Whether you need some cash to pay off holiday debt, get snow tires or cover a surprise medical bill, be aware that loan scammer are all too eager to offer you their fake services.
Here are some real Summit member stories to show you how loan scams typically play out and help you stay safe:
Member Story: Immediate Approval
Soon after shopping online for a loan, one of our members got a call from a "loan broker” saying his application was approved – even though he didn’t provide any information that lenders usually require. At the so-called broker’s request, the member shared his mobile banking login so the “loan” could be deposited as a check into his account. But the check was counterfeit, and scammers now had access to his accounts.
Member Story: Providing Online Banking Details
Another Summit member applied online for a $10,000 loan to pay off debt. This member was told that the loan was approved, and the funds would be placed in his account. The fraudulent lenders even sent a loan agreement and monthly payment summary, so he thought this was a legitimate lender. He provided the fraudulent lenders his online banking credentials. The member then noticed transfers in his account that weren’t made by him.
Member Story: Overpayment
A member received a loan offer via text. She took up the offer and provided her online banking credentials. The scammer told her they had mistakenly deposited a check for more than the loan amount and requested the member send $900 cash to make up the difference.
Key Red Flags From Our Member Stories:
1. Requests for Online or Mobile Banking Info
Loan scammers often ask for your digital banking credentials so they can “deposit money directly” into your account. Legit lenders would never ask for this.
2. Debt Cancellation Offers
From mortgages to student loans and credit cards, you may see ads or hear from “private companies” promising to settle your debt. Steer clear and seek solutions from trusted organizations, like your financial institution.
3. Guaranteed Approval
Legitimate loans still have requirements – including credit, proof of income and more. Fraudsters also like to promise no credit check in return for an upfront fee.
4. Requests for Payment Through Untraceable Methods
Scammers like money sent through prepaid cards, gift cards, wires and even cryptocurrency because the transfer is typically irreversible.
5. Sense of Urgency
Many types of scams, especially loan scams, encourage you to act fast. Take a step back and evaluate the situation before committing to anything under pressure.
If you think you’ve been a victim of a loan scam, reach out to your financial institution right away. Summit members, contact us at 800‑236‑5560.
And like our members’ stories above, please share details with us when you hear of, or experience, a possible scam! This helps us inform and protect our members and community.
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