A loan offer can be fraudulent even when the website, messages, and proposed terms look polished. Verify the legal business, the person contacting you, and every payment instruction through channels you found independently. A directory profile or positive review is useful context, but neither guarantees that a loan offer is genuine.
Warning signs to investigate
The FTC's advance fee loan guidance warns about supposed lenders who promise approval and then demand money for “insurance,” “processing,” or other reasons before granting a loan. Treat an unexplained fee, pressure to act immediately, or a refusal to provide written terms as a reason to pause and verify.
An upfront charge is not by itself proof of fraud. Legitimate transactions may include an appraisal deposit or another disclosed third party cost. Ask who receives the payment, what service it covers, whether it is refundable, and what happens if the loan is declined. Compare the invoice, proposed documents, and payment recipient.
Check identity and authority
Ask for the lender's legal name, the name of the entity that will fund the loan, and the contact's role. Check applicable state regulator records and independently located business details. Ask for recent references, then reach them using contact information you verify yourself. Review the written conditions, fees, maturity, and collateral with a qualified professional when the stakes warrant it.
Protect funds and documents
Wires can be a normal part of closing, but a last minute change in instructions is a serious warning. The CFPB closing scam guidance recommends confirming account details with trusted representatives in person or at a previously established phone number. Do not rely on a phone number or reply link in the message that changed the instructions. Be similarly careful with requests for identity documents or account credentials.
If you may have sent funds to a scammer
Contact your bank or wire provider immediately and ask whether the transfer can be recalled. Preserve messages, account details, documents, and transaction records. The FBI Internet Crime Complaint Center provides reporting steps for business email compromise; the FTC fraud portal accepts scam reports. Also contact the relevant state regulator or local law enforcement when appropriate. Recovery is uncertain, so speed matters.
Use our directory as one source of leads and context. Independently check the business and transaction before sharing sensitive information or sending money.
FAQs
Is every upfront loan fee a scam?
No. Some transactions have disclosed appraisal or other third party costs. Ask who receives the payment, what it covers, whether it is refundable, and what happens if funding does not occur.
What makes an advance fee request suspicious?
Be wary of guaranteed approval followed by an unexplained payment demand, especially when the supposed lender will not provide verifiable identity, documents, or a clear service.
How do I check a private lender?
Verify the legal entity, applicable credentials, contact details, funding source, written terms, and references through independent channels.
Are wire transfers always suspicious?
No. Wires are common at closing. Independently confirm the recipient and account details using a phone number established before receiving instructions, especially if they change.
What should I do after a suspected fraudulent wire?
Contact your bank or wire provider immediately about a recall, preserve the records, and report the event to IC3 and relevant authorities.
Can reviews prove an offer is genuine?
No. Reviews or profiles are context. They do not authenticate the person contacting you or the payment instructions for a specific transaction.