A growing number of desperate clients in Jinja City have fallen victim to an online lending platform scam, which operates under fictitious offices and promises quick loans with misleading terms. Victims, who preferred to remain anonymous, revealed that the scammers initially offer small loans ranging from Shs15,000 to Shs50,000. However, after repaying the initial loan and possibly a second installment, victims receive SMS notifications praising their creditworthiness and offering significantly higher borrowing limits, ranging from Shs1.5 million to Shs50 million.
The modus operandi of these scammers involves demanding additional application fees, citing technical issues with their system, and promising swift payouts. Despite victims complying with these demands, the scammers disappear without a trace. The alleged scammers operate under names such as “One Loan” for small loans and “Credit Loans Uganda” for larger amounts, using fictitious office addresses and misleading contact information.
Efforts to locate the purported head office and branch in Kampala have proven futile, as the addresses provided do not exist. Even the individuals listed as credit officers could not be reached for comment. Investigations have revealed that the companies behind these scams are not registered with local authorities, indicating fraudulent activity.
Authorities, including the Principal Jinja City Commercial Officer and Kiira Region Police Spokesperson, have urged residents to verify the legitimacy of companies before engaging in financial transactions. The lack of trading licenses for these companies underscores the need for vigilance to prevent further exploitation of vulnerable individuals.