Scammers are looking to prey on financially vulnerable households seeking loans as living costs surge, a regulator is warning. The Financial Conduct Authority (FCA) said it was receiving a growing number of calls about loan fee fraud, when people pay fees up front for loans that they never receive.
Instead of getting the loan they were hoping for, those struggling with their finances end up even worse off - losing £280 to the scam on average. Victims tend to be aged 25 to 45, are slightly more likely to be male (60%) than female (40%) and often work in manual occupations or are unemployed, according to the regulator.
A joint statement from Mark Steward, executive director of enforcement and market oversight, and Sheldon Mills, executive director of consumers and competition at the FCA, said: "The rising cost of living is making 2022 a hard year financially. And there are scammers out there looking to make it even harder.
