Cases of “advance fee” scams where a victim is asked to pay an upfront fee for products or services jumped by more than 80% last year, with victims losing £711 on average, according to Lloyds.
As living costs rise, fraudsters are increasingly turning to this type of scam to target those struggling financially.
Advance fee scams happen when a victim is asked to pay an upfront fee for goods or services that don’t materialise.
Fake ads for loans, jobs and rental properties are among the most common tactics currently being used by criminals.
Reports of loan fee scams have more than doubled over the last 12 months, up by 105% compared to the previous year, with the number of cases continuing to rise sharply. The average amount lost by victims last year was £214.
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Victims will typically reply to an online advert for a “fast loan” from a company they have never heard of, though sometimes the fraudster will try to impersonate a genuine firm.
They will have their application approved regardless of their credit history. Before they receive the loan, they are told they must pay an upfront fee by bank transfer.
Once this fee is paid, the fraudster may even ask for further payments. Eventually, the victim does not hear from the company again and the loan is never received.
Liz Ziegler, fraud prevention director at Lloyds Bank, said: “Fraudsters…
