Canadians lost $7 million to criminals in loan scams in 2021, which is more than double the $3 million that was lost to loan fraud in 2020.
One of the most popular scams involving loan fraud is the advance fee loan scam, where thieves ask you to pay in advance to secure a loan and it never materializes.
“I just really wanted to help my family. It’s hard with the war and the food shortages and gas shortages. It’s just a very hard time,” said Sergiy Polishchuk, of Richmond Hill, Ontario.
Polishchuk wanted to send money to his father and other relatives in Ukraine to help them stay safe, buy supplies and to try and avoid the conflict that has overtaken the country.
Polishchuk also wanted to send money to help pay for a tombstone for his grandmother’s gravesite.
“This is a picture of my grandma. She has passed away and that’s a picture of the gravestone we plan to get for her,” said Polishchuk.
Polishchuk went online and found a loan company that agreed to lend him $10,000, but he was told he had to make an advance payment of $1,450 for insurance to secure the loan.
After he did that he was then told he was approved for a $20,000 loan, but he needed to send another $1,450 in insurance fees.
After Polishchuk did that they said he was then approved for $35,000 and they wanted another $1,550, but he refused and asked for a refund.
The loan never materialized he lost his $2,900 and the company stopped returning his calls and…
