UK-based retail and commercial Lloyds Bank has issued a warning to its consumers as the number of advance fee loan scams have increased in Q1 2022.
According to the bank, victims are asked to pay an upfront fee for receiving a fast loan and typically involves replying to an online advert offering fast loans from obscure companies or fraudsters trying to impersonate genuine firms. After submitting an online request, the victim will see their application approved, regardless of their credit history but they will be asked for an upfront fee paid by bank transfer before having access to their borrowed funds. Once the fee is paid, fraudsters might even ask for further payments.
Reports say this type of fraud has almost doubled since the beginning of the year, with authorities and bank issuing official warnings to population to consider twice before applying for loans.
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