The bank is on the alert as this type of fraud appears to be on the rise and could result in its customers giving away hundreds of pounds by accident. Loan scams occur when someone is asked by a scammer who is pretending to be a legitimate lender to pay an upfront fee for a loan. This type of fraud often appears as an online advertisement for a fast loan which attracts people desperately looking for money.
Victims are commonly contacted by criminals after searching online for a loan and entering their contact details onto a website they believe to be legitimate.
After this, the fraudster usually impersonates a representative from a genuine company and sends over documentation which looks accurate.
Once the victim is approved for this “loan”, the scammer will make up a reason why an upfront payment will need to be completed for the person to receive any money.
After an initial payment, the fraudster usually asks for more money until the person they are targeting begins to get suspicious.
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In its advice to customers, Lloyds shared the common reasons criminals give to trick people into giving away their cash.
These include payment release fee and payments to verify someone’s identity during a transaction.
Criminals will also ask for people to pay loan company costs and processing fees to continue to appear legitimate.
With victims now losing around £200, Lloyds is sounding the alarm that…
