In recent years, the use of mobile apps for loan applications has become increasingly popular in Nigeria.
However, with this rise in popularity comes the emergence of fake loan apps that promise quick and easy loans but ultimately deceive and scam users.
These apps can be found on various app stores and often require personal information or charge high fees, leaving unsuspecting users in financial distress.
It is crucial for individuals to be aware of these fake loan apps and to take steps to protect themselves from falling victim to them.
In this article, we will discuss the types of fake loan apps currently being used in Nigeria, how to spot a fake loan app and a list of known fake loan apps in Nigeria.
We will also provide tips on how to report a fake loan app and the legal consequences of running a fake loan app.
With this article, we aim to provide you with a comprehensive list of fake loan apps in Nigeria that you should be aware of and avoid.
What Are Fake Loan Apps?
Fake loan apps are mobile applications that falsely advertise themselves as legitimate lending platforms, but are actually designed to scam users by collecting personal information and charging hidden fees.
These apps, which have been banned or sanctioned by the Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria, often collect sensitive information such as ATM card numbers, PINs, pictures, bank account numbers, BVN, and transaction pins.
They may also contain malware that can infect the user’s device. The harm caused by these apps includes unauthorized withdrawals from bank accounts, selling personal information, and gaining access to personal information through malware infections.
List Of Fake Loan Apps In Nigeria 2023
Here is a list of known fake loan apps in Nigeria that individuals should be aware of and avoid:
- Speedy Choice
- Ease Cash
- Rapid Naira
How To Spot Fake Loan Apps In Nigeria
1. Research The App
Before downloading any loan app, research it thoroughly. Look for reviews, check if the app has a website, and verify if the contact information provided is legitimate.
2. Check The App’s Source
Only download loan apps from official app stores such as Google Play Store or Apple App Store. Avoid downloading apps from third-party websites or sources as they may be fake or contain malware.
3. Look For Red Flags
Be ware of loan apps that promise instant approval or require upfront fees. These are common tactics used by fake loan apps to scam users.
4. Unavailability On Google Play Store
A loan app that is not available on Google Play Store is a major red flag and should be avoided. Google has implemented stricter filters to prevent fake loan apps from being available for download on its platform.
If a loan app is not available on the Google Play Store, it is likely that it has been banned or removed for being fraudulent.
Additionally, the FCCPC has been actively monitoring and taking action against fake loan apps in Nigeria and has requested the withdrawal of several apps from the Google Play Store.
5. Check For FCCPC Ban
Checking if an app has been banned by the Federal Competition and Consumer Protection Commission (FCCPC) is another important step in identifying fake loan apps in Nigeria.
The FCCPC is the regulatory body in Nigeria that monitors and takes action against fake loan apps. If an app has been banned by the FCCPC, it is likely to be fraudulent and should be avoided.
To check if an app has been banned by the FCCPC, individuals can do the following:
- Visit the FCCPC website: The FCCPC has a section on their website where they list apps that have been banned or sanctioned.
- Check for press releases: The FCCPC may also issue press releases or make announcements about apps that have been banned.
- Contact the FCCPC: If an individual is unsure about the authenticity of an app, they can contact the FCCPC for more information.
By checking if an app has been banned by the FCCPC, individuals can ensure that they are not using a fake loan app and protect themselves from falling victim to fraud.
6. Request For Sensitive Information
Additionally, legitimate loan apps will not ask for sensitive information such as ATM card numbers, and transaction PINs. They will only require basic personal information and proof of income.
When in doubt, it is best to research the app before providing any personal information. Look for reviews, and customer feedback, and check if the app is listed on the FCCPC’s list of banned loan apps in Nigeria.
7. Unreal Interest Rate
Another way to spot a fake loan app is by looking at the interest rate they offer. Unrealistically low or high-interest rates are a red flag. If an app is offering interest rates that seem too good to be true, it’s probably a scam.
Legitimate loan apps will have interest rates that fall within a reasonable range, and will also be transparent about their fees and charges.
According to research, the least interest rate on loans in Nigeria by loan apps is usually around 0.6 to 0.8 per cent per day.
Therefore, be careful if you come across loan apps that promise to offer less than that. Before committing to a specific loan app in Nigeria, it is essential to investigate the interest rates offered by the competitors.
8. Check The App’s Permissions
Before installing a loan app, check the permissions it is requesting. If the app is asking for excessive or unnecessary permissions, it may be a fake app.
Pay attention to the permissions the app is requesting. If the app is asking for permissions that are not related to its function, such as access to your contacts or location, it is likely a fake app.
Some fake loan apps may request permission to make calls or send texts without your knowledge. This is a red flag as it could be used for fraudulent activities or harassment.
9. Check For Spelling And Grammar Errors
Fake loan apps may have spelling and grammar errors in their descriptions and reviews, indicating that they were not created by a professional.
10. Check For Lack Of Details
A genuine loan app will have detailed information about the loan process, the interest rate, and the repayment schedule. A fake loan app will lack this information.
How To Report Fake Loan Apps In Nigeria
To report a fake loan app, you can follow these steps:
- Take screenshots or record any evidence of fraudulent activities or false information provided by the loan app.
- Gather information about the loan app, including the name, developer, and contact information.
- Contact the regulatory bodies in charge of monitoring and regulating loan apps in your country. In Nigeria, you can contact the Central Bank of Nigeria (CBN), the Federal Competition and Consumer Protection Commission (FCCPC), the Nigerian Communications Commission (NCC), and the Nigerian Information Technology Development Agency (NITDA)
- Provide your evidence and information about the loan app to the regulatory bodies.
- Report the loan app to the online App Store or platform where it is available for download.
- If you have been a victim of a fake loan app, you should also report the incident to the police for further investigation.
Frequently Asked Questions On Fake Loan Apps In Nigeria
Which Loan App Is Banned In Nigeria?
The list of Loan apps banned in Nigeria includes:
Cash Mall, CashLion, FastMoney, LendCash, BorrowNow, LCredit, NairaPlus, 9ja Cash, Cash Wallet, Mikoloan, SuperCash, XCredit, Star Loan, Kashpal, Monicredit, Creditup, Zuma Cash, LionCash, Ajeloan, GGMoney, 9Credit, Sokoloan, Palmcash, Ease Cash, ForNaira, Lucky Loan, Ucredit, NowCash, GotCash, NCash, GotoCash, GoCash, KashKash, Rapid Naira, EasyMoni, EaseMoni, AngelLoan, Speedy Choice, EasyCredit, OKash, CycleCash, CashRain, iCoin, CreditHall, GetCash, iCredit, PalmCredit, Aimloan, CashFarm, and Oxloan.
What Loan Apps Are Removed From The Play Store?
The list of Loan apps removed from the Play Store in Nigeria are:
Cash Mall, CashLion, FastMoney, LendCash, BorrowNow, LCredit, NairaPlus, 9ja Cash, Cash Wallet, Mikoloan, SuperCash, XCredit, Star Loan, Kashpal, Monicredit, Creditup, Zuma Cash, LionCash, Ajeloan, GGMoney, 9Credit, Sokoloan, Palmcash, Ease Cash, ForNaira, Lucky Loan, Ucredit, NowCash, GotCash, NCash, GotoCash, KashKash, Rapid Naira, EasyMoni, EaseMoni, AngelLoan, Speedy Choice, EasyCredit, OKash, CycleCash, CashRain, iCoin, CreditHall, GetCash, iCredit, PalmCredit, Aimloan, CashFarm, and Oxloan.
Why Is Sokoloan Not On the Play Store?
Sokoloan is not on the Play store because FCCPC has requested its withdrawal from the online App Store due to suspected fraudulent activities the app is involved in.
In conclusion, it is important to be cautious when applying for loans through online loan apps in Nigeria. Some of these apps may be fake or engage in abusive collection practices, request sensitive information, have unreal interest rates or lack details.
Make sure you investigate the interest rates offered by competitors, check for the FCCPC ban, and be aware of the app’s permissions.
It is also important to be aware of the list of loan apps that have been banned or removed from the online app store by regulatory bodies such as the FCCPC and ICPC. By taking these precautions, you can protect yourself from falling victim to fraudulent loan apps.