Many borrowers are good people with intentions of paying back what they owe. Others, though, are just bad apples. They want to borrow money from a moneylender but don’t want to pay them back. They scam, deceive, and manipulate lenders hoping to get ‘free money’. They think they can outsmart lenders.
You might be wondering, why do they think they can get away with scammy behaviour? Here are five reasons.
They think they won’t be caught
Unscrupulous borrowers often mistakenly think that lenders won’t notice their deceptive tactics. Some may even think that for small loan amounts, the lenders won’t give them any mind if they commit fraud. They think it’s just a small loan after all, so perhaps the lender won’t bother going after them.
But the truth is lenders have their ways. Fraud prevention is huge these days, and lenders always protect themselves with the latest anti-fraud methods and technologies. Scammy borrowers will get noticed, and they will get caught. It doesn’t matter if the scammers use small loans or large loans. One way or another, they will get caught.
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They think they can manipulate lenders
Bad borrowers also think they can emotionally or socially manipulate lenders to get their way. But again, because nearly all lenders are trained in fraud prevention, they can see through these tactics.
Manipulation is especially ineffective these days because most lenders use digital transactions and automation. Machines are virtually impossible to fool using social engineering, deception, and manipulative tactics. As lenders automate more and more of their processes, bad borrowers will find it harder and harder to get away with fraud.
They think they can use loopholes to get away
Dishonest borrowers may take advantage of the complex nature of the financial industry. This complexity allows for certain loopholes these borrowers can exploit.
But now, lenders have also become skilled in closing these loopholes. What bad borrowers think they can confidently exploit can now get them in trouble.
They underestimate the technologies lenders use
Lenders now utilize the latest advancements in artificial intelligence (AI) and machine learning (ML) to deter fraud. AI and ML can easily stop bad borrowers in their tracks. The best part is AI and ML can be ten steps ahead of the fraudsters, preventing them from even making the first move.
For example, many scammy borrowers use fake documents to get approved for loans. Others may even use fake IDs. AI and ML can easily detect forged papers, though, so the scammers can no longer proceed with their plans.
They have become desperate
Desperation can drive some people to do the craziest of things. This includes attempting to scam and outsmart lenders. They no longer think of the possible consequences of their actions. All they want to do is get money any way they can.
Because desperate people are prone to making bad decisions, this increases their chances of getting caught. One wrong move, and lenders will quickly catch up to their fraudulent tactics.
Conclusion
Bad borrowers have certain assumptions they use to try and get away with their scammy tactics. But these don’t work with modern lenders. They use a combination of skills and technology to stop bad borrowers dead in their tracks.
