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Stay One Step Ahead of Loan Scammers

February 23, 2024 Whether you need some cash to pay off holiday debt, get snow tires or cover a surprise medical bill, be aware that loan scammer are all too eager to offer you their fake services.
Here are some real Summit member stories to show you how loan scams typically play out and help you stay safe: Member Story: Immediate Approval
Soon after shopping online for a loan, one of our members got a call from a "loan broker” saying his application was approved – even though he didn’t provide any information that lenders usually require. At the so-called broker’s request, the member shared his mobile banking login so the “loan” could be deposited as a check into his account. But the check was counterfeit, and scammers now had access to his accounts. Member Story: Providing Online Banking Details
Another Summit member applied online for a $10,000 loan to pay off debt. This member was told that the loan was approved, and the funds would be placed in his account. The fraudulent lenders even sent a loan agreement and monthly payment summary, so he thought this was a legitimate lender. He provided the fraudulent lenders his online banking credentials. The member then noticed transfers in his account that weren’t made by him. Member Story: Overpayment
A member received a loan offer via text. She took up the offer and provided her online banking credentials. The scammer told her they had mistakenly deposited a check for more than the loan amount and requested the member send $900 cash to make up the difference.

KEY RED FLAGS FROM OUR MEMBER STORIES:

1. Requests for Online or Mobile Banking Info

Loan scammers often ask for your digital banking credentials so they can “deposit money directly” into your account. Legit lenders would never ask for this.

2. Debt Cancellation Offers

From mortgages to student loans and credit cards, you may see ads or hear from “private companies” promising to settle your debt. Steer clear and seek solutions from trusted organizations, like your financial institution.

3. Guaranteed Approval

Legitimate loans still have requirements – including credit, proof of income and more. Fraudsters also like to promise no credit check in return for an upfront fee.

4. Requests for Payment Through Untraceable Methods

Scammers like money sent through prepaid cards, gift cards, wires and even cryptocurrency because the transfer is typically irreversible.

5. Sense of Urgency

Many types of scams, especially loan scams, encourage you to act fast. Take a step back and evaluate the situation before committing to anything under pressure.
 If you think you’ve been a victim of a loan scam, reach out to your financial institution right away. Summit members, contact us at 800‑236‑5560. And like our members’ stories above, please share details with us when you hear of, or experience, a possible scam! This helps us inform and protect our members and community.

Want More Fraud-Fighting Tips?

Keep exploring more ways to  Sources:
Debt.org You might also be interested in For many, Social Security is a main source of income later in life, and no one wants to lose out on those funds or a perceived opportunity for more be If there’s anything we know for sure about scammers, it’s that they’re going to take advantage of new technology. Artificial Intelligence (AI) is crea With over 500 million daily active users, Instagram has become a popular app for sharing photos, connecting with friends and even following the lives “My daughter was excited to watch her high school team play for the state title. To livestream the game, she clicked what she thought was an official Fraudsters are getting trickier by the day, and it can be tough to tell if that email, text or online ad is fake or legit. Especially when they pose a For many, Social Security is a main source of income later in life, and no one wants to lose out on those funds or a perceived opportunity for more be Whether you’re grabbing a bite to eat at an airport restaurant or at a happy hour after work, chances are you’ll see a QR (quick response) code on the Whether you need some cash to pay off holiday debt, get snow tires or cover a surprise medical bill, be aware that loan scammer are all too eager to o Scammers love fresh opportunity and they’ve found it in cryptocurrency, like Bitcoin and many others. Along with running investment scams, crypto frau Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA