Consumer lending platforms have been warned that attempted loan fraud is set to rise by 150 per cent this week, as consumers race to secure Black Friday deals.
Online fraud prevention firm SEON has predicted that online lenders will see a 300 per cent surge in the use of suspicious emails ahead of Black Friday. It added that the availability of cheap virtual phone numbers, custom domain names and email accounts has made it easier than ever for fraudsters to illegally apply for loans.
Several peer-to-peer lending platforms have been offering cashback deals and ‘refer-a-friend’ incentives in the spirit of Black Friday week.
Read more: CBILS loan fraud could cost £130m
“Our data highlights the risks that online lending platforms face in the run up to Black Friday,” said Tamas Kadar, co-founder and chief executive of SEON.
“It’s important that those involved in the sector do all they can to mitigate these concerns in time for the big day. If not, we could be about to see huge levels of online fraud committed.
“If you’re involved in the online lending sector then it might be time to assess your current online fraud prevention protocols.
“Our research clearly indicates that many in the industry aren’t currently doing enough to protect their businesses from the threat of online fraud. Fortunately, there are now adaptable platforms, such as our own, which can offer impressive protection.”