Looking to avoid falling into the wrong hands while trying to get funds to take care of your financial situation? Here is a list of fake loan apps in Nigeria in 2024 that were blacklisted by CBN.
Over the years, there has been an increased popularity of loan apps because of the difficulty in accessing loans from banks, and this has given rise to so many fraudulent loan apps in Nigeria. These platforms use enticing offers to lure their users in order to steal their information and use it for so many illegal activities and extortion.
These fake loan platforms take advantage of users who desperately need funds, promising them instant access to cash, and a flexible interest rate. However, the essence of this promise is to trap them in order to steal their bank information and use it to monitor and empty their account, or use their information to commit crime.
What are fake loan apps?
Fake loan apps are loan apps designed to deceive and extort users.
These platforms promise their users an easy and instant loan, only to trap them with a high interest rate that will be difficult to pay back; they harass the contacts on your phone list and also use your personal information to carry out their evil activities.
These apps pretend to be real and professional, but they are not. They are created by fraudsters to steal from users unknowingly.
They use fake reviews, customer service, and loan offers just to steal financial and personal information from users.
Fake loan apps became so popular because the lending industry was not regulated, unlike the conventional banks in Nigeria, making it easy for fraudsters to invade the industry and cause mayhem. In addition, the internet also makes it difficult for them to be traced and arrested.
With the numerous loan apps in Nigeria, it has become necessary for users to be aware of the activities of these fake loan apps and be cautious in order not to be a victim of their fraudulent schemes.
We can detect fraudulent loan apps, so in this article, we will discuss how they operate, the tactics they use, and how to identify them.
By understanding their scheming activities, individuals can be able to protect themselves against scams and guard their sensitive information from falling into the wrong hands.
So the authorities have compiled the list of fake loan apps in Nigeria in 2024 to keep individuals informed about their activities.
HOW TO KNOW FAKE LOAN APPS
No License
These fake loan apps could operate freely in Nigeria because no one checked them from the beginning, giving them the freedom to harm people in various ways.
The Central Bank of Nigeria (CBN) and other regulatory bodies has now registered credible loan apps in Nigeria to ensure that users are safe and their information does not get into the wrong hands.
While the government has played its part, individuals should also do their part by ensuring they verify whether loan apps are registered before using them, because unregistered loan apps are a danger zone and should be avoided.
Fake Loan Apps Has No Physical Address
These loan apps give addresses and phone numbers that are not real, and so many people have become their victims, trusting them without checking if the information they provided is real.
Real loan platforms have physical offices and genuine contact addresses that users can walk into and make inquiries or complaints. So when you come across a loan app and want to use their platform, check if they have physical addresses and if their contacts are valid.
Bad Customer Feedback
Customer’s reviews are from users who have patronized those fake loan apps and decided to share their experience. The user’s feedback will tell you if the loan app is legit or if you should stay away from it.
Sometimes these loan apps use fake reviews on their platforms to deceive people, so the only way to get genuine feedback from people is by reading as many feedbacks as possible because even though they can use fake reviews, they won’t be able to post many of them, which helps avoid suspicion.
Fake Loan Apps Asks for Too Much Permission
Fake loan apps are fond of asking for extra access to vital data on your phone before they can allow you access to a loan. Some of these accesses are camera and microphone permissions.
You should avoid these unnecessary accesses when requesting a loan because there is no good reason to ask for such access except to steal vital information.
High interest rate
Interest rate is what you are asked to pay together with the loan fee that was given to you by a loan platform.
The interest rate on some of these platforms is ridiculously high, and most times it is difficult to pay back.
These loan apps know that individuals are desperate for money and do not check the interest rate or the terms and conditions, so they set very high interest rates and unfavorable conditions.
As an individual who has little finance and is struggling with bills, the last thing you need is some loan apps, adding to the financial challenges you are already facing, so it is important you check the interest rate and also the terms and conditions to see if they are favorable to you.
Debt collection practice
Fake loan platforms are awful when it comes to collecting their loan fees from customers; they are aggressive and resort to threats and harassment using the personal information they get from your phone.
They go to the length of threatening your contacts just to get their money, and this can be a nightmare for individuals. So you would want to watch out for these platforms and stay far away from them.
No website
Genuine loan apps have websites that tell about the companies, their goals, and every other necessary information.
Fake loan apps do not have websites, and even when they do, the websites are not secure. For example, a loan app with a website that has “HTTP” should be avoided.
Secure websites are known with “HTTPS, so users should always look out for websites with the unsecured protocol (HTTP) because they are risky and dangerous.
The Nigerian government and the Federal Competition and Consumer Protection Commission (FCCPC) removed many loan apps from the Google Play Store, and this was as a result of continuous intimidation from these loan apps.
These loan platforms were found to be involved in bad activities such as charging ridiculous interest fees and using foul language with borrowers.
Fake Loan Apps in Nigeria
The list of fake loan apps in Nigeria in 2024 removed from the Google Play Store by the Nigerian government and the Consumer Protection Commission (FCCPC) are:
- Swiftkash App
- Hen Credit Loan App
- Cash Door App
- Joy Cash-Loan
- Eaglecash App
- Luckyloan
- Personal Loan App
- Getloan App
- Easeloan Apps
- Naira Naija
- Cashlawn Ap
- Easynaira Ap
- Crediting App
- Yoyi App
- Nut Loan App
- Cashpal Ap
- Nairaeasy Gist Loan Ap
- Camelloan App
- Nairaloan App
- Moneytreefinance
- Cashme App
- Secucash App
- Creditbox App
- Cashmama App
- Crimson Credit App
- Galaxy Credit App
- Ease Cash App
- Xcredit
- Imoney
- Naira Naija
- Imoneyplus-Instant
- Nairanaija-Instant
- Nownowmoney
- Naija Cash
- Eagle Cash
- Firstnell App
- Flypay
- Spark Credit.
REGULATORY MEEASURES
The government has taken a huge step in curbing the activities of these fake loan apps in Nigeria, such as removing them from the Google Play Store and creating a body to investigate other illegal loan apps. Users are to play their own role in ensuring that they do not fall into the hands of other fake loan apps as the government investigates to uncover them. Some of the measures are:
- Individuals should practice responsible borrowing, and this includes reviewing the terms and conditions of a loan app before applying for a loan.
- Check if they are among the list of lending apps approved by the Central Bank of Nigeria (CBN) to practice.
- Read through their terms and conditions, as well as their interest rate.
- Research the apps and get customer feedback to know what people are saying about them.
- Visit their website to learn about them and also check if they are using the secured protocol.
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Conclusion
To prevent the danger of allowing sensitive information to get into the hands of fake loan apps, users should be able to carry out thorough research before using a loan app, confirm if its registered, read users reviews, avoid giving unnecessary permission, check if they have a website with a secured protocol and understand clearly the terms and condition.
Do you find this article on the list of fake loan apps in Nigeria in 2024 helpful?
You can Also read: (Best Loan Apps in Nigeria)
