Crypto

The dangers of lending on the dark web – DailyGeek.org

There is a saying that money is the root of all evil. Well, money itself can be good by definition, but there are many difficulties in this world associated with its lack.

When times get desperate, it might mean heading to the nearest bank, hat in hand. However, for many people, getting a loan from traditional financial services is not possible. Often because they do not comply with the rules of responsible lending. So, when you desperately need money to get out of a dead end situation and no legitimate bank will give it to you, disreputable money sources become the only alternative.

There have always been pawnshops that are not so picky about eligibility for credit. They will lend money to almost anyone, but are much stricter with the terms of their collection.

Such people are called “usurers”, and their victims are many. The dark web is no different from the real world in this respect. There are people who need money and they will offer it, but at a price.

The term lenders use on the Dark Web is called “Dark Web Financial Services.” This reflects the real world term, legitimate financial services. As you might expect, there are plenty of reasons why you shouldn’t mess around with these outfits, but let’s look at the issues one by one.

99% fraud

The most obvious problem is that most things on the Dark Web that offer something that seems too good to be true are probably scams. If someone is willing to lend you money, without the hassle or on terms that are attractive to you but not to them, this is a sign that you may be dealing with a scammer. What would they deceive a desperate, broken man? We could offer many possibilities, but personal information, the little money you have (down payment), or the theft of something you offer as collateral, are just a few of the possibilities.

Impossible conditions

Disappointment

As is the case with many real loan sharks, even if you have been lent money, this may only be the beginning of your problems. When money is lent in the legal financial sector, there are restrictions on what the lender is allowed to do. They cannot charge higher interest than the rules allow. They can’t just collect when and how they want.

If you take money from a dark web loan shark, you have neither the protection nor the guarantees that come with banks and legitimate lenders.

This means that even a small loan can quickly turn into a liability that you have no reasonable prospect of repaying. It is better for the loan shark never to repay the principal amount of the loan. This means that you will only pay interest for as long as the shark can chain you up.

So think carefully about these terms, they can be the equivalent of indentured servitude. This is even if the lender adheres to its terms!

Extortion and violence

How crime happens on the dark web

Extortion is getting something you want by using threats to get what you want. Dark web lenders usually require you to provide your real name, address, and some proof that you are who you say you are. For example, a photo of you holding your passport and holding a daily newspaper in your hands.

However, you cannot expect the same courtesy from a lender. You will never know who they really are. This creates a huge power imbalance between you and the lender. A legitimate bank is a well-known organization. You know who the CEO is, where the buildings are, and everything else is transparent and public. All you know about your dark web financier is that he knows who you are.

Once they have you in debt and they know who you are, there are a million ways to manipulate. Hire people to track you down, have hackers dig into you for blackmail purposes. Even the debt itself. Anyone who borrows money from a faceless pawnbroker on the Dark Web is unlikely to get a good night’s sleep again.

Identity theft

Online Identity Theft Fraud

Identity theft is the bread and butter of the dark web. If you have the money to do so, you can buy people’s lives in the form of passport scans and ID cards, birth certificates. You name it, you got it. This means that the purpose of identity theft is probably not the main reason why someone would engage in a credit scam or loan sharking operation. However, if someone asks you for scanned ID documents and asks a bunch of questions about your personal life, they can do a lot of damage to that information. In the legal world of lending, there are laws that restrict, for example, what a bank can do with your personal data. If they sell it to a third party, it could result in huge fines and other legal penalties. When you put this information into the hands of a dark web stranger, you reap what you sow.

When is Desperate Too Desperate?

It is easy to sympathize with someone who is going through difficult financial times. Most of us fall into despair at one time or another. However, there are many alternatives that you can consider. If you have problems with legitimate creditors, there are many remedies available. You can apply for restructuring, get debt advice, or get protection by filing for bankruptcy. Talking to a licensed debt consultant is a good solution. Applying for social assistance in countries where it is allowed is another possible way to cope with difficult times. You can also set up crowdfunding campaigns like GoFundMe to get help from the online community. Getting into debt with anonymous and potentially dangerous strangers seems like going too far.

Do you still think dark web credit is a good idea? Would you risk it? Let us know about it in the comments. Finally, we would like to ask you to share this article online. And don’t forget that you can follow DailyGeek on Facebook and Twitter. Thank you!

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