Personal Loans Scams - Scam Alert - ACCC ScamWatch

 

View this email in your browser Scam alert  Personal loan scams What’s happening Scammers are setting up fraudulent websites offering personal loans. They are also posting online advertisements for their services on social media platforms. Once your application for a loan is approved, you’ll receive an email requesting personal information and documents. You will also be directed to pay an upfront insurance fee before any funds are released. Who’s at risk Anyone searching for a loan provider may encounter these scams People experiencing financial hardship may be particularly vulnerable What this might look like Scammers pose as financial service providers and loan brokers online. They create fake websites, post ads on social media platforms and contact people directly offering personal loans. Once you apply for a loan online, the scammer will contact you by email or social media. They will send you a loan contract and ask you for personal identification documents such as photo ID, payslips, bank statements, and login details for banks and myGov. They will also ask that you pay an upfront fee for ‘payment protection’ insurance or ‘loan establishment’ fees to secure the loan. They will not allow the amount to be deducted from the loan. Instead, they will require payment in full before any loan funds are released. They say this payment will be refunded after 3 months. These scammers may impersonate existing Australian credit licence and financial service licence holders. They may even fraudulently quote ABN registration and credit licence information from ASIC to appear genuine. Warning signs to look out for Communications that ask for your personal details and identification documents. Requests for upfront insurance payments that must be paid before loan funds are released. Requests to pay funds to a personal bank account. The loan provider is not licensed and does not appear on ASIC’s professional registers. The loan provider appears on ASIC’s investor alert list. Pressure to make payments and to pay in a particular way. Claims that insurance premium payments will be refunded after 3 months. If you’ve been affected Don’t be embarrassed about being scammed. If you’ve had money or personal information stolen, contact your bank or card provider immediately. If you think your accounts have been compromised, change your passwords immediately. Monitor your bank statements and accounts for unusual activity. If you’ve been scammed or have provided personal information, call IDCARE on 1800 595 160. Help others by reporting to Scamwatch. Stay protected STOP. Scammers create a sense of urgency. Don’t rush to make decisions about money or or about sharing personal details. Don’t let anyone pressure you into immediate action. Trust your instincts if something feels wrong. CHECK. Always verify who you’re really dealing with before taking any action. Check the organisation is licensed by searching ASIC’s professional registers. Even if the organisation is licensed with ASIC and you’ve been given ASIC company registration and licence details, check the contact by calling the organisation using a number you source yourself. Visit the Moneysmart website to check ASIC’s investor alert list. Before sending any money, check that the account name matches who you intend to send it to. PROTECT. If you’ve given money or personal information to someone you suspect is a scammer, act quickly. Visit the Scamwatch website for more information on what to do if you’ve been scammed. To report scams and find more info go to Scamwatch.gov.au You have received this email because you have subscribed to receive Scamwatch scam alerts issued by the Australian Competition and Consumer Commission. We send these alerts to tell you about new scams and how to avoid them. If you have any doubts about an email's source, verify the sender by independent means. Use their official contact details to check the email is legitimate before clicking on links or opening attachments. You can update your preferences or unsubscribe.