Loan fee fraud is when you pay an upfront fee for a loan or credit you never receive.
Christmas Retail therapy – a loan fee fraud-(sters) Christmas bonus!
This scam made up 1 in 8 (12%) of all scam reports last December to the Financial Conduct Authority.
This Christmas, 34% of people under increased financial pressure from the pandemic plan to spend more than ‘normal’ years according to a survey.
Retail therapy may turn people to credit cards, buy-now-pay-later schemes and loans this festive season increasing the risks of fraud.
The average loan fee fraud scam costs its victims £220!
66% of people feel confident they could spot a loan scam, but 28% would consider paying a fee first to get a loan.
What’s worse, those used to buy-now thinking (25-34-year-olds) are the most likely to pay a fee and increase their risk of being scammed.
Are you at risk?
The FCA asks:
- Are you being asked to pay a fee upfront?
- Feeling pressured to pay quickly?
- Are you being asked to pay by an unusual method?
If ‘YES’, make sure that you are not becoming a victim of loan fee fraud!
Being scammed is bad but, being scammed at Christmas is the pits!
Fraudsters exploit vulnerable people so help yourself, friends, and family to spot the warning signs this festive season.
Unsure what else to do?
Before agreeing to a loan, check you are dealing with someone authorised to provide credit via the FCA Register.
This blog is based on a press release on the FCA Website.