Public warned of increase in online loan fraud

As people are busy preparing and shopping for Christmas, Gardaí have noticed an increase in this practice with a number of website offering quick, easy, unsecured loans.

The person seeking the loan is required to fill in a short application that looks for their details.

On receipt of these details, the victim received a follow-up phone call from what appears to be an Irish number.

They are informed during the call that their loan has been approved but they are required to make a payment in advance of the load being paid into their account.

The reasons given for this vary but can include insurance fees, set-up fees or first instalment in advance.

The websites used in such scams look professional but Gardaí say there are a number of red flags that people should look out for.

These include:

• The common trend with all these sites is that they are offer quick and easy money.
• No guarantor or security is sought and no checks on the individual’s ability to pay will be made and no documents/proof of ID will be sought 
• The requirement that a fee is paid in advance of the service being provided.
• The fraudster will put pressure on the victim to act quickly or the opportunity will be lost 
• The company offering the loans is not be regulated by the Irish Central Bank. Even though they may claim to be so regulated or will say they don’t need regulation as they are experienced.

Gardaí are warning people to never apply for a loan from an entity that is not authorised by the Central Bank.

People can check the official Central Bank website to see if a firm is authorised here.

There are also instances where a firm 'clones' the details of an authorised entity by taking their details and claiming to either be that entity or an associated entity.

Further information on unauthorised firms that have already come to the attention of the Central Bank can be found here.

It is important to be aware that there are scams out there that have not come to the attention of the Central Bank yet.

An Garda Síochána are advising the public to:

• Never allow your account to be used by another to move money or to hold money for any period (long or short) as this enables fraudsters to complete their crimes, and deprives innocent victims of their hard-earned cash.
• Unfortunately, there are no cheap easy loans available in the market and if the offer "sounds too good to be true, it almost certainly is too good to be true.” 
• Always report the matter to your local Garda station.
• Stop and think before engaging 
• Never give away personal data to people you don’t know 
• Always be fraud aware, particularly when you receive an unsolicited phone call, email, text or other communication that leads to a request for personal or banking information.
• Never click on a link in an email, text or other message unless you know the source