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Reports of loan fee scams have jumped, says bank

Scams where victims are asked to pay fees upfront for goods or services such as loans that never materialise have surged, figures from Lloyds Bank indicate.

People with a poor credit history may be particularly likely to be targeted as households feel the squeeze from cost-of-living pressures.

The number of “advance fee” frauds reported to Lloyds Banking Group by customers jumped by 82% across 2022, compared with 2021.

The average amount lost by victims in 2022 was £711, lower than an average of £1,194 in 2021, suggesting fraudsters may be pursuing a higher volume of lower value scams in the current economic environment.

Lloyds said its figures suggest people living in deprived areas may be particularly likely to report being scammed in this way. It matched analysed victim location data against the English Indices of Deprivation.



Fraudsters will often target people on low incomes or with a poor credit history

Liz Ziegler, Lloyds Bank

People aged 25 to 34 were the most likely age group to report falling victim, followed by those aged 35 to 44.

Loan fee scams are a particular concern as fraudsters will often target people on low incomes or with a poor credit history, Lloyds added.

It said reports of loan fee scams have more than doubled over the past 12 months, compared with the previous year. The average amount lost by victims last…

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