FINANCE LOAN FRAUD – ADVANCE FEE FRAUD
An Garda Siochana at the Garda National Economic Crime Bureau wish to alert the Public to an ongoing Advance Fee Fraud related to on-line websites offering un-secured Loans
A number of websites offering un-secured loans are targeting vulnerable persons and persons who have had difficulty obtaining loans (for example: because of a poor credit rating) from established financial institutions in a Fraud known as ADVANCE FEE FRAUD!
1. The Victim applies for a loan through a website that offers loans which it is claimed will be processed quickly. The website may also claim that loans are available without the need for a good credit rating or the need to provide collateral for the loan and/or to provide any documentation apart from basic personal details. Some of these firms also claim to be regulated by the Central Bank of Ireland (‘Central Bank’) when this is not the case
2. The Victim will receive a call or communication within a very short time (often minutes) informing them that their loan application has been approved and providing details of the amount of the loan and the monthly repayment
3. The Victim will then be asked to send an amount of money to the lender in ADVANCE of the loan amount being issued, with different reasons given for this ADVANCE FEE, for example
a. As an up-front fee, or
b. To pay for Personal Protection Insurance on the loan amount, or
c. To discharge overseas taxes
d. To show that the Victim has the ability to meet the loan repayments
4. No Loan monies are ever issued to the Victim and the ADVANCE FEE is lost
The following are some warning signs
• The website will claim to offer a fast and easy way to apply for a loan on line
• The loan will be approved very quickly and without checks on identity, the ability to pay or credit rating
• No hard copy/paper documentation will be required by the lender
• The lender will ask for a payment of some kind in ADVANCE of the loan being given to the applicant
• The lender will NOT be authorised by the Central Bank of Ireland although it may claim (on its website or during a telephone call) that it is.
WHAT CAN YOU DO?
• NEVER apply for a loan from an entity that is not authorised by the Central Bank
• ALWAYS check the official Central Bank website to see if the firm is authorised by the Central Bank. The register of authorised firms can be accessed at http://registers.centralbank.ie/
• There may also be instances where a firm "clones” the details of an authorised entity by taking the details of an authorised entity and claiming to either be that entity or an associated entity. Further information in respect of unauthorised firms that have already come to the attention of the Central Bank is available on the Central Bank’s website at https://www.centralbank.ie/regulation/how-we-regulate/authorisation/unauthorised-firms, but please be warned that there may be scams out there that have not yet come to the attention of the Central Bank.