Advance Fee Loan Scam Scoops $1500 from Victim

Ontario Provincial Police Crime report

Internet and phone scams seek to separate you from your money. Often these fraudsters prey on the most vulnerable in society, seniors, the poor, and others who they find the various vulnerabilities people have. Knowing more about the types of scams and sharing that information can assist in shutting down these frauds.

The Ontario Provincial Police (OPP) is warning residents about the advance fee loan scam which claims that everyone is approved for a loan regardless of credit history. This after an individual was defrauded in Norfolk County.

The Norfolk County OPP is urging all residents to be vigilant after police were contacted by a concerned resident after they applied for a loan online. The resident had written correspondence, however, no funds ever arrived after they paid $1,500.

Advance-fee loan perpetrators are preying on unwary consumers, taking their money for the promise of a loan or credit. The scam artists often impersonate legitimate lenders to entice consumers into falling for their offer.

Legitimate offers of credit do not require an up-front payment. Legitimate lenders may guarantee firm offers of credit to “credit-worthy” consumers, but first, they evaluate the consumer’s creditworthiness and confirm the information in the application.

Often, advance-fee loan scammers direct applicants to send the fees via a money transfer service payable to an individual, rather than a business. They ask applicants to use a “password code” with their payment, which allows the scammers to hide their identity.

Don’t pay for the promise of a loan. Ignore any ad or hang up on any caller that guarantees a loan in exchange for a fee in advance. Remember that legitimate lenders never guarantee or say that you will receive a loan before you apply or before they have checked out your credit status or contacted your references, especially if you have bad credit or no credit record.

Don’t give your credit card, bank account, or Social Insurance Number on the telephone, by fax, or via the Internet unless you are familiar with the company and know why the information is necessary.

Don’t make a payment to an individual for a loan; no legitimate lending organization would make such a request. Never wire money or send money orders for a loan through a money transfer service. Legitimate lenders don’t pressure you to wire funds.

If you are not absolutely sure who you are dealing with, get the company’s number in the phone book or from directory assistance, and research the company online to ensure that you are dealing with a legitimate company.

The Ontario Provincial Police (OPP) Norfolk County Detachment continues to receive reports from residents stating they have been or attempted to be defrauded. Don’t be a victim. Fraud is a multi-billion dollar enterprise that will only stop when the scammers stop getting money, banking information or personal information.


For more information on fraud, call the Canadian Anti-Fraud Centre at 1-888-495-8501 or

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