6 Ways Identity Thieves Get Hold of Your Data & How to Dodge Them

Identity thieves are the ones who steal personal or financial information of another person and use it to make transactions or purchases. Acts committed under identity theft are categorised as identity fraud. A variant of identity theft is application fraud where an applicant uses somebody else’s stolen identity to make an application for an account, policy, service or insurance claim. While identity thefts can be conducted in many ways, the proliferation of the internet and smartphones today has made way for more high-tech fraud methods. Here are some ‘cyber’ ways in which your identity may be stolen by the thieves.

1. Data Infringements

A data breach is a security conflict wherein personal or classified information is accessed without authorization of the owner. In terms of finance, data breaches can include stealing full names, credit card numbers, passwords, credentials for net banking, etc. Such data breaches can harm businesses and consumers particularly having multiple accounts and businesses.

2. Wi-Fi riders

If you are one of those who enjoy free Wi-Fi at the station or a cafe saving on a few bucks. Well, to let you know, hackers may be able to "eavesdrop" on your connection in such unprotected networks.

3. Credit Card Fraud

You are looking through your credit account statement and you find a purchase of Rs. 5,000 which you can’t recall of - could be credit card fraud! This is the most direct form of theft where the thief gains access to your credit card information and uses it for their own expenses or to take out cash advances using your account.  In many cases, the thief may not even need to steal your physical credit card, only the information such as card number and PIN are enough. Here are some first-hand measures to avoid being robbed:

●        Never disclose your credit card number to anyone and never enter your card details on any unknown website.

●        Avoid handing over your card to the waiter at the restaurant and insist on bringing the machine to the table.

●        Avoid Card skimming by visiting better-known ATMs for withdrawing money

4. Unsecure Browsing

It is not that difficult to identify a malicious website when you are equipped with some internet basics and a bit of common sense. Here are some tips:

●        A URL beginning with an ‘https:’ and/or having a green lock symbol to the left of the browser window indicates a secure and protected website.

●        Avoid clicking on a link embedded in an email unless specified by a known sender.

●        A shady looking website with weird content and spelling mistakes is an instant giveaway to being a fraud

5. Phishing and Spam Attacks

You may have seen emails in your inbox bearing the name of your bank. When you open those emails, you might be prompted towards a certain ‘call to action’ redirecting you to a website on the pretext of PAN verification, KYC or any other identity verification. This website (which may look like it belongs to the bank) may ask you of your account details. Stop right there, could be a trap! When you enter your details there, consider them compromised. The best way to identify real from fake is from certain telltale signs. For example, if you get an email from a sender named ‘ICICI’, check the domain (eg:<icici@icici.com>). If it’s a legitimate mail, the domain will belong to the original website, else it will be something like <icici@abc.com>, which is clearly fake as banks won’t send via a random domain.

6. Trading on the Dark Web

This discreet area of the www is an underground hotbed of criminal activities mainly because it is not accessible by the search engines, making it incognito. This is the marketplace where all the stolen data such as your credit card number, name, etc. are assembled and sold by the hackers. The dark web has restricted access and only with certain browsers, in case you are wondering!

Once they have the information they are looking for, identity thieves can ruin your consumer credit score and the standing of other personal information. In order to avoid damage, it is essential you stay informed and alert, always!

3 Main Reasons to Monitor Your Business Information Reports

What is a Business Information Report (BIR)

Business information reports provide you with a wide range of credit data on your potential customers, partners, and suppliers. They allow you to research key business information of your clients and business partners such as contact details, sales figures, size, products/operations, credit summary, Uniform Commercial Code filings, fictitious business names, and payment and collections history. In addition, it contains information on judgments, tax liens, and bankruptcies.

Benefits of BIR

1. Manage Uncertainty and Risk in Business

Business information report consists of crucial details such as business registration, legal form, date when it came into existence, key owners, address, etc.  The business information report also provides details such as the submission of financial data, balance sheets, and ratios to evaluate financial strength.  All these details build an image of the business which can help you in your credit risk assessment.

2. Enable Better Credit Decision

To evaluate a business partner, the first aspect you need to check is their financial situation. You need to be sure of your partner’s creditworthiness to ascertain their ability to pay for the services received. Business Information report provides significant legal events in the timeline of your business partner such as changes that occurred in the past involving changes in the company management. Instability can reveal a few facets of the company. If the business has had significant or repeated defaults under their name, you may rethink before providing credit to them.

3. Monitor Company status

When Business information services are combined with a business credit report, it can open a whole new dimension. When it comes to your regular client, it is crucial to practice due diligence and monitor changes in the company situation that could affect your business. Keeping up to date can prevent critical events, such as a customer becoming bankrupt, or a supplier risking interruption in the production chain, a change of ownership, etc. Monitoring allows you to understand if a business partner has changed the company information.

CRIF Business Information Report

CRIF has developed a well-defined approach to business information using a scenario where decisions and risks are based on a complex and robust framework of value-added information, dynamically updated and revised. This means the creation of an ecosystem where data are linked to each other and can be transformed into information specific to different evaluation processes.

SkyMinder is the CRIF platform for Business information that enables the global market to access commercial risk data and take better business decisions on worldwide companies. CRIF’s SkyMinder business information reports enable you to:

·         Fetch business credit information report of businesses based in 230 listed countries

·         Make an efficient decision by referring the high-quality local data

·         Control Bad Debts and reduce collection costs

·         Gain better market insight by assessing your business partner’s risk level using credit rating and opinion.

·         Analyze the financial strength of a company by looking at their financial data, balance sheets, and profit & loss statements.

·         Stay updated on the financial status of a partner company

Visit the CRIF website to learn more about International Business Information services and address your security needs.

Becoming a loan guarantor? Things you should know before you become one

It is a little difficult to say no to your close relative or friend when they ask you to be their loan guarantor. Loan guarantors are not co-borrowers but guarantors who formally assure the bank or lending institutions that the borrower will repay the loan amount on time, abiding by the rules. The credit worthiness of a person allows one to be a loan guarantor, but it does not mean that the borrower's creditworthiness is being questioned, often it is a formality that needs to be followed as a part of Credit Risk Management in Banks, in case of a massive amount. It might be a risk at times as you can never be too sure of somebody's credit behaviour which is why always think before you say a yes and ensure nothing is at stake.

Below are a few questions that we will answer to help you decide if you want to be somebody's loan guarantor or not:

When should you say a Yes?

As we said, becoming somebody's loan guarantor depends on one's own discretion. One thing you should never forget to consider is the borrower's financial ability and capacity to repay the loan.

When should you say a No?

If you come to understand that the bank wants you to be a guarantor because they do not trust the borrower's financial capabilities, then take a closer look at the borrower's papers and credit history to avoid any financial distress on you.

Will your credit score be affected?

Credit Score plays a very crucial role when it comes to any kind of financial activity, even when you become a loan guarantor. While the borrower is expected to have the required credit score needed for personal loan, as a guarantor, your credit score is also at stake. Your credit score will be affected when there is a delay in paying the EMIs or any kind of default. The ratio in which your score is affected is influenced by the latest credit scoring model followed by the respective credit bureau. Before becoming a guarantor make sure your credit score is strong enough to take a hit if there is any irregularity in the repayment of the loan by the borrower.

Will your eligibility for loan get affected?

Becoming loan guarantor means you've increased your liability too. The lenders will then limit your loan amount or not give you a loan at all, so if you are sure that you wouldn't need to take a loan soon then say a yes to becoming a guarantor.

What will be the tenure of the loan?

Becoming a loan guarantor means you are tied to a loan till the time it is fully paid back, which also means it will be a liability. Make sure the loan tenure is not too long to avoid being deprived of any financial assistance you may need in the future.

What are the legal actions that can be taken by the bank against you?

You may have to pay the amount if the borrower goes absconding irrespective of the fact that you are not the co-borrower there will be legal actions taken against you too. It is mandatory to read and check every document that you sign while you become the guarantor.

Once you become a loan guarantor, it is not easy to withdraw. Keeping that in mind we have answered most of the questions that might come in your mind while agreeing to become the loan guarantor, making sure you take a decision after understanding every term and condition and it does not affect your finances negatively

Looking For A Loan To Buy Your Dream Car-Factors To Foresee Before You Apply For Loan

“We don't pray for the love we just pray for cars”

Buying a car with the latest features or choosing a swanky one can at times be heavy on our pockets despite having it all planned. Car loans are like the catalyst for buying our dream car. However, not everyone spends enough time researching and comparing car financing schemes.  If you are planning to buy a car that you have wished for then we have a list of things that should be on your checklist before you hop on to a decision or before you apply for a car loan, making things uncomplicated.

Choose your car wisely:

When you plan to take a car loan, make sure you choose your car wisely. A car that suits all your needs and requirements should be the deciding factors of the choice you make. Research about car category (Sedan/SUV/Hatchback) and fuel type (Petrol/Diesel/CNG). Choose the one which suits your budget as it is a big expenditure that might be affecting your finances for the upcoming months.

Credit History and Credit Score:

Your credit history and credit score are the deciding factors for your eligibility to get a car loan. Before you apply for a car loan, it is mandatory to make sure that one has a good credit history and fulfills all eligibility criteria. Banks approve or reject loan applications based on your entire financial standing, starting from your monthly salary to your ability to repay your debts to your credit activities.

So, the foremost step is to visit the website of an RBI-approved credit bureau in India like CRIF and check your credit-worthiness by downloading a free credit report. A higher score means a better chance of loan approval and lower will be the interest rates. One will have a greater probability of approval of the loan if he/she has a score above 700.

The Rate of Interest:

Different banks offer a different rate of interest and it is important to analyze and do a little research to get the best deal. Since the rate of interest can make a large difference in the final cost of the car you want to buy, make sure to choose a deal wisely and not just any prepackaged loan deal.

Down Payment:

Usually, 15% to 20% of the loan amount is the down payment amount that one must pay. Down payment works just like margin money for our loan needs. The higher the down payment is, the lower is the quantum of EMI one must pay every month.

Processing Fee:

Banks charge a minimum loan processing fee for all car loan requests. However, the final calculation of loan processing fee differs from bank to bank. While some banks have a flat loan processing fee, others fix the loan processing fee depending on the amount of loan and a fixed percentage is used to calculate the fee. While comparing the loan processing fee, it is imperative to check other charges like late payment charges in case of a missed EMI of various banks.

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Foreclosure Charges:

Banks charge an extra amount for prepayment of the car loan before the end of the loan tenure. Suppose you want to pay off your car loan in one go, you may have to shell out around 2 percent to 5 percent of the outstanding balance as foreclosure charges. Make a thorough check with various banks about the charges for foreclosing your car loan.

Package Deals:

Car dealers often have tie-ups with various banks offering pre-approved car loans at the car showroom. While pre-approved loans may look very alluring but are often costlier than independent car loans.

Bundled Insurance:

Banks offer clients the option of free insurance as an incentive to taking a car loan. As a borrower, you can also request the bank to offer you a bundled insurance plan to help you be stress-free about it in times of despair.

Buying a car and getting a car loan can be a little grueling but if you do it the right way it may not be as tough as it seems to be. Make sure you get yourself a credit check regularly with CRIF to ensure that you are eligible to apply for a car loan. CRIF provides you a free credit score, once every year.

How to Manage Your Finances And Card Spends During This Festive Season?

‘Tis the season’ is the phrase you’ll generally get to hear in the west when people start anticipating Christmas and it’s really close. In India, ‘Tis the season’ can be chanted all year long with unending festivals for each season. While this is an exciting opportunity for those who never want to stop celebrating life; for the slightly cautious ones, it is a threat to their savings and consequently their credit report. We share some tried and tested tips below which will limit your card swipes while also retaining your credit score.

Set a psychological cap

You must have noticed that when you carry hard cash in your wallet and spend out of it, you are cautious every time money goes out. This is because the transfer of money is visible and you can see your wallet thinning with every outlay. This subconsciously warns your mind to spend less the next time, when you know there’s only a little left. The same is not the case with Credit or Debit card where you tend to compare your spending with your total account balance. The ratio of which is obviously higher than the money in your wallet. You do not realize how much you have lost until the due date comes and you are reminded of your EMIs. What we learn from this human behavior is that it’s in the best interest of your bank balance to go out shopping with limited cash. Or in this age of digital money, you can download an e-wallet on your phone, transfer a small amount to it and spend accordingly.

Define your budget, preferably in advance

This point is in direct co-relation with the one above. When you set a budget, you can spend with the available amount in mind. If you know you have to spend more in the next season, start cutting down your expenses beforehand in order to balance the budget. When it’s festival time, set a budget according to your spending capacity and priority to avoid financial burden in the future. Make it a point to limit your spending within the peripheries of the set amount. The next step of setting a budget is to pre-define it for all major festivals in advance. For example, if it’s October already, and according to your savings, you still have a spending capacity of Rs. 1 lakh for the rest of the year, you can set a budget of spending 10,000/- for Diwali shopping; 60,000/- for Diwali Gifts & Decorations and 30,000/- for miscellaneous with a margin of say 5% i.e. 5000/- more or less. In this way, the fear of overspending or vague expenditures is eliminated and your budget is hugely controlled.

Keep caution while borrowing money

If the festive season is overwhelming and you JUST have to buy that new car on dhanteras, then go ahead with the loan. But always be mindful of your repaying capabilities and do not burden yourself beyond what you can bear. Your lenders are in constant touch with the credit bureaus of India and keep them updated about your every financial move. As such, be conscious of the effects of a loan on your credit score.

Stay updated about the best deals

During all major festivals, there is an enormous SALE going on, especially in the online world. Avail full benefit of this opportunity by investing your time on selecting your products, months or days in advance, and wait till the prices drop down. Push your TV, Phone, Fridge and Oven purchases till the sale as there is a huge discount on electronics and home appliances where you can save maximum money. Many times, when you are ignorant about the dates of an upcoming online sale, you end up buying the same thing at a higher price. It’s only days later that you realize that the same product is now on SALE for a dirt-cheap price. As sordid as it may sound, It’s rather penny-wise to keep a track of these minute details. It could save you thousands of bucks, let alone the tremendous mental satisfaction of having spent a lot less than otherwise!

Believe in the power of Personalized Gifts

As if your personal expenses and the expenses of your family were not enough, you are also expected to gift your friends, and extended family during the festive season. These are times when your budget goes haywire. The best thing to do when you are tight on money is to create personalized gifts. Personalized gifts such as handmade paintings, greetings, sweets etc. are not just high on emotional value but are also easy on the pocket. People actually appreciate if you give them your time rather than your money.

A consideration of all the above points will not just make your festival better but will also show positive changes in your credit report. Visit our website and treat yourself with a free credit score to check your credit health before the festivals begin!