Loan scammers understand that people searching for urgent money may feel pressured. They use that urgency to promote guaranteed approvals, demand advance payments and steal personal information.
The first warning sign is a guaranteed loan before the lender reviews your application. Legitimate lenders normally evaluate information such as income, existing debts and credit history before making a firm offer.
The second warning sign is a demand for payment before releasing the money. A scammer may describe it as an insurance, processing or security fee. They may request payment through a gift card, wire transfer or cryptocurrency because these methods are difficult to reverse.
Third, examine the website and contact information. Misspelled company names, recently created social-media pages and representatives using personal email accounts deserve caution.
Fourth, confirm that the lender is authorized to operate in your state. Contact your state banking regulator or attorney general if you cannot verify the company independently.
Fifth, never provide online-banking passwords or verification codes. A lender may request information needed to evaluate an application, but it should not ask for credentials that provide direct access to your account.
