Adrian Rubin Crunchbase on How to Avoid Payday Loan Scams

The list of financial scams to be aware of is almost endless nowadays. According to Adrian Rubin Crunchbase is a great place to find out about the latest ones, but spotting them means that at least one person has already fallen victim to them. One of the most common tactics today, for instance, is for a scammer to pose as law firm and threaten and harass individuals and their family and friends, stating that they will sue them. They may, for instance, claim that you have taken out a payday loan and not paid it back. Their aim is for people to become so afraid that they agree to pay, thereby handing over their bank account or credit card information.

Standing up to Threats According to Adrian Rube Crunchbase

In a recent FBI probe, it appeared that some 70,000 victims have had their identity stolen as a result of payday loan fraud. While the FBI has made many charges under the RICO Act, this fraud still continues and the victims are mounting up. Scamming is an easy way for unscrupulous individuals to get money and to steal identities, and it seems that very little can be done.

You may wonder why someone would fall for the scam of suggesting that a payday loan has not been paid back. The reason for that is that these people usually have taken out such a loan in the past. They will instantly believe, therefore, that they forgot to pay it or, if they know they did pay it, that it was sent to the wrong account. The scammers seem to have all the relevant information about the payday loan they did take out, including personal references, employer information, and even social security number.

The problem with this is that it looks very realistic, so how do you know that it isn’t actually a scam? Unfortunately, it isn’t yet clear how scammers are gaining this information. There are two suggestions, however:

  1. The payday loan companies are in on the scam.
  2. The payday loan companies have had their system hacked and have not been open and honest about this.

According to Adrian Rube, however, there are a few things that you can do in order to not be scammed out of your money. Essentially, you need to use common sense:

  1. Real law firms do not require you to make payments over the phone.
  2. Most scammers work offshore so that they are almost outside of the law. You can hear this from their accent.
  3. A real law firm would be happy to provide you with a copy of your loan agreement before you have to pay anything.
  4. Real law firms should have telephone numbers and websites in this country that you can take a look at to determine whether they are genuine or not.

A lot of people have already been victimized by the payday scam. Make sure you are not the next one.

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