Fraudulent Lenders and Loan Scam

1. Title: Fraudulent Lenders and Loan Scams A loan scam occurs when a fraudulent company disguised as a legitimate lender resorts to fraudulent schemes, in an attempt to collect money from people. Increasing forgery of fictitious money lending companies leads people to seek countermeasures. Awareness of their strategies serves as a great antidote to fraudulence. Types of Loan Scam and How to Identify Them? Phishing Scam: Fraudulent lenders often use emails as a means of forgery. They imitate the domain name of a legitimate company, pretending to be them, in an attempt to fool people. Sometimes they disperse malware disguised as links via emails and exploit others' personal data for their profit. Loan Fee Scam: In an advance fee loan scam, scammers offer to lend money at a very low interest, and in return, they ask people to pay a processing fee or application fee in advance. They often set offers that sound too good to be true regardless of an individual's credit score. They even target individuals or businesses with poor credit scores. Unlike scammers, a legitimate organization asks for fees only after the loan’s approval. Fake Check Scam: In a fake check scam, a fictitious company asks you to deposit a check into your account and then wire the money back to them. Sometimes they deceive online sellers by pretending to buy their products. They generally send the sellers fake proof of their payment and claim to have overpaid them. They then ask them to refund the money. Debt Settlement Scam: Fraudsters pretending to be a debt settlement company contact debt-ridden people and claim that they can help reduce or cancel their debts. They promise to negotiate with the creditor on your behalf, demand money in advance, and then disappear with the money. Donation Scam: People's generosity and the desire to help others foster the strategies of donation scams. Certain unethical, fictitious organizations and people exploit some people's innate desire to help others for a personal profit, by posing as genuine donations, despite their fraudulence. Government Agency Scam: Sometimes scammers disguised as representatives of Government agencies contact people and ask for personal information and claim that they might face severe consequences if they do not cooperate. It is advisable to hang up on

2. these calls, as government representatives never contact you via email, text, and social media. Summary: In the period of digital advancement, loan scammers linger everywhere they see an opportunity. Ignorance may lead to a huge financial crisis for an individual or business. Here are some things to know.