Loan and debt relief scam
Quick answer
A fake lender or 'debt relief' service promises guaranteed approval or reduced debt, then asks for a fee before any money or service appears.
- Stop and verify the lender independently through your financial regulator's register before sharing anything or paying.
What it is
A fake lender or 'debt relief' service promises guaranteed approval or reduced debt, then asks for a fee before any money or service appears.
How it works
You receive an unexpected offer of a pre-approved loan or a way to clear your debt. After you show interest, you are asked to pay a processing, insurance, registration, or 'release' fee - and the loan or relief never arrives.
Red flags to watch for
- Guaranteed approval with no credit check
- An upfront fee before you receive any funds
- Pressure to pay quickly to 'lock in' the offer
- Contact from an unofficial number, app, or social account
Example
A message says your loan is approved and asks for a small processing fee before release. This is risky because legitimate lenders deduct fees from the loan and never ask you to pay first.
What not to do
- Do not pay any fee to receive a loan or debt relief
- Do not share bank login, card, or ID details to 'process' it
- Do not act on urgency or 'limited time' pressure
The safe next step
Stop and verify the lender independently through your financial regulator's register before sharing anything or paying.
Often seen on: WhatsApp, SMS, Email, Instagram.
Commonly targets: People seeking loans or struggling with debt.
How to verify safely
- Do not use links, phone numbers, QR codes, or email addresses from the suspicious message.
- Open the official app or website yourself - type the address manually.
- Call a contact you have saved, or the number printed on your bank card.
- If you are threatened or in immediate danger, contact local emergency services or police.
How to report it
Report to your national fraud authority and financial regulator. If you paid, contact your bank immediately.
Find official links for your country in the scam reporting directory.
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Frequently asked questions
Do real lenders ask for an upfront fee?
Reputable lenders do not ask you to pay a fee before releasing a loan; any genuine charges are taken from the loan amount or disclosed in a regulated agreement.
How do I check if a lender is genuine?
Look the lender up on your country's financial regulator register using a website you type yourself, not a link from the message.
I already paid a fee - what now?
Contact your bank or payment provider immediately to try to stop the payment, save evidence, and report it. Be wary of anyone offering to recover the fee for another fee.