How to Know Loan Scams and Fraudsters in Nigeria

It’s tempting to accept any offer for a personal loan when you need money and have a bad credit score. Scammers, on the other hand, are waiting to take advantage of the situation. They may advertise for loans on their websites. In this post, we’ll go over some of the warning indicators that victims of loan scams commonly face.

How can I tell if someone is attempting to defraud me with a loan?

Here are some of the simplest signs that something isn’t quite right:

1. Your credit history is of no interest to them.

Before making a loan, legitimate lenders assess a person’s creditworthiness. Never believe promises such as “Bad credit? What if you don’t have any? No problem!” If you didn’t, you’d be a victim of loan fraud.

2. Phone Offer

Making loan proposals over the phone is against the law. Any offer must be written down. All connected fees must be clearly stated.

3. Advance Fees

These may be passed off as application or document fees by the lender, but they aren’t. Consider the following scenario: Before you may acquire a loan, you must send money. That is a ruse. A loan fraud. All costs must be disclosed by legitimate lenders. They are usually folded into the loan’s cost rather than being paid up front.

4. Wire Transfers

It’s a red flag if the lender asks you to transmit money for fees. Never send money to a single person. Always inquire about the lender’s physical location. Then, to confirm whether it’s a legal business or a loan scam, contact the state’s Attorney General or Financial Regulations office.

5. Plagiarized Name

In order to appear authentic, skilled loan scammers will create a business name or website that appears or sounds legitimate. It’s always a good idea to double-check the address and phone number with the Better Business Bureau. Please be wary if the mailing address looks to be a Post Office Box.

6. Personal Information

Never give away your social security number, date of birth, bank account number, or any other sensitive personal information unless you’re confident you’re working with a trustworthy lender. Scammers can take money from your bank account or use your personal information to commit identity theft. There are now banks that give loans without collateral without requiring a lot of information.

7. State of Registration

Lenders and loan brokers must register in the states in which they operate. In your state, you can check with the Attorney General’s Office of Financial Regulation or the Department of Banking. While this does not ensure a positive experience with the lender, it can aid in the detection of a loan fraud.

8. Customers Service

You can call the phone numbers of reputable lenders. If you aren’t satisfied with the company’s customer service, you should not do business with them. Also, don’t settle for phone robots. You should be able to communicate with someone.

9. Reviews

Online reviews have become increasingly significant. They can also assist you in finding a trustworthy lender. You can look up the company or person’s name on Google while also checking Facebook, the Better Business Bureau, or other lending review sites. Take note of any negative reviews and you will identify Loan Scams. It’s a red flag if there’s uniformity across multiple locations, with everyone having a negative opinion.

10. Warning Signs

There are a few indicators that should cause you to be concerned right away. Be wary of emails that contain spelling, capitalization, punctuation, and/or grammar mistakes. That’s a sign of inexperience. If you are given a grace period (for example, a year with no payments) before the loan must be repaid, be skeptical. If the lender claims that they don’t run credit checks and will grant money despite of past financial troubles, be wary.


The number of loan frauds appears to be growing by the day, with many people becoming victims. Contact your local law enforcement as soon as possible if you’ve been the victim of a loan scams or personal loan fraud.

Source: Nyscinfo

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