Loan scam: how to identify and not fall into it

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With the ease of the internet people need to be very careful not to fall for the loan scam. Just type in the word “loan” that appear thousands of websites offering you many advantages, but that’s not how it works.

There are many people who act in bad faith and you need to be very careful as this can be a trap. But do not worry! If you are looking for a loan, here are some tips to help you get out of trouble. A borrower has probably lost control of his finances, has some debt to repay or wants to realize a dream. Only not all locations are reliable and you need to pay close attention not to fall for the loan scam. It turns out that some people take advantage of vulnerability and even desperation to deal with the scam. And most of them work like this: you deposit an amount that is borrowed and if you don’t, you can’t get the loan. 

How the loan scam works

money loan

Note the following situation: You are super emotionally shaken because you have a very serious problem to solve. And start looking for a loan.

At first glance, do not suspect anything, because scammers use names of banks or known financial institutions.

They provide phone numbers, chats, so the victim can contact you. Until you come across the main point: the way they communicate.

They emphasize the problem so much, for example, that if you don’t solve it at the moment your situation will only get worse, giving you a sense of urgency so you don’t think about what you are doing. In fact, what you want is to solve that problem as soon as possible.

Most common loan scam

money loan

This is when you need to deposit a certain amount in advance. Otherwise, the loan amount is not released.

Most scams work this way. So when you ask why you need to deposit this amount, the answer is: are it bank fees or is it insurance that should be paid because you have no guarantor. Then they ask you to make a bank transfer or deposit. But the account is not from a financial institution, but from an individual. Be aware that financial institutions or banks do not accept transfers or deposits. You need a slip that identifies which lender is. Let’s see below how not to fall for the loan scam.

How to identify and not fall for loan scam

money loan

Here are the key points to help you spot the scam:

  • When asked to deposit an amount before granting the loan. That does not exist!
  • The account that the gang reports is from an individual;
  • The provided address does not exist and if it exists, it is not from the institution;
  • Pay attention to folders and leaflets. Most of the time, the text comes with many Portuguese errors, but very glaring errors.

Of course, they take advantage of their delicate financial moment and so come to propose conditions that you will not find anywhere else.

What do they promise the most? Spectacular payment conditions, very low interest rates, practically zero, and cash release at the same time. This is where you can fall for the loan scam: your emotional side speaks louder and you don’t bother to dig deeper into that company. It ends up depositing the amount they require, only there is no loan. They just disappear.

More Tips For Not Falling In The Loan Scam

money loan

Some more tips to keep you from falling for the loan scam are worth reinforcing:

  • When accessing the site, make sure you have that lock next to the address name. This means it is a secure site and has a digital certificate;
  • Take a close look at the site, what the text looks like, if the ideas are consistent, if there are any Portuguese errors, etc.;
  • Visit the Central Bank website, as it contains a list of all financial institutions authorized to operate;
  • Visit the complaint sites, such as Complain Here, and see if there are any complaints about the company.
  • Never enter any personal data such as ID number, social security number, address and credit card.

Keep in mind that, you need to surround yourself on all sides when applying for a loan.

Therefore, you should always look for a well-known company with a good reputation and authorized by the Central Bank to operate. We are not saying that applying for a loan is dangerous and unsecured. But you need to do this with a reliable financial institution. So much so that the largest banks in the country, it is possible to apply for loans through the internet, even by mobile applications. But pay close attention to all the tips we went through!


Every day more and more people fall for the loan scam simply because they don’t have the right information and are so desperate that they don’t even think about what they are doing.

They want to solve that situation and get rid of the problem. When the profiteers enter, taking advantage of their weaker condition. Be careful! Follow our tips that you can surely make your loan more secure.

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