Warning issued for personal loan shoppers as scam sites surface
Scammers are targeting would-be borrowers with fake sites
Scamwatch has issued a warning to Aussies shopping around for a personal loan, off the back of a rise in fraudulent websites.
Scammers are setting up fake websites where would-be borrowers can apply for a personal loan. Once 'approved' the applicant receives an email asking for personal information and documents. Applicants are then asked to pay an upfront insurance fee before funds are released.
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What to watch out for
Scammers are creating fake websites and social media posts, pretending to be financial service providers and loan brokers. They may even contact potential victims directly.
Once you apply for a product, they'll get in contact and request additional information, some of which may be standard for a loan. This could be personal identification documents like photo ID, payslips, bank statements and login details.
They'll also ask for an upfront fee for 'payment protection' or 'loan establishment', which they may say will be refunded.
Be aware of:
- Any communication that asks for personal details or documents.
- Requests for upfront payments to be paid before funds are released.
- Requests to pay funds to a personal bank account.
- Claims that insurance premium payments will be refunded.
Check:
- Whether the loan provider is licensed and on ASIC's professional registers.
- Whether the loan provider is on ASIC's investor alert list.
Anyone is at risk
Scamwatch is warning that anyone searching for a loan could be at risk, but people who are experiencing financial hardship could be especially so.
If you're struggling with your finances and in need of a personal loan, it can be particularly tempting to apply with anyone who seems to offer a solution. There are lending options available to people in hardship or with poor credit scores, but this highlights the importance of doing research through reputable sites or working with a finance broker.
If you think you've been affected, here's what you should do:
1. Contact your bank or card provider immediately if you've had any money or personal information stolen.
2. If you think your accounts have been compromised, change your passwords immediately.
3. Monitor your bank statements and accounts for unusual activity.
4. If you've been scammed or have provided personal information, call IDCARE on 1800 595 160.
5. Report the situation to Scamwatch.
If you're in need of a personal loan, comparison sites like Finder only work with trusted, licensed providers. Compare your options through our tables and find the right product for you.
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