how do loan sharks target people they give loans to?
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Money lenders who aren’t authorized by the government are known as loan sharks as they are breaking the law. Loan sharks often work from home, charge very high rates of interest and don’t give you much paperwork to confirm the arrangements they’ve made with you. A loan shark usually has lots of customers and lends money like a business, but their lending is illegal. Loan sharks often take other illegal action to collect the money they’ve lent you, such as threatening violence or taking away your credit cards or valuables. In extreme cases, they’ve been known to force non-payers into prostitution and drug dealing.
Loan sharks operate by offering victims short-term loans, then increasing their repayments arbitrarily and adding extra costs, often with threats of violence if money is not repaid. Such lenders are also targeting their victims online, victims often meet the loan shark via social media platforms such as WhatsApp, Snapchat and Facebook, or through dating websites. Criminals are also creating their own WhatsApp and Facebook groups that appear to be for local communities but are actually ways to maintain control over their victims. You’d be encouraged to get a loan from them but you’d never know there is more to it than meet the eyes.