Lloyds Bank has issued an urgent warning to consumers as the number of ‘advance fee’ loan scams has surged in recent months.
Loan scams happen when a victim is asked to pay an upfront fee - this typically involves replying to an online advert offering a ‘fast loan’ from a company they have never heard of before, though sometimes the fraudster will try to impersonate a genuine firm, according to Lloyds.
The victim will then have their application approved regardless of their credit history, however, before they can receive the loan amount, they are told they must pay an upfront fee by bank transfer.
