Loan scams exploit urgency. The pitch often promises approval despite credit history, then introduces a fee that must be paid before funds are released. After payment, the loan never arrives—or the victim is pushed to pay again.
Warning signs
- Approval is “guaranteed” before reviewing an application.
- You must pay an insurance, processing, or security fee before funding.
- Payment is demanded by gift card, cryptocurrency, wire transfer, or another hard-to-reverse method.
- The caller pressures you to act immediately or keep the transaction secret.
- The lender’s physical address, licensing, and contact information are missing or inconsistent.
Verify independently
Do not rely on a phone number or link in the solicitation. Use official state regulator resources to check whether a lender must be licensed where you live. Inspect the full web address and the company’s legal name. Scammers can imitate a known lender’s brand, caller ID, or email design.
If you already paid or shared information
Contact the payment provider quickly and ask whether the transfer can be reversed. If bank or card details were shared, contact the financial institution using the number on the official statement or card. Monitor accounts and credit reports.
Keep messages, receipts, phone numbers, and screenshots. Report the incident to the FTC and the relevant state regulator. Acting quickly cannot guarantee recovery, but it improves the chance of limiting further loss.