Fintech users must have felt how to make illegal money loans lure online loan customers from various channels. Starting from SMS, social media, telephone, email and many more. Even if we follow the social media of just one fintech, surely many will follow our account and get an offer from the fake fintech.
Even in an urgent situation, do not ever fall asleep with offers such as cash withdrawals, credit disbursements, 100% approval and others. Because if someone is exposed to illegal fintech snares like this, then some of these dangers will threaten that person.
To avoid the haunting of illegal fintech snares, let’s look at the dangers of using these services.
Misuse of Personal Data on Cellphones
Usually, illegal fintech will provide a personal link to their victims to download the fintech application. If you register for an online credit application, the fintech application will usually ask for permission to access the prospective customer’s personal data.
This is where illegal fintech practices naughty practices by misusing customers’ personal data and making it a tool to threaten customers when they experience bad credit. For this reason, before continuing to borrow money, customers must read carefully the provisions contained in the application.
However, when registering with a trusted fintech, it certainly will not misuse customers’ personal data. The access permit request is not solely done to threaten customers during the billing process, but rather as one of the processes for analyzing the creditworthiness of prospective customers. Like conventional banks that conduct direct surveys or by telephone to family members and relatives to analyze customer creditworthiness, the process of accessing personal data on an online credit application is useful for the same thing.
In addition, fintech is also required to provide a security system that includes procedures, prevention, and countermeasures against threats and attacks that cause disruption, failure, and loss.
The Financial Conduct Authority (FCA) also sets sanctions in the event of breaches of obligations and prohibitions in FCA rules. The FCA has the authority to impose administrative sanctions on organizers in the form of written warnings, fines, restrictions on business activities and revocation of licenses.