A typical scam email offers you the chance of a loan at just 3% APR for any purpose you wish.
- Business or company loans
- Personal loans
- Debt consolidation loans
- Student loans
- Mortgage loans
- Car loans
- Investment loans
Any loan you want, anywhere in the world – they can provide it at just 3%
This is clearly ridiculous. The companies that do offer short term loans without collateral charge exorbitant rates (often over 100%) and only inside the UK.
The scammers sometimes use the names of real financial organisations in their emails to make them seem legitimate,
How Does the Scam Work?
- They ask for your personal details, address, credit card numbers, bank account details etc.
- Sometimes they charge you an up-front arrangement fee
- Then they sell your confidential information to other scammers.
Scam warning signs:
- The scammer is willing to fund you without any apparent due diligence.
- The scammer uses a free e-mail services – such as Yahoo, Hotmail or Gmail.
- The scammer poses as an English investor, lawyer or banker but their English grammar is poor and spelling is sometimes ridiculous.
- The scammer insists on payment of a fee or expense up front. Often this is by Western Union or Moneycorp as there is no chance of you getting the money back.
Sometimes they make a payment by cheque and demand you pay their fees immediately (i.e. before the cheque has time to bounce)
Don’t be caught out applying to a fake loan company.
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