Risk Level: Critical
Loan Scams: Beware that offer that regardless of credit history you'll be approved!!
The scammer sends you an email or letter, or you respond to an advertisement on tv, radio, newspaper, magazine or online. The ad often uses the names of large, reputable and well-recognized lenders. To respond to the advertisement, victims are directed to call a "third-party consultant" who solicits application information including social security numbers. During this telephone call, the "loan" is always approved.
The "third-party consultant" then faxes a loan package to the victim, or directs the victim to a website to enter the information. The package includes a request for bank account information.
Finally, victims must wire a required advance payment or a deposit through Western Union or Money Gram to the consultant. The victim never obtains a loan, and the scammer disappears with the application fees and down payments.
Often, advance-fee loan sharks claim that their fees will go to a third party for credit insurance or a related service. Sometimes, they even fax materials using stolen or forged logos and letterheads from legitimate companies. The materials are fakes, according to enforcement officials, and the contracts the scam artists ask consumers to sign are worthless. Adding insult to injury, some scammers have used the information they collect from consumers to commit identity theft.
EXAMPLE:
From: ALLEN FINANCIAL INVESTMENT [ ALLEN@ukonline.co.uk ]
Subject: LOAN OFFER AT 3% INTEREST RATE!
Dear Sir/Madam,
I am Mr. Chukuma Doller ,a representative of Allen Finance Investments,a certified loan organization that offers loan to individuals & co-operate bodies who need loan for small scale businesses,personal investments for just 3% interest rate.We give out local and international loans to people all over the world.We give out loans via online account transfer to what ever country you are in.Our organisation is not a bank and we do not require much documents but just honestly and trust.We deliver loan to our applicant within 24 hours of receiving your application form.If interested,Kindly Contact me vian email: chukumadoller09@yahoo.com.hk
FULL NAME,FULL CONTACT ADDRESS,OCCUPATION,HOME PHONE NUMBER, CELLPHONE NUMBER,MARITAL STATUS,SEX,BANK NAME,AGE,TOTAL INCOME, AMOUNT NEEDED AS LOAN,LOAN DURATION.
Yours
Faithfully,
Mr.Chukuma Doller.
NEVER enter your social security number, credit card, bank account details
The links contained in emails can be faked .
Legitimate offers of credit do not require an up-front payment.
Never send a payment to an individual for a loan;
Don't wire money or send money orders for a loan through Western Union, Money Gram.
Independently verify the company.