Online loan seekers should be reminded not to fall for advance fee loans.

 

The Better Business Bureau warns online loan seekers. The Better Business Bureau reports that advance-fee loan frauds are on the rise. An Ontario resident who recently applied for an internet loan lost $9,100. The loan was requested for through Livron Financial Services. This was a hoax. The loan applicant was to get $50,000. The contract, however, required the payment of a $5,000 bail. After paying the $5,000, he was instructed to pay additional fees for currency conversion, insurance, and processing. 

Despite paying the whole amount, he did not receive the loan. It was eventually discovered that this was a hoax. The phone number listed as belonging to the company was inactive.

The bureau's president, Angela Dennis, stated that the victim's experience with such fraud serves as a caution to anyone looking for a loan online. Dennis also stated that you never need to pay upfront to secure a loan.

According to the Canadian Anti-Fraud Centre (CAFC), advance fee loan fraud cost Canadians $3,494,925 last year. The loss for 2022 was $1,898,181. To avoid fraud, CAFC advises consumers to be aware that a credit check is not required if the loan is guaranteed.