BBB warns of increase in loan scams


MADISON (WKOW) — The Better Business Bureau says it has been receiving an increasing number of reports from people about scammers pretending to be legitimate loan providers so that they can get your personal information.

Here’s how it works: A company that seems legit will email you and say they’re offering a Guaranteed Loan. Part of the con is that they choose a business that wouldn’t raise red flags, even if the person were to investigate them just to make sure.

When a person agrees to the loan and fills out the paperwork, the company will deposit what ends up being a fake check into your bank account.

“Scams are always ever-evolving,” says Tiffany Schultz with the Better Business Bureau. “We’ve learned throughout the years that scammers impersonate legitimate companies such as Amazon, PayPal, even the Social Security Administration. [This time around] they have tried to fool consumers with legitimate loan companies.”

It may seem tough to spot this scam since scammers are hiding behind a legitimate business, but Schultz says that if you receive an unsolicited email, text, or any type of communication first from the business offering the loan, it should be a red flag.

“No loan company is going to reach out to you unsolicited,” said Schultz.

For more information or to report a scam, click here.

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