Stay Safe from Online Loan Scams
How to Stay safe from online scams and scammers
Scammers use clever and appealing schemes to lure people into handing over money. We are starting to see more scams involving online loans. With today’s technology, scammers are using fake checks along with home banking to deceive people into believing they have received proceeds from a loan.
Scammers will advertise a false promise of fast and easy cash. If something looks too good to be true, it probably is. They will ask you to provide your personal banking login credentials to facilitate the loan. This is not common. You should never provide your login credentials to anyone. The scammer will then inform you a deposit has been posted to your account and proceed to request you send money to finalize the loan. This also is not common and should be considered a red flag.
How to protect yourself
Be cautious of fake checks. Scammers will use fraudulent checks to deceive people into thinking they have received loan proceeds. The reality is that the check is not valid and will be returned, leaving the victim out of any funds that have been “paid” to the scammer. If you receive a check or deposit to your account that you are unsure of, please contact us to review.
Using reliable and credible sources to find loans can keep you and your money safe from scammers. Do your research to ensure the lender you are choosing is credible, safe, and insured. You can do this by searching the lenders phone number, or name and seeing if the lender is registered with your specified state. You can contact your states attorney general or by calling your states banking regulatory office.
Never use a mobile application like Cashapp, Venmo or PayPal to transfer money to facilitate a loan. A reliable loan company will offer direct deposit from a credible financial institution or give you a check either in person or by mail with the loan company name on it. Always be on the lookout for fraudulent lenders asking for your personal information such as your home address, social security number or your online / mobile banking login credentials. A true lender will never ask you for your banking username and password.
Be cautious about paying loans fees from loan proceeds, scammers will ask you to send funds before the loan can be finalized. When in doubt, don’t send any funds. If you or someone you know believes they were scammed, always report it to your financial institution. We also recommend filing a police report and reporting to the Federal Trade Commission online at https://reportfraud.ftc.gov/#
When you find yourself in a financial tight bind, ALWAYS come to River City FCU first, no matter your financial situation. We have a variety of products and services to fit your financial needs. Our team is here to help you in your time of need. You can give us a call, go online, or walk into one of our branches and we will help you reach financial stability.