Out of all the different types of scams, lending scams might just be the most insidious. These types of scammers fool their victims into thinking they’re a legitimate financial institution, and then charge the victims exorbitant fees, steal their personal information or both. This would be devastating to anyone, but it’s especially painful to people who have gone through the stress of filling out a loan application and who could really use that loan to finally reach their goals.
The good news is, like other types of scammers, most lending scammers use the same tactics on their victims. When you know the signs of a lending scam, you’ll be able to avoid these scammers and protect yourself from fraud.
Here’s how to protect yourself from lending scams
What exactly are lending scams?
Lending scams are schemes designed to trick individuals into paying money upfront for a loan, usually a personal loan, that never materializes or comes with predatory terms. A scammer often poses as a legitimate lender, and they usually target people who have had financial troubles who might have trouble getting loans from other credit unions or banks.
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