In the digital era, Financial Technology (Fintech) has emerged to simplify transactions with various innovative features, one of which is Fintech Lending, which connects Lenders and Borrowers online. However, the rise of illegal loan scams posing as Fintech Lending is causing increasing concern among the public.
The growing number of fraud cases is certainly a serious concern. Batumbu, as an official and licensed Fintech Lending company regulated by Otoritas Jasa Keuangan (OJK), continues to conduct socialization and education efforts to improve financial and digital literacy in the community.
Characteristics of Fraudulent Activities with the Modus Operandi of Illegal Loans:
- Offering loans through third parties (telemarketers/salespeople), especially via instant messaging apps like WhatsApp.
- Promising low interest rates or long repayment periods.
- Offering financing with quick approval and instant disbursement.
- Requesting access to contact numbers outside of the required CAMILAN (Camera, Microphone, and Location).
- Providing links to download applications.
- Loan amounts offered are typically below IDR 10,000,000 (Ten Million Rupiah).
- The loan amount received is smaller than the amount applied for.
- Loan collection is conducted unethically, accompanied by threats of personal data dissemination.
Here are some things you should do to avoid falling victim to illegal loan scams:
1. Learn how to apply for a legitimate loan
When applying for a loan on a fintech lending platform, you must follow the established procedures to process and manage your loan. For legitimate fintech lending platforms, there is an application and approval process based on credit scoring assessments. It’s important for you as a borrower to understand the difference between the mechanisms of legal and illegal loans before applying.
2. Carefully observe the fintech platforms offering loans
Often, illegal or unofficial fintech lending platforms are found offering loans through phone calls, SMS, or WhatsApp. There are also individuals who offer loans under the guise of legitimate fintech lending platforms. This is certainly troubling and harmful if we don’t verify the authenticity of the fintech offering the loan. You can verify the legitimacy of the loan platform by checking the list of registered legal fintech lending platforms on the official OJK website and by verifying the official website of the fintech lending platform itself.
3. Increase your knowledge about borrowing and lending
Understanding how loans work, the terms and conditions, interest rates, and the responsibilities involved is crucial. Educate yourself on financial literacy, so you can make informed decisions when applying for a loan. There are many reliable resources, including websites, books, and financial seminars, where you can learn more about safe and legal borrowing practices.
The most important thing before you apply for a loan on a fintech lending platform is to first check whether the financial institution you choose is registered and supervised by Otoritas Jasa Keuangan (OJK). Also, make sure to carefully read the terms and conditions provided, and understand the interest rates and any additional fees that may apply to avoid getting trapped in unfavorable conditions.
Otoritas Jasa Keuangan (OJK), as the regulator of financial services, has issued regulations for companies operating in the FinTech sector, outlined in POJK No. 77/POJK.01/2016 regarding Information Technology-Based Money Lending Services (LPMUBTI). You can also use the OJK’s consumer complaint services through the Contact 157 service and/or the Consumer Protection Portal Application (APPK) at kontak157.ojk.go.id.
The official complaint service for Batumbu is available as follows:
Operating hours:
Monday - Friday, 08:30 - 17:30 (excluding national holidays)
Contact details:
Email : [email protected]
WhatsApp : 0811 1909 0077 (chat only)