My credit didn’t use to be the best.

Not many people these days have great credit. But it’s not just annoying – some people are falling victim to scammers because they have bad credit that makes them desperate enough to fall for an offer that is too good to be true.

How the scam works is a person receives an email advertising a guaranteed loan. The email displays a logo and contact information for what appears to be a legitimate business. Before proceeding with the offer, you search for the company online to determine if they can be trusted. You find that the company name and contact information listed in the body of the email matches with a legitimate company, so you proceed with the loan. 

“It seemed too good to be true and it was,” said a Burnaby resident who got one of those emails. “I really needed someone to believe in me and it cost me. I got swindled because my credit sucks – basically.”

According to the Better Business Bureau, once you agree to the loan, they take your personal banking information and deposit the loan into your account via a cheque. Then, they demand you buy insurance for the loan before the cheque officially clears. 

These scammers know that consumers are increasingly aware of phishing attempts, so they use the identity of a business that can easily be verified as legitimate online. This allows them to build up the victim’s trust and ultimately get access to their bank accounts.

How to avoid fake loan…

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