Business

Loan Scam: What tactics do loan scammers utilise?

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Urgent, time-restricted offers

Scammers frequently claim that their offer is time-sensitive or limited to a select few, instilling a sense of urgency and scarcity to encourage rash actions.

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False threats to your credit score

Some scammers may scare you by erroneously suggesting that asking for loans elsewhere may ruin your credit score. 

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Manufactured urgency

Scammers may push on immediate document submission or fee payment, claiming it is important to "secure the loan" before it disappears.

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Fear tactics for non-compliance

They may try to instill fear by threatening serious repercussions, such as the loss of a huge opportunity if you refuse to accept the loan.

 

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Guaranteed Approval

They may claim to approve a loan regardless of the victim's credit history or financial circumstances. 

 

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Fake Documentation

They may provide fake loan documents, contracts, or agreements that seem legitimate at first glance but contain hidden clauses or terms that are highly unfavorable to the borrower.

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