Gardaí warn of loan scam where fraudsters seek advance fees

People have been warned to look out for so-called advance fee frauds in which they are requested to pay a small amount of money in order to secure a loan that never materialises.

Sophisticated in design, the scam involves legitimate-looking websites, application processes and even phone interaction.

In the run up to Christmas when people may be looking to secure funds, gardaí and the Central Bank issued a detailed notice about such scams saying there are also instances of "clones" whereby the details of an authorised entity are copied to give the impression of legitimacy.

“Advance fee fraud requires individuals to pay a fee before receiving a promised sum of money which is never paid,” gardai said.

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“Gardaí have noticed an increase in this practice recently with a number of websites offering quick, easy, unsecured loans.”

Victims of the scam are asked to complete a short application which seeks their personal details. A follow-up phone call is then received from what appears to be an Irish number.

During this call the person is told their loan has been approved but they must make an advance payment before it is transferred for a variety of reasons such as insurance or setup fees.

A number of red flags to look out for include the promise of quick and easy funds, no requirement for security, and no checks on a person’s ability to repay the loan.

In many cases they do not look for documents or ID, and often the person is pressurised into accepting on the pretence the “opportunity” will be lost. Such firms are never regulated by the Central Bank and this can be checked on their website.

“There may also be instances where a firm ‘clones’ the details of an authorised entity by taking the details...and claiming to either be that entity or an associated entity,” gardaí said.

“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 but please be warned that there may be scams out there that have not yet come to the attention of the Central Bank.”