Scam artists design fake websites to look like legitimate lending institutions.
How it Works
The victim thinks they are applying for a loan through a legitimate lending institution, but the fraudster uses the loan application to collect personal information. This can result in identity theft and fraud. The fraudsters will request a fee to secure the loan after a quick approval. The victim never receives any loan money and loses the fee paid upfront.
How to Protect Yourself
Watch for these signs that may indicate you are dealing with a fraudulent lender:
- they ask you to send money upfront
- they offer guaranteed loans, even if you have bad credit or no credit
- they offer instant approvals
- they request payment with unusual methods, like wire transfers, pre-paid credit cards, or gift cards
Always do your own research into the company before giving them any personal information, sending any money or signing any documents.
How to Report It
If you suspect you’re a victim of a loan scam, contact the Canadian Anti-Fraud Centre and your local police or RCMP.
FCNB is responsible for the administration, education and enforcement of provincial legislation that regulates securities, insurance, pensions, credit unions and certain consumer services. If your complaint relates to an area outside of FCNB’s regulated areas, we may refer you to the appropriate reporting agency or organization.