Scammers and predatory lenders will make unsolicited contact with victims via social media, SMS, messaging apps or cold calls. They will offer loans and loan services with what appear to be very attractive rates.

They will often try to create a false sense of urgency to pressure their victims into acting immediately. As a result, their victims may ignore red flags.

To gain their victims’ trust, scammers may claim to be licensed moneylenders. Some will even impersonate legitimate companies by setting up company websites that look genuine (e.g. using a legitimate company’s name and licence number).

Victims who respond favourably may be asked to share their personal details (including their banking/login credentials), purportedly to verify their employment and facilitate loan approval.

Some scammers will instruct their victims to transfer money to them. They may claim that the money is to pay for certain application and processing fees, or taxes/duties that must be paid before the loan can be disbursed. These scammers will disappear without a trace once they have received the money.

Scammers seek to obtain personal and banking information to access victims’ accounts, assets, or charge fees for services and loans they never deliver. They may also use this information to harass victims and demand more money.

Predatory lenders will charge hidden fees and exorbitant interest rates.