Loan scams are widespread because there are a lot of people who need extra money. The gig economy combined with financial problems resulting from COVID-19 has created a huge demand for loans. However, loan scams have also increased. According to the Federal Trade Commission, consumers lost $1.9 billion in fraudulent loans in 2020. 

If you are one of the many people who have fallen victim to loan scams, don’t let the fraudsters get away with it. Acting quickly is important because perpetrators of scams work fast and can change their identities. Seek guidance from professionals at Scam Survivor who can track down the loan scam artists and retrieve your money. 

Types of Loan Scams

Loan scam artists have the same objective in mind–to get people to pay fees or provide information. They take the fees without giving the loan or use the information to get into people’s bank accounts or commit identity theft. Loan scams take several forms: 

• Loan fee scams
• Student Loan forgiveness
• No credit check 

Almost all loan scams involve asking for a fee for services upfront. This should be a red flag. Those who provide loans charge a fee but this is not usually the first step. In addition, scam artists will often ask for unconventional forms of payment, such as money orders. 

Frauds often advertise appealing but impossible-sounding services such as student loan forgiveness or no credit check. Student loan forgiveness is a hot topic, but the popularity of the issue can be bait used by fraudsters. Additionally, claims of no credit checks seem unrealistic. Lenders want to know they will get their money back, and it is logical they will look at credit history. 

Red Flags for Loan Scams

Be suspicious if of any lender who does the following:

• Does not ask about credit history 
• Wants to be paid fees through unconventional ways (pre-paid credit card or money order)
• The lender does not show a real address
• The website is not secure
• Loan acceptance is quick and guaranteed
• There are no terms and conditions to sign
• Fees are not described in detail 

People who are targeted for loan scams tend to be those with a tainted credit history. Therefore, they may be thrilled to hear that there will be no credit checks when they apply for a loan. This seems ideal, but it doesn’t make sense. Why would a lender not check the credit history of someone they are going to loan money to? This should be a red flag immediately. 

The best way to avoid loan scams is to check the information carefully. There may be an address on the website, but if GoogleMaps doesn’t confirm it is an actual place, then that is enough reason to avoid the lender. Having no terms or conditions to sign and approval that is guaranteed just would not happen with a legitimate lender. 

Have You Lost Money in a Loan Scam? Contact Scam Survivor

Few things are more depressing than to get ripped off by a loan scam when you are already in need of money. Don’t be overcome with a feeling of hopelessness. Scam Survivor experts are trained to locate these kinds of scam artists, stop them in their tracks and return money to clients. 

Although there are a multiplicity of loan scams, fraudsters tend to use similar tactics for tricking people and getting money. Experts can identify certain patterns and have data technology that can locate the true identity of fraudsters and return funds to clients. Contact Scam Survivor today and we can help you get your money back from a loan scam.