Most infamous fake loan Apps in Nigeria November 2023
This article provides a list of the most infamous bogus loan applications to avoid using in Nigeria in 2023, as well as solid indicators that may be used to independently detect them in the future.
With the rapid digitization of financial services, there has been a marked rise in online lending platforms. While many of these serve as a beacon of hope for those in urgent need of funds, not all of them have pure intentions. Unfortunately, Nigeria has seen its fair share of malicious actors looking to exploit its citizens with fake loan apps. Let’s delve deeper into this pressing issue and understand which apps you need to steer clear from and how to spot them.
The Surge of Online Loan Scams
In recent times, Nigeria has witnessed an unprecedented growth in online lending solutions. Yet, this progress has a dark side, with countless scammers using deceptive loan apps to prey on the financial desperation of Nigerians.
These malicious apps often lure unsuspecting victims with the promise of substantial loans at incredibly low interest rates. By capitalizing on the needs of their victims and the vast, anonymous expanse of the internet, these fraudsters have managed to trap many.
Identifying the Wolves in Sheep’s Clothing
Before we get into the blacklist of fake loan apps in Nigeria, it’s crucial to arm ourselves with knowledge. Here are some tell-tale signs that can help you discern between a legitimate lending platform and a predatory one:
- Too Good to Be True Offers: If an app promises massive loans at interest rates that seem too good to be true, it probably is. Always compare the rates with market standards.
- Aggressive Collection Practices: Genuine lenders follow a structured and legal process for loan recovery. If an app threatens you or uses uncouth methods, it’s a red flag.
- Suspicious Permissions: A legitimate app will only seek permissions that are pertinent to the lending process. If an app is asking for unrelated permissions, it’s a sign to be wary.
- Lack of Transparency: Any genuine financial service will be transparent about its terms, conditions, and fees. If this information is missing or is unclear, think twice.
The Blacklist: Fake Loan Apps in Nigeria (2023)
Based on several factors, including being delisted from the Play Store, facing actions from the Federal Competition and Consumer Protection Commission (FCCPC), and employing illegal or aggressive collection tactics, we’ve curated a list of notorious fake loan apps in Nigeria:
- Easy Moni
- Maxi Credit
- Speedy Choice
How to recognize Fake loan apps in Nigeria
Does the app or the firm that makes it have a physical location as well as a website?
ake sure the app shows a real physical address if you want to borrow. Don’t use the loan app if there’s no valid address for the lender. Scammers often hide their details to avoid getting caught.
A legit lender will have an official registered place. Their name, phone, address, and email should be on their website.
Look into the company behind the loan app. A trustworthy lender will have a website linked to their app. Don’t proceed with an app that lacks a website.
Inaccessible from the Google Play store
The Google Play Store has many fake loan apps. However, most of these bad loan apps are found on other unofficial sites, not on the Play Store.
Because so many people in Nigeria use the Play Store, Google has had to make their checks stricter to stop scams. Google has also removed some scam apps from the store after the FCCPC asked them to.
One of these apps, called Sokoloan, was removed from the Play Store because a regulatory group told Google to. VoiceofNigeria says the FCCPC also wants apps like Maxi Credit, Here4U, ChaCha, and SoftPay gone because they behave badly.
People in Nigeria who want loans without a BVN are often tricked by these fake loan apps. These apps are not on the Play Store. Some bad loan sites use this as a way to attract people
Check the internet for ratings and reviews of your lending institution.
Many people who have used loan apps often leave reviews on the Google Play Store or other websites. Reading these reviews can help you understand the type of loans the app offers. It’s also good to check the app’s ratings on the Google Play Store.
Before deciding on a lender, it’s wise to look up their ratings and what customers have said about them online. By checking reviews on trusted sites, you can learn about the lender’s behavior and if they have acted unfairly in the past.
Unfair and abusive methods of collection
Fake loan apps in Nigeria use strong-arm tactics that are a big concern. These apps give loans but first, they ask for personal details and data from the borrower’s phone, like their contacts and financial records.
Often, the amount lent is much less than what was asked for. Soon after giving the loan, these apps start asking for their money back with very high interest. They text and call the borrower, pressuring and even threatening them and their families.
Sometimes, these apps send fake messages to the borrower’s contacts. They wrongly accuse the person who took the loan of crimes, or even send scary pictures. These actions are against the law in Nigeria and are signs of a scam loan app.
GoCash, Okash, EasyCredit, Kashkash, Speedy Choice, and Easy Moni were such apps. They were caught by Nigerian authorities for breaking privacy rules and trying to get money back from borrowers in bad ways
Check to see how much access to your personal information the lender is requesting.
Some loan apps ask for permission to see your contacts and photos to check if you’re genuine. Good lenders keep this information private and won’t share it.
With new tech in the finance world, lenders can now check if you qualify for a loan without needing to see your photos and contacts. When lenders can do this, it stops bad behavior.
Good online lenders also check their systems to make sure customer data is safe. Before you give any personal info to a lender, make sure to research them well.
Does loan apps have a website, and if so, how secure is it?
On the pages of your lender’s website where you are required to submit your personal information, you should look for an emblem that looks like a lock. Websites that begin their URLs with https:// are considered to be secure because they take precautions to prevent personal information from being obtained by identity thieves.
If your lender is credible, it will safeguard your information against fraudulent loan offers and make sure it is encrypted and inaccessible to third parties.
In addition, if your lender does not provide clear information about important aspects of the loan, such as the interest rate, then the application for the loan is most likely a fraud.
More Ways to Spot Fake Loan Apps in Nigeria
Here are some tips for spotting fake loan apps in Nigeria:
- Check the app’s reviews: Look for reviews from users who have actually used the app and received a loan. If the app has mostly positive reviews, it’s more likely to be legitimate.
- Research the company: Look for information about the company that operates the app, including its website and social media presence. If you can’t find any information about the company online, or if the information you find seems suspicious, it could be a red flag.
- Look for red flags: Be wary of loan apps that require you to pay a fee upfront or that promise guaranteed approval. These are common tactics used by scammers.
- Be cautious of unsolicited offers: If you receive an unsolicited offer for a loan, be extra cautious. It’s possible that the offer is legitimate, but it’s also possible that it’s a scam.
- Use a secure device: If you do decide to apply for a loan through a mobile app, make sure you’re using a secure device. Scammers may try to steal your personal information if you use a device that is not secure.
If you’re unsure about the legitimacy of a loan app, it’s always a good idea to do your research and be cautious before providing any personal or financial information. If you have concerns about a particular loan app, you can report it to the Nigerian Financial Intelligence Unit (NFIU) or the Central Bank of Nigeria (CBN).
Some of the most notorious ones include ChaCha, Easy Moni, EasyCredit, GoCash, Here4U, Kashkash, Maxi Credit, Okash, SoftPay, Sokoloan, and Speedy Choice.
Fake loan apps often promise unrealistic loan offers, seek unnecessary personal data, use aggressive debt collection methods, and operate outside regulatory oversight.
Genuine loan apps operate under regulatory oversight, provide transparent loan terms, follow strict data privacy and protection laws, and offer realistic loan amounts.
The increase in mobile technology use and the high demand for quick loans in Nigeria have contributed to the rise of fake loan apps.