Scammers impersonate lenders to steal thousands

The Better Business Bureau serving the Canton and Greater West Virginia area offers tips and advice for consumers to avoid fraudulent practices.

BBB Scam Tracker receives reports of scammers posing as legit loan providers. Fake lenders guarantee a quick loan with no upfront costs. But victims who provide their banking information to scammers are left in the dark.


You receive an email announcing a secured loan. The email displays a logo and contact information for what appears to be a legitimate loan company. Before making the offer, you research the company online to determine if you can trust it. You find that the name and contact details match a legitimate business, so you proceed with the loan.

Once you have accepted the loan, the “lender” takes your personal banking information and deposits the loan into your account by check. Then they ask you to take out insurance for the loan before the check is officially cashed. Unfortunately, the loan check turns out to be a fake, which victims often don’t realize until after they’ve paid the “insurance.” One victim told BBB: “The money will be available the next day, but it will be rejected by your bank three days later.”

These scammers know that consumers are becoming more aware of phishing attempts, so they use the identity of a company that can easily be verified online. This allows them to gain the trust of the target and gain access to their bank account.

How to avoid fake loan offers

Avoid unsolicited loan offers. Scammers use quick money offers to lure you in, don’t fall for this. Whether they contact you by phone, email or text or send you loan offers in the mail, approach all unsolicited offers of money with caution.

Expect a credit check. These scams often prey on people who cannot easily qualify for a loan. No legitimate lender will give you a loan without doing a credit check.

Make sure the business contact information matches the sender information in the email. Brand IDs can easily be copied and included in the body of an email, so the most important piece of information a consumer should verify is the sender’s email address. The domain of the email address usually matches the domain of the official website and should be free of random letters or numbers.

Research lenders before accepting an offer. When dealing with an unknown company, don’t just verify that it’s legitimate by researching its name online, or you might miss some surprising information. Check ratings and reviews to see what others are saying and look for a BBB business profile.

FOR MORE INFORMATION – You can connect with trusted lenders in your area by visiting Be careful and beware of “secured” loans with upfront fees with this BBB article at Find valuable information to protect yourself from other scams at If you’ve been the victim of a loan scam (whether or not you lost money), report it to Your report can help others avoid being scammed.

FOR INFORMATION BBB – Visit or call 330-454-9401 to find a business, file a complaint, write a customer review, read tips, find our events, follow us on social media, and more!

Sara R. Cicero