Instant Loans Prone to Fraud

The newspaper Keskisuomalainen reports that in their own test, seven out of eight companies granted instant 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.

The Consumer Agency of Finland says companies must take responsibility for these abuses, because the system does not provide enough customer security. Agency lawyer Gunveig Planting-Visa says they've received numerous complaints of people using family members' mobiles to steal money.

Companies that grant instant loans say that abuses are fairly rare.

YLE24, Keskisuomalainen