Fast loan scam targeting those struggling in the cost of living crisis surges and Lloyds puts out an ‘urgent warning’: Here’s how it works…
- Fraudsters pretend to approve loans and demand cash before paying out
- Victims lose an average of £231 to the ruse
- Reports of this type of scam have risen 90% this year
Desperate Britons are being tricked into losing money in a fast loan scam which has ballooned thanks to the cost of living crisis.
With cases up 90 per cent so far this year compared to first five months of 2021, Lloyds Bank has issued an urgent warning for customers to stay vigilant.
Fraudsters running these ‘advance fee’ scams set up online adverts for fake companies or impersonate genuine firms offering fast loans to trap unsuspecting victims.
It is likely, given rising bills, that those struggling may be tempted by these ads with the offer of short-term solutions.
Scammers approve loan applications and then claim the victim needs to send them cash before they can get the loan.
Applicants who click on adverts will have loans ‘approved’ regardless of their credit history, but are then told they must pay an upfront fee by bank transfer before receiving the money.
Once this fee is paid the victim may be asked for more money from…
