We’ve noticed that there has been an influx in fake loan scams, and we’ve compiled a guide to help you spot them. We here at Sunny Loans UK understand how difficult it can be to decipher fake loans from real ones, that’s why we’ve decided to help you find out if a loan is legitimate or not.

Fake Loan Scams: How They Work So You Won’t Be Fooled

What Are Fake Loan Scams?

Fake loan scams can be difficult to spot and they can be quite sophisticated. Many of these scams may appear legitimate at first, but the closer you look, the more suspicious they become. These scams will take your details under the guise of offering you a loan, and will work to drain your bank account. They might offer you one over the phone, or with a fake website.

How To Avoid Fake Loan Scams Over The Phone?

If you’re targeted by scammers over your phone, there are ways that you can avoid them. If you don’t recognise a phone number, it’s better not to answer it. Scammers may also send a text. The best thing you can do is not open these texts. If your bank contacts you about a loan, they will have other ways of contacting you.

Not only that, but you will be able to check for any suspicious activity on your banking app, and you can contact your bank directly. When there is suspicious activity in your bank account, your bank will be able to check for you and inform you if anything is wrong.

If someone calls you on an unknown number and claims to be from your bank, we would recommend you hang up immediately, especially if they want to discuss suspicious activity on your account. While it may seem rude, it is better to appear rude than get tricked into giving your details over the phone.

Signs Of A Fake Loan Scam Online

If you’re looking for a loan online, we recommend that you find a legitimate site. However, we understand how difficult it can be to separate these from illegitimate sites. The best way to identify them is by asking yourself: Is this too good to be true? Here at Sunny Loans UK, we believe that if something seems too good to be true, you should treat it with suspicion.

These fake loans prey on those who are desperate, so even if you need the money, you should always think with a clear head. But what should you look for? Well, here’s what the fake loan site will likely advertise.

No Credit Checks

A legitimate lender will always require a credit check so they know you’ll be able to repay them. If you have a high score, you’ll be able to repay in full and on time. But if they aren’t interested, it means that they’re main concern is your personal information. If there’s no credit check, then you should stay away.

No Physical Address

Legitimate lenders have a physical address where you can contact them if you need information. However, if they don’t have a physical address, then it’s likely the fake lender doesn’t want to be found. If you don’t find an address in your search online, then you should stay away from them, as if you need to take legal action, you may not be able to.

Urgent Offer Advertised

Very few lenders have special offers on their loans, because they are there to offer steady rates. However, scammers may prey on those who will see a deal and act on it immediately. These techniques are often used in marketing, because they prey on those who don’t want to miss out on a good deal. Legitimate lenders don’t care for advertising special offers, so if you see one of these, you should not act on them.

Up Front Payment

Up Front Payment

If you’re told to pay up front for your loan, claiming insurance or processing fees, then you shouldn’t believe them. Any lenders who ask for this want to get money quickly, and most lenders will wait for you to pay them back as per your contract.

Approval Guaranteed

There are no guaranteed loans, as lenders need to run a credit check and verify your details are all correct. If you’re offered guaranteed approval, it will be because a scammer doesn’t want you to find a legitimate lender. A legitimate lender does a thorough credit check to ensure you can pay them back, while a scammer is more concerned with getting all of your details so they can take your money.

Gift Card Payment

If a lender requests payment in the form of a gift card, then they will do this so they won’t leave a paper trail. Gift cards work similarly to cash in this respect. If you pay with your debit or credit card, your bank will be able to trace where the money has gone.

However, with cash or gift cards, the money is separate from your bank account. Should a scammer pressure you to pay them with a gift card, you should search for a legitimate loan instead.

How Do You Know A Loan Is Legitimate?

When you’ve never searched for a loan before, you might not know if or how a lender is legitimate. That’s where we can help you.

Easy To Contact

Legitimate lenders will have a customer support team on standby, whether it’s by phone or email, ready to answer any questions you have. If you need an address, you should be able to find it easily through their site.

Secure Website

Legitimate websites will have a small padlock on the left of your address bar. These sites will ensure that you’re protected against any hackers.

Credit Checks

All reputable lenders will run a credit check to confirm you’re real, and to observe your credit history. As we mentioned above, if a lender doesn’t run a check, they’re likely not reputable.

Clear Terms And Conditions

A legitimate lender will have a contract written out that will offer transparency about what you pay and how much interest you may accumulate. Their terms will have everything you need to know. If the contract isn’t complete, you should hold off signing it.

Reviews Of The Site

There should be reviews of the website on TrustPilot or another reputable site. You should look for a site that has positive reviews, and if there aren’t any, you should find a site that has reputable reviews and is recommended by other users.

Conclusion

Fake loans are an issue that has been becoming more common over the years as more fake websites have been appearing. We hope that with our help at Sunny Loans UK, that you will now have the tools at your disposal to prevent yourself from being a victim. If you’ve noticed any unusual activity from your bank account, or you’re being contacted about a loan, you should take action immediately.

It’s essential that you do your research before agreeing to a loan. You don’t want your personal information to go to the wrong person. With our help, we hope that you’ll find it easier to get a legitimate loan from a reputable lender online.

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