OPP warning of loan scam after Prescott man falls victim
Posted Feb 7, 2019 09:39:00 PM.
This article is more than 5 years old.
A 25-year-old Prescott man is out $140, but it's what scammers might do with his personal information that has him worried.
Ontario Provincial Police say he applied for an on-loan on January 30, through a business known as Californialoans.com.
He was advised that prior to receiving his $2000.00 loan he had to purchase $140.00 of Steam on-line video gift cards and provide them with the gift card codes. He was also required to provide his personal information.
The victim provided what was requested and he never received the loan.
Police are urging the public to be very suspicious of someone offering easy money. Scammers are skilled at convincing people that their loan offer is real.
The OPP says loan scam ads are found through online advertising or deceitful websites, designed to look like legitimate lending institutions. A victim responds to the ad and is asked to provide personal information such as a copy of a passport, SIN, driver's licence and bank account details which can result in ID theft. The scammers then ask the victim to send money to secure the loan. The loan is then never received by the victim.
Warning signs and how to protect yourself:
- It is illegal in most provinces for a company to request an upfront fee prior to obtaining your loan.
- Beware of companies offering a guarantee on your loan, even if you have bad credit or no credit.
- Should you be requested to make payments via email money transfer, money service business, or pre-paid credit cards, cease all contact immediately.
- Contact consumer protection agencies and regulators for lenders in your province to ensure that the company is a legitimate lender.
- Advertising through a recognized media outlet does not ensure that the ad was placed by a legitimate company.
