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Instant sms loans prone to fraud

Consumer Agency and Ombudsman of Finland: says the system of granting instant loans via mobile phone and a sms message or the Internet is highly prone to fraud.

A test done by the newspaper Keskisuomalainen reports that, 7 out of 8 sms loan companies granted instant sms loans even though the money did not end up in the phone owner’s account. In some cases, the loans were granted in a matter of minutes.

Instant loans are easy ways to get a little extra cash, usually up to a couple hundred euros, by ordering them via text message. The Consumer Agency says it’s far too easy to use someone else’s phone to deposit money in any bank account, leaving the handset owner to pay the bill.

In many cases, all that’s needed to order a loan is a little information about the owner of the mobile phone, including his or her social security number.
Instant loan companies in Finland that grant instant loans say that abuses are fairly rare.
Sms loans are quite synonymous with micro loans and fast loans. The concept of sms loans comes from Finland and have spread to the other Nordic countries.

Article source.

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