulent activities.
We all must take the necessary precautions to protect ourselves from these scams.
By looking out for the signs mentioned above, we can avoid falling prey to these Fake loan apps in Nigeria and other similar scams.
Frequently Asked Questions on Fake Loan Apps in Nigeria
What are fake loan apps?
Fake loan apps are mobile applications that promise to offer loans at attractive rates but turn out to be fraudulent.
These apps fraudulently collect users’ personal and financial information.
However, this information is used for shady purposes, including identity theft, extortion, and scams.
What are the consequences of using fake loan apps in Nigeria?
Using fake loan apps in Nigeria can have severe consequences, including identity theft, financial fraud, and cybercrime.
Additionally, users may end up repaying loans with high-interest rates and exorbitant fees, leading to increased debt.
What should I do if I have already downloaded a fake loan app?
If you have already downloaded a fake loan app, you should immediately delete the app and uninstall it from your phone.
Hence, You should also change any passwords associated with the app and monitor your financial accounts for any suspicious activity. Additionally, you can report the app to the appropriate authorities or consumer protection agencies.
Are all loan apps in Nigeria fake?
No, not all loan apps in Nigeria are fake.
There are many legitimate lending companies in Nigeria that offer loans through mobile apps. However, it is essential to do your due diligence and research the company before downloading the app and submitting any personal information.
What legal action can I take against fake loan apps?
If you have fallen victim to a fake loan app in Nigeria, you can take legal action against the app developers and their partners, including reporting to law enforcement agencies or filing a lawsuit to recover any damages that you may have incurred.
Can fake loan apps affect my credit score?
Yes, fake loan apps can affect your credit score if they report false information to credit bureaus or use your personal information to open fraudulent accounts in your name.
It is important to monitor your credit score regularly and report any suspicious activity to the credit bureau.
How can I get legitimate loans through mobile apps in Nigeria?
To get legitimate loans through mobile apps in Nigeria, you should research and verify the authenticity of the lending company before downloading the app.
Legitimate loan apps will have clear terms and conditions, fees, and interest rates listed on their website or app.
Moreso, legitimate lenders will not require excessive personal information or access to your banking details.
