The Internet is rife with payday loan scams. The worst people who operate fake loan websites are out to steal your information for identity theft or credit card fraud. Loan companies may ask for your bank account information, address, or social security number in the course of the loan application process. The last place you want this information is in the hand of a fake online loan company.
Another reason someone may operate a fake payday loan website is to collect your information to sell you a product or send you marketing material. While this misuse of your data is less nefarious than bank account fraud or identity theft, it is still something you want to avoid at all costs.
Luckily, there are indeed legitimate payday loans online available. Finding an actual loan company you can trust with your data will require a bit of research on your part before handing over your sensitive information to just anyone. Search the company name online and verify that there are no reports of anyone else being scammed. If a company has been around awhile, they may have a presence on a consumer review website. This is usually a good sign because it means that the company is not a fly-by-night fake website that will take your information and run without providing you an actual service.