The lender may be real, but the loan is a scam

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Best Deals Bureau - BBBNashville, TennesseeBBB scam tracker receives reports of scammers posing as legitimate loan providers. These bogus lenders guarantee a quick loan with no upfront fees. But victims who provide their banking information to crooks find themselves in the negative.

How the scam works

You receive an email announcing a secured loan. The message displays the logo and contact details of what appears to be a legitimate loan company.

Before making the offer, you research the business online to determine if it is trustworthy. You find that the name and contact details match a legitimate business, then you proceed with the loan.

Once you accept the loan, the “lender” takes your personal banking information and deposits the money into your account via a check. Then they require you to purchase insurance for the loan before the check is officially cleared. Unfortunately, the loan check turns out to be a fake, which victims often don’t realize until after paying the “insurance”.

One victim told BBB: “The money will be available the next day, but it will then be rejected by your bank three days later. These scammers know that consumers are increasingly aware of phishing scams, so they are using a business identity that can be easily verified online. This allows them to gain the trust of the target and gain access to their bank account.

How to protect yourself from employment scams:

  • Avoid unsolicited loan offers. Scammers use quick money offers to lure you in, don’t fall for the trap. Whether they’re contacting you by phone, email, or text, or sending you loan offers by mail, approach all unsolicited offers of money with caution.
  • Expect a credit check. These scams often prey on people who may not easily qualify for a loan. No legitimate lender will give you a loan without performing a credit check.
  • Make sure the business contact information matches the email sender’s information. Brand IDs can easily be copied and included in the body of an email, so the most important information for a consumer to verify is the sender’s email address. The domain of the email address is usually the domain of the official website and should be free of random letters or numbers.
  • Research loan providers before accepting an offer. When dealing with an unfamiliar company, don’t just verify that they are legitimate by searching for their name online, as you might be missing out on surprising information. Check out ratings and reviews to see what others are saying and search for a BBB company profile.

For more information

If you’ve spotted a scam (whether or not you’ve lost money), report it to BBB.org/ScamTracker. Your report can help others avoid falling victim to scams. Find more information about scams and how to avoid them at BBB.org/AvoidScams.


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