What are advance fee loan scams?

On Behalf of | Mar 9, 2022 | White Collar Crime

Missouri residents’ lives could be changed for the worse if they are arrested on fraud charges. One currently popular example of such a crime is the advance loan fee scam.

What is an advance loan fee scam?

An advance-fee loan scam is a type of white-collar crime that usually targets individuals who have bad credit. The scam promises a loan earlier than usual by paying money beforehand. However, the person never receives a loan. The scam exploits people who need money.

How can you recognize an advance loan fee scam?

If you’re seeking a loan for any reason, you should be able to recognize an advance loan fee scam when you see it. If a website claims that you can get fast cash but are required to pay a fee ahead of time, your guard should immediately go up. Legitimate lenders don’t require a fee to extend a loan to borrowers. Scam artists, on the other hand, will ask for money upfront and then not deliver on their promises.

It’s also common for these white-collar crimes to include a fake business name and a toll-free number. The criminal might even use a legitimate company name and address, but in reality, they are not associated with that name or address.

How can you protect yourself?

Always recognize a scam when you see it. Protect yourself by ignoring any offers online, in print or via phone that claims to promise you a loan in exchange for a fee. A legitimate loan never requires an upfront payment by the borrower.

If something sounds too good to be true, that’s usually the case. Reviewing the company is important. You can check for it via the Better Business Bureau or BBB.

Being accused of a white-collar crime like advance loan fee scams is daunting. Fight back against the charges to protect your rights.