Loan scams happen when a victim is asked to pay an upfront fee for a loan.
A person will typically reply to an advert for a fast loan and will have their application approved regardless of their credit history. Before they receive the loan, they are told them must pay an upfront fee to cover insurance for the loan.
Once this fee is paid, the victim does not hear from the company again and the loan is never received.
Loan scams are a type of advance fee fraud.
Fraud has been committed when money has been lost.
If fraud has been committed, report it to Action Fraud.
See also:
Loan repayment fraud
Advance fee fraud
Work from home scams
Business opportunity fraud
