Protect Yourself from Loan Application Scam Calls

Scammers are getting creative with their tactics, and loan application scam calls are on the rise. These calls often claim to be from a legitimate lender, but in reality, they're just trying to steal your personal and financial information.

Be cautious of calls from numbers that don't match the lender's actual phone number. According to our research, scammers often use fake numbers that look similar to the real thing.

If you receive a call from a lender you've never dealt with before, don't give out any sensitive information. Scammers will often try to pressure you into divulging your personal details, but remember that reputable lenders won't ask for sensitive information over the phone.

Legitimate lenders will never ask you to pay a fee upfront for a loan. They'll also never ask you to provide your social security number or other sensitive information over the phone.

Robocalls are a major problem, and it's essential to understand what they are and how to deal with them. Robocalls are calls made with an autodialer or that contain a prerecorded or artificial voice message. Unfortunately, advances in technology have made it easier for scammers to make robocalls from anywhere in the world.

Many robocalls are legal, but it's a complex issue to solve. The FCC has rules in place to help identify and block illegal calls, but it's a challenging task. To make a prerecorded telemarketing call, a caller must obtain your prior written consent, which can be on paper or through electronic means.

Some robocalls are exempt from these rules, such as emergency services calls. However, all prerecorded voice message calls must include certain identification information. Here's what you need to know:

The FCC has also declared that calls made with artificial intelligence or AI-generated voices are considered "artificial" voice calls under the TCPA. This means that voice cloning technology used in common robocall scams targeting consumers is illegal absent prior consent or a recognized exemption.

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Caller ID spoofing is when a caller deliberately falsifies the information transmitted to your caller ID display to disguise their identity.

Spoofing is often used as part of an attempt to trick someone into giving away valuable personal information so it can be used in fraudulent activity or sold illegally.

However, spoofing is not always illegal, and there are legitimate uses for it, like when a doctor calls a patient from her personal mobile phone and displays the office number rather than the personal phone number.

To combat neighbor spoofing, the FCC has required the phone industry to adopt a robust caller ID authentication system.

Neighbor spoofing displays a phone number similar to your own on your caller ID to increase the likelihood that you will answer the call.

If you've been scammed, it's essential to cut off communication with the scammer and contact your bank or credit union to cancel transactions and freeze your accounts.

Documenting the scam by gathering emails, texts, screenshots, and any other evidence can help you end up with a positive outcome after reporting the scam to authorities.

The FCC has issued hundreds of millions of dollars in enforcement actions against illegal robocallers and requires phone companies to implement caller ID authentication to help reduce illegal spoofing.

Here are some steps to take if you suspect you've been scammed:

Remember, people make millions of fraud reports each year, and taking action can help you recoup some or all of the stolen funds.

You can take steps to protect yourself from unwanted loan application scam calls by using call-blocking and labeling services. These services can detect fraudulent calls based on patterns, consumer complaints, or other means.

Phone companies and app developers offer call-blocking and labeling services that can help identify potential scams. FCC rules don't prohibit these technologies, but providers are encouraged to establish a way for blocked callers to contact them to resolve the issue.

If your number is blocked or labeled, it doesn't necessarily mean you're the one blocking calls. You can legally block your phone number when making calls, so it appears as "unknown" - this is not the same as spoofing.

To protect yourself, ask for written confirmation of any debt you allegedly owe. Scammers often refuse to provide this. If they do, request the caller's and business's information, including their full name, company name, address, and phone number.

Robocall rules are complex, but here's the lowdown. Autodialed calls to wireless phones are prohibited without prior express consent, except for emergency calls regarding danger to life or safety.

Some robocalls are exempt from the National Do Not Call Registry requirements, including informational calls from political campaigns. However, these calls still need to follow specific rules, such as including the caller's identity and phone number.

The FCC requires all prerecorded calls to identify the caller and include a contact phone number. This rule applies to both landline and wireless phones.

If you're receiving unwanted calls, you can report them to the FCC. The agency also empowers phone companies to block by default illegal or unwanted calls based on reasonable call analytics.

Here are some key rules to keep in mind:

By understanding these rules, you can better protect yourself from unwanted robocalls.

Caller ID rules for telemarketers are in place to protect consumers from unwanted calls. Telemarketers must transmit or display their telephone number, as well as their name or company name, on behalf of which they are making the call.

This rule applies to all telemarketers, even those that already have an established business relationship with you. They must also display a telephone number where you can call during regular business hours to ask to be removed from their call list.

Here's a summary of what telemarketers must do:

By following these rules, telemarketers can help ensure that consumers are not overwhelmed with unwanted calls.

You can block the transmission of your phone number when you make calls, so your number will appear as "unknown." This is not spoofing, but rather a way to protect your identity.

FCC rules don't prohibit call blocking or labeling technologies, but they do encourage providers to establish a means for a caller whose number is blocked to contact the provider to try to remedy the problem.

If you're contacted by someone you suspect is a scammer, don't share your personal information with them, including your account number(s), social security number, etc.

Scammers often won't provide their business information, but if they do, you can research whether or not the company is legitimate. Legit debt collectors should willingly provide their business information when requested.

To protect yourself, ask for written confirmation that you owe a debt, and request the caller's and business's information, including their full name, company name, company address, and company phone number.

Here are the details you should request from a caller:

A guaranteed loan approval is a major red flag that you might be dealing with a scammer. They often guarantee approval without a credit check, targeting borrowers with low credit scores.

Legitimate lenders typically review credit reports and assess the likelihood of repayment. Some lenders offer loans to borrowers with no credit history, but they'll usually request income, employment, or other personal finance information.

Be cautious of loan scammers who use these tactics to lure in unsuspecting borrowers.

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Red flag number one is when a lender guarantees your approval without doing a credit check. This is a major sign that you might be dealing with a scammer.

Some lenders do offer loans to people with no credit history, but they'll typically ask for information about your income, employment, and other personal finance matters.

Guaranteed loan approval is a red flag because legitimate lenders want to review your credit report to determine how likely you are to pay the loan back in full.

Advertisements that promise guaranteed approval before you've even applied are also a warning sign. A trustworthy lender can't guarantee you'll get a loan without reviewing your credit and finances.

High-interest lenders may provide a loan with no credit check, but many still do a soft credit pull and review your bank accounts before approval.

Lenders that promise you'll get a loan with no credit check are often trying to attract low-credit-score borrowers who might not get approved elsewhere.

Scammers often target people with poor credit scores, so if a lender is willing to approve you without checking your credit, it's probably a scam.

Be wary of lenders that promise you'll get a loan with guaranteed approval, as this is often a sign of a scam.

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If a lender has no physical address, it's a significant red flag. Scammers often avoid listing physical addresses to hide their identities and escape being caught.

Legitimate lenders should have a physical business address where their employees work. Some scammers may present a fake address, so always confirm the location via online map services.

Reliable lending institutions, even online lenders, should have at least one physical address you can quickly look up online. This physical address and other contact information for the business should be visible and easily accessed on the lender’s website.

A lack of a physical address is a sign that the lender is trying to hide something. Proceed cautiously if you cannot verify a lender’s location with basic online research.

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If you've been scammed, it's essential to take immediate action to minimize further damage. Cut off communication with the scammer to prevent them from getting more information from you.

Contact your bank or credit union as soon as possible to cancel transactions, freeze your accounts, or issue fraud alerts. They may even contact you if they suspect your identity was stolen.

Gather as much evidence as you can, including emails, texts, screenshots, and any other documentation of the scammer's actions. This will help you when reporting the scam to authorities.

Here are the steps to take if you suspect you've been scammed:

Be wary of scammers who try to rush you into making a decision about a loan. They might tell you the offer is only available "today only" or threaten consequences if you don't apply immediately.

Legitimate lenders give you time to think and make an informed decision. They won't try to pressure you into acting quickly.

Scammers often use pressure and urgency to convince people to act immediately without enough information. They might tell you the offer won't last long and that you must decide quickly.

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Legitimate lenders know that whether to get a loan is a big decision, and they wouldn't try to rush you. While not all deals last long, you should still have a few days or even weeks to make your decision.

If a lender is pressuring you to apply now, it's likely a scam. Legitimate lenders let customers make informed decisions.

Don't be fooled by scammers who ask you to pay upfront fees before receiving a loan. Legitimate lenders will never ask for this.

If you've been scammed, don't panic. You're not alone, and there are steps you can take to minimize the damage.

Cut off communication with the scammer immediately. Any further communication could inadvertently give the scammer more personal or financial information.

Contact your bank or credit union as soon as possible to cancel transactions, freeze your accounts, or issue fraud alerts. Your bank or credit union may even contact you if they suspect your identity was stolen.

Document the scam however you can, gathering emails, texts, screenshots, and any other evidence of the scammer's actions.

File a report with the police, including any documentation you've gathered. An official police report could help stop or even catch the fraudster.

You can help prevent future scams by reporting your story to the FTC, BBB, your state attorney general's office, and even the Federal Bureau of Investigation (FBI). The website fraud.org will let you anonymously report loan scams to the National Consumers League.

If you've lost cash, consider a personal loan from a legitimate lender to help you afford your monthly bills while you're waiting on a resolution for the scamming you experienced.

Here are the steps to take if you suspect you've been scammed:

1. Try to get your money back by reaching out to your bank card issuer immediately.

2. File a report, which can help investigators prioritize scams that affect many people.

3. Get support from a nonprofit credit counseling service to help you budget, manage debt, and find community resources.

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4. Find the cash you need by comparing loans from multiple reputable lenders to find affordable financing.

Red flags to watch out for in personal loan scams include:

Personal loans can be a helpful tool for managing debt, but it's essential to consider the pros and cons before applying.

A personal loan can help borrowers consolidate debt by combining multiple high-interest loans into one loan with a lower interest rate. This can simplify payments and potentially save money on interest.

However, credit score requirements can be a significant con, as lenders often have minimum credit score requirements for personal loans. A good credit score can increase the chances of approval and lower the interest rate.

Personal loans can also be used to make a large purchase, such as a car or home improvement project. This can be a convenient option for those who don't have the cash upfront.

A bad online reputation is a major red flag when it comes to lending companies. Researching a lender's online reputation can confirm or quell your suspicions.

Enter the company's name into the CFPB's complaint database and the Better Business Bureau's directory to see what others are saying about it. This can give you a good idea of the lender's track record.

Searching online for the lender's name and the word "scam" may also surface regulatory actions against a legitimate lender or links to online communities where people have shared their experiences. California's DFPI even uses Reddit to research companies.