Police Warning As Fraudsters Take On False Identity In Loan Scam

Derbyshire detectives are urging the public to remain vigilant to payday loan scams as offenders take on a false company identity.

The National Fraud Intelligence Bureau (NFIB) have release a report stating how fraudsters are targeting potential victims claiming to be from a genuine loan company.

The offender will offer the victim a high interest loan and mirror the demands from loan brokers for an advance fee, adding to the legitimacy of the scam.

The victim is advised that once they have sent the payment through, they will then receive their loans.

Once they make the payment they do not see any of the cash promised by the fraudster.

Detective Constable Julie Wheeldon from the East Midlands Fraud and Financial Investigation Unit said: "More and more people are turning to payday loans, particularly to cover the cost of Christmas, so it may be tempting to go for a deal offered by a fraudster.

"Repeated calls to the victims from the fraudulent loan company could see some cases making more than one payment and the victim then becomes more desperate for cash than when they first started.

"Remaining vigilant over the Christmas period is important but there are simple steps that we can all take to stay safe online and prevent ourselves from becoming a victim of this type of fraud.

"Ensure the legitimacy of the company by contacting Trading Standards for advice and checking reviews that the organisation has during an online search."

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