"Summer Spending Pressure Fuels Loan Fee Fraud Fears"

The UK’s financial regulatory recently warned consumers to be on the lookout for loan fee fraudsters after revealing new research claiming that many Brits are worried about their finances this summer.  The Financial Conduct Authority (FCA) said it polled 2000 adults in late July and found that 55% are more concerned about their bank balance this summer than last.  Rising food (63%) and energy costs (53%) were cited as the biggest concerns, but summer spending pressures, including entertainment costs (24%) and summer holidays (22%), also loomed large for respondents.  The FCA noted that more than a third (35%) said they’re worried about how they’re going to pay for summer holidays this year.  As a result, a quarter (24%) of British consumers are turning to credit or loans to fund their summer spending plans.  The FCA stated that this could open the door to loan fee fraud, a type of advanced fee fraud where individuals pay a fee to access a loan that never materializes.  The FCA warned that such scams tend to peak in summer, costing victims an average of 260 pounds.  The FCA said there was a 26% year-on-year increase in complaints from victims last summer versus 2021.

Infosecurity reports: "Summer Spending Pressure Fuels Loan Fee Fraud Fears"