Rapid rise of ‘advance fee’ loan scams: Cases rise by 90 per cent in just 12 months
So-called ‘advance fee’ loan scams have soared by more than 90 per cent this year, according to new data shared with City PM this morning.
The rising number of cases comes as Lloyds Bank warned that, on average, the amount stolen from victims is around £231.
“Advance fee” loan scams take place when victims applying for a loan are asked to pay a for an upfront fee by fraudsters, who can either impersonate a legitimate firm or pretend to be representatives of a new, unknown company.
According to Liz Ziegler, Lloyds’ retail fraud & financial crime director, criminals will exploit the cost of living crisis and its effect on households.
“They know that some people will need more support with their money, and victims in these cases often have a poor credit score or may already be in financial difficulty,” she said.
“The important thing to remember is that a genuine loan company will never ask for an upfront payment before releasing the funds.”