Who: The FTC tracks fake loan and advance-fee scams.
When to use: Use when someone promised a loan but asked for money first.
What to prepare:
- Who contacted you
- Amount they asked for
- What they promised
Go to FTC ReportFraud~5 min
Category: Financial & banking
Fake loan & loan fee scams
How it often plays out
Carlos has bad credit and finds a lender that “guarantees” a $10,000 loan. They say he must pay a $500 “insurance fee” first. He pays; they ask for another “processing fee.” He never receives a loan. Legitimate lenders do not charge upfront fees before you get the money. Real loans are approved first; you see the terms and the money, then you repay. If they want money before you see a cent, walk away.
How to spot it
Common red flags: pressure to act immediately, requests for payment by gift card or wire, offers that seem too good to be true, or unsolicited requests for your personal or financial details.
Do's and don'ts
Do
- Save any ads, emails, phone numbers, or messages.
- Report to the FTC and, if you lost money, to IC3.
Don't
- Send money or gift cards; real lenders do not require upfront fees to release a loan.
- Pay "insurance" or "processing" fees before receiving the loan.
Summary & what to do
Scammers offer loans or credit and demand an upfront "fee," "insurance," or "tax" before you get the money. Legitimate lenders do not ask for payment before you receive the loan.
What to do right now
- Do not send money or gift cards. Real lenders do not require upfront fees to "release" a loan.
- Save any ads, emails, phone numbers, or messages.
- Report to the FTC and, if you lost money, to IC3.
Where to report
Who: The FBI's IC3 handles internet-related fraud.
When to use: Use when the scam was online and you lost money.
What to prepare:
- Website or contact
- Amount lost
Go to IC3~10 min