"Loan Fee Fraud Surges by a Fifth as Christmas Approaches"

The UK's financial regulator has recently warned of an increase in scams promising non-existent loans as fraudsters look to pressure consumers struggling to make ends meet before Christmas.  The Financial Conduct Authority (FCA) polled 2000 UK consumers last month.  The FCA found that loan fee fraud rose 21% year-on-year for the 12-month period November 2021–October 2022.  This doesn't include those who reported to the FCA but managed to avoid being scammed out of money.  The FCA noted that victims typically receive an unsolicited call, text, or email offering them a loan and are pressured into making an upfront payment as a "deposit" or "admin fee" in order to proceed.  However, there is no loan, and the scammers pocket the cash.  The FCA found that two-fifths of consumers feel pressured by family and friends to maintain their usual Christmas spending this year, while a third are concerned about how they will afford it.  More than one in eight participants said they plan to take out a loan this year.  Worryingly, the regulator claimed that nearly two-thirds (64%) of consumers don't know what loan fee fraud is, and only a fifth (22%) can identify its warning signs.  The FCA noted that the average amount lost is 260 pounds ($322), more than half the amount UK consumers expect to spend on presents this Christmas.  The FCA stated, "if you are considering taking out a loan, please pause and check the FCA's Register to make sure you are dealing with a legitimate lender.  Don't let scammers be the ones enjoying your Christmas this year."

Infosecurity reports: "Loan Fee Fraud Surges by a Fifth as Christmas Approaches"