Spotting Personal Loan Scammers & How to Handle Them

A loan scam is when someone offers you a loan that seems too good to be true. They may ask for personal information like your name, address, or bank account number.

They may also ask for money upfront. If you are contacted by someone who asks for this information, it is important to be careful. This is because it is possible that you are dealing with a personal loan scammer.

This article will discuss how to spot a personal loan scammer and what to do if you think you've been scammed.

Personal Loan Scammers tend to target people in difficult financial situations or who have been turned down for loans from traditional lenders, such as banks and credit unions.

They may reach out to you through email, text message, or phone calls, posing as a financial service representative or as an employer who needs to verify your bank account information.

Personal Loan Scammers will often ask for personal information like your name, address, date of birth, social security number, and bank account number in order to complete

There are a few things you can look out for when it comes to personal loan scams. If something seems too good to be true, it probably is. Be wary of lenders who ask for upfront fees, especially if they request these funds before you have even been approved for the loan.

Also, be suspicious if the lender does not seem interested in your credit history or asks you to provide false information on the loan application.

How to spot the loan scam?

When they don't care about your credit history:

Credit history plays a big role in a lender's decision to issue a loan. If the scammer doesn't ask about your credit score, it is likely that they just want your money and have no intentions of repaying you.

They don't seem interested in you or your case:

Legitimate lenders want to make sure that you can afford the loan and will be able to repay it. If the lender seems disinterested in your case or doesn't ask any questions about your finances, it is likely a scam.

When they ask for personal information upfront:

Lenders should never ask for personal information like your social security number, bank account number, or date of birth unless they already have a confirmed lending relationship with you. If the lender has not verified your bank account information and wants to transfer money into your account before you even get the loan, it is likely a scam.

When they ask for loan fees upfront:

It is common for lenders to charge an origination fee, which is a percentage of the total loan amount. However, most legitimate lenders will not ask for this fee until after you have been approved for the loan. If the lender asks for the fee upfront, it is likely a scam.

When the lender tries to pressurize you:

No one should feel pressured into making a decision about taking out a loan. If the lender is trying to rush you or make you feel like you have to take out the loan, it is likely a scam.

When the lender has no physical address:

If the lender does not have a physical address, it is likely a scam. Genuine lenders typically have an office where you can go and meet with them in person.

When a lender asks for instant payment:

If the lender asks you to make an instant payment through a money transfer service like Western Union, it is likely a scam. Genuine lenders will not ask you to use this type of service.

What to do if you are scammed?

If you think you have been scammed, it is important to take action right away. You can file a complaint with the Federal Trade Commission (FTC) or your state Attorney General's office. You can also contact your local police department.

It is important to remember that you are not responsible for paying back the loan if it was a scam. If you gave money to the scammers, do not try to go after them yourself. Report the crime and let the authorities do their jobs. Or also, you can try these:

Contact your bank immediately:

If you gave the scammers your bank account information, contact your bank as soon as possible and ask them to shut down your account. This will help protect you from any further damage.

Change your passwords:

If you gave the scammers personal information like your social security number or date of birth, change your passwords for all of your online accounts as soon as possible. This will make it more difficult for scammers to access your accounts.

Contact the police:

If you have given the scammers money, do not try to get it back yourself. Give them false information or lie if they call again and let the police handle it from there. You can also contact your local consumer protection agency for advice on dealing with scammers.

What to do if you think your personal information has been compromised?

Protecting your personal information can be challenging. Here are some steps that you can take to reduce your risk of identity theft:

• Order a free copy of your credit report at least once per year by visiting AnnualCreditReport.com.
• Set up account alerts with your bank and credit card companies so that you are notified anytime there is activity on your accounts.
• Create a strong password for all of your online accounts and change it regularly.
• Do not share your personal information with anyone unless you trust them completely.
• Be cautious about clicking on links or opening emails from unknown sources.
• Update your software with security patches as soon as they are available.
• Be aware of what information you are sharing publicly online and how it could be used to target you if stolen.
• Keep all of your software up-to-date, especially browsers like Google Chrome, Mozilla Firefox, Edge, and Safari. Visit the "Get Help" area of your browser to learn how to update it.
• Ensure you have a reliable anti-virus program installed on your computer and make sure all of its software is up-to-date. If the anti-virus software is not up to date, it will not be able to block any malicious files from infecting your computer.
• If you think you have been a victim of identity theft, learn what steps to take at IdentityTheft.gov.
• To file an identity theft complaint, contact the Federal Trade Commission (FTC) online or call 1-877-438-4338 (TTY: 1-866-653-4261). You can also contact your state Attorney General's office.

The Conclusion:

Spotting personal loan scammers can be tricky, but there are a few things to watch out for. Be wary of lenders who ask for an instant payment or who do not have a physical office. If you think you have been scammed, report it to the FTC or your state Attorney General's office right away. Protecting your personal information can be challenging, but following a few steps can reduce your risk of identity theft.