There has been a significant increase in the number of fraudsters offering fake bank funds and/or online credit through social media networks such as Facebook or email. These funds offer claims that fraudsters work as private individuals or on behalf of big U.S. banks at very attractive rates. Victims are usually members of a community, social, religious, and intimate group. The fraudster finds a way to get into this group and offers investment opportunities to captive audiences with high or secure returns. All he has to do is convince the leader or the influential member. Fraud can be detected for a while and gradually debts start in your name.
Indication of a fraudulent lender
When the lender is not worried about your payment history
One of the indicators is that the lender may not want to check your credit report before giving you money. Reputable lenders make it clear that they need to look at your credit history before approving any fund. They need to know if you have a history of paying bills on time and in full, which will give them some reassurance that you will be honest in repaying the loan. Conversely, fraudulent businesses are not interested in making timely payments. In fact, they seek out high-risk borrowers who are lagging behind in credit payments and, consequently, their high late fees and penalties. Make sure you are working with a lender who is interested in your past financial history.
The lender is not registered in your state
Federal Trade Commission (FTC) lenders and fund brokers must be registered in the states in which they do business. If the lender you are interested in does not list the registered states, you can deal with the debt scandal. Check the lender’s website to verify the list of states that do business legally. If you can not find such a listing, contact your state’s attorney general’s office for further verification. You can also contact your state banking department or financial regulation department to determine if the company is operating legally in your place of residence. The registration check is an important step in ensuring that you are working with a reputable company, separating frauds from legitimate businesses.
If the lender is forcing you to act quickly
Do not fall for an urgent request. A feature of personal advance scams is that the offer expires quickly, giving you an immediate deadline to sign up for a fund – perhaps even the next day. Lenders who use such high-pressure strategies are not well off. This is a ploy to make hasty decisions. You should never pressurize yourself to go ahead with any funds. Legal lenders may set a time limit for accepting a loan offer, but you may not have weeks or days to decide whether to accept the loan.
The lender requested your business
Legitimate lenders do not request business by making a cold call to potential customers, sending them letters, or coming to their homes. In fact, according to the FTC, U.S. it is illegal for companies doing business to call potential borrowers and ask them to make payments before issuing a loan or credit card. If a lender approaches you first, either in person or online, they may be a fraud trying to get your confidential banking information. Do not succumb to their hard sales. If the lender approaches you, it should be because you have previously contacted them by online inquiry, by phone call, or by visiting a bank branch.
The lender does not have a physical address
Another way to find out if a lender is legitimate is to check if the business has an actual address. Confirm that this is their business by calling the phone number on their website and verifying their address in the mapping software. This is the P.O. Box or PO Address Box Service, lender scammer. Find a lender whose physical address is listed somewhere on their website.
The fraudster finds a way to get into this group and offers investment opportunities to captive audiences with high or secure returns. Scammers can try to give you a low-cost advance instead of hundreds or thousands of dollars in fees. If you fall into the high-risk category, it is important to be vigilant about any company that promotes a loan product that looks very good to suit your situation. If in doubt, check to see if the company is licensed in your state or contact your state attorney general.