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CAFC Bulletin: Loan Scams

Alert.

When applying for a Loan, always be on the lookout for scam ads which are found through online advertising or deceitful websites. These are designed to look like a legitimate lending institution. Victims who respond to the ads are asked to provide personal information such as a copy of a passport, SIN, driver’s license and bank account details which can result in ID Theft. The scammers then ask the victim to send money to secure the loan and funds are never received. Be very vigilant when someone offers you easy money. Scammers are extremely skilled and often convince people that their loan offer is real.

Warning Signs – How to Protect Yourself

  • It is illegal in most provinces for a company to request an upfront fee prior to obtaining your loan. Do not send funds to secure your loan!!!!
  • Beware of companies offering a guarantee on your loan even if you have bad credit or no credit.
  • If you are asked to make payments via email money transfer, money service business, or pre‐paid credit cards cease all contact immediately.
  • Contact consumer protection agencies and regulators to ensure that the company is a legitimate lender.
  • Advertising through a recognized media outlet does not ensure that the ad was placed by a legitimate company.

If you think you or someone you know has been a victim of fraud, please contact the Canadian Anti‐Fraud Centre at 1‐888‐495‐8501 or report online at www.antifraudcentre.ca

This document is the property of the CAFC. It is loaned to your agency/department in confidence and it is not to be reclassified, copied, reproduced, used or further disseminated, in whole or part, without the consent of the originator. It is not to be used in affidavits, court proceedings or subpoenas or for any other legal or judicial purposes. This caveat is an integral part of this document and must accompany any information extracted from it.