People could be at greater risk of loan fee fraud this Christmas, the City regulator has warned. The Financial Conduct Authority (FCA) typically receives an increase in reports of loan fee fraud over the festive period.
Loan fee fraud happens when someone pays a fee for a loan they never receive – and the FCA is concerned that rising financial stress could place more people at risk of scammers’ tactics this year. An often-used tactic by loan fee fraudsters is to pressurise people who are seeking quick access to cash – but those falling victim stand to lose £260 on average.
The regulator said such scams have already increased in frequency in the past year, with the number of cases reported rising by around a fifth (21%) between November 2021 and October 2022 compared with the same period a year earlier. The FCA is asking people to check its register if they are asked to provide an upfront payment for a loan.
