Lending Victory Scam - How to Protect Yourself

How the Scam Works

• Unsolicited Alerts: You receive an email or text about a loan, balance, or payment you have no record of.
• Baiting Responses: The message tricks you into clicking a link, calling a fake customer service number, or replying "NO" or "CANCEL" to stop the fake transaction.
• Phishing for Data: Once you engage, the scammers try to steal your Social Security number, bank routing numbers, or online banking passwords under the guise of "verifying your identity" or "canceling the account".
• Advance-Fee Fraud: In some variations, they may claim you have a guaranteed loan but must pay an upfront processing fee, insurance fee, or collateral via digital apps or gift cards.

Critical Red Flags to Watch For

• Guaranteed Loans: Real lenders never guarantee approval without checking your credit history.
• Upfront Payments: Legitimate financial institutions do not ask you to pay fees out-of-pocket before disbursing a loan.
• High-Pressure Language: Phishing templates emphasize a sense of urgency, claiming you must act immediately or face financial penalties.
• Requests for Credentials: No legitimate institution will ever ask for your online banking password or a text verification (OTP) code.

What to Do Immediately

1. Do Not Click or Reply: Interacting with the message confirms your phone number or email address is active, which invites more scam attempts.
2. Check Your Credit Directly: Do not use the links in the message. Go directly to a trusted site like AnnualCreditReport.com to ensure no unauthorized accounts have actually been opened in your name.
3. Block and Report: Report the message as junk on your mobile phone, forward scam texts to 7726 (SPAM), and file a formal report with the FTC Fraud Reporting Portal.
4. Freeze Your Credit: If you accidentally shared sensitive information, contact the major credit bureaus (Equifax, Experian, TransUnion) to place a freeze on your credit reports to prevent identity theft.