How To Avoid Fake Loan Providers Business


Special to the town crier

The BBB Scam Tracker is receiving reports of scammers posing as legitimate loan providers, according to a Better Business Bureau press release released this month.

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 email displays a logo and contact details for 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 are for a legitimate business, so you proceed with the loan.

Once you accept the loan, the “lender” takes your personal banking information and deposits the loan into your account via a check. Then the “lender” requires that you take out insurance for the loan before the check is officially cleared. Unfortunately, the loan check turns out to be a fake, which victims often do not realize until after paying the “insurance”. A victim told the 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 attempts, so they are using a business identity that can be easily verified online. This allows them to gain the target’s trust and gain access to their bank account.

How to avoid the scam

To protect yourself from bogus loan offers:

• Avoid unsolicited loan offers. Scammers use quick money offers to lure you in – make no mistake about it. 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.

The office warns people to be careful and beware of “secured” loans with upfront fees. BBB also advises consumers to find trusted lenders in their area by visiting

To report a scam, go to


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