The Consumer Affairs Authority (CAA) has warned the public to be cautious of fraudulent online loan schemes that promise instant loans with “no documents” or “no guarantors”.
The CAA said advertisements offering “instant loans within five minutes” could put consumers’ money, privacy and personal safety at risk.
It highlighted several risks associated with online loan scams, including borrowers not receiving the full amount requested due to hidden charges, excessive and unfair interest rates, unauthorised access to personal data stored on mobile devices, and threats, harassment and blackmail over delayed repayments.
The authority advised consumers to obtain loans only from financial institutions approved by the Central Bank of Sri Lanka and to avoid installing unknown loan applications.
Those who have fallen victim to such scams have been advised to immediately lodge complaints with the police or the Cyber Crime Investigation Division. (Newswire)