- ASIC is aware of people pretending to be a legitimate lender (e.g. banks, credit unions) and offering fake loans to Australian consumers. This usually occurs after the consumer completes an online enquiry form expressing interest in a loan.
- Be wary of unexpected calls, SMSs or emails offering loans that ask for personal information.
- Avoid loan offers that have upfront fees for ‘insurance’ or ‘tax’.
Examples of how fake loan offers work
ASIC is aware of scammers using a number of tactics to offer fake loans to Australians. Scams can take place when someone contacts you by email or text saying you are approved for a loan and asks you for your personal information. Other scams use an online loan enquiry form, send you a loan offer and ask for more personal information.
Below are some examples of common tactics used by scammers:
- The ‘lender’ is using an email account with a free provider (such as Gmail or Outlook). Legitimate lenders are unlikely to use free email providers.
- The lender doesn’t have a website.
- You are asked to make a payment for some sort of insurance or tax before they can release the loan funds.
- An invoice asks for you to make payment by direct deposit into a bank account in the name of a person (not the name of the lender).
- Requesting copies of your ID or a photo of you with your ID.
Think you have been scammed?
If you think you or someone you know has been scammed, lodge a report of misconduct with ASIC and report the matter to police. You can also make a report to the Australian Cyber Security Centre at ReportCyber. Your report may disrupt the scammers and hopefully will warn others to avoid it.
More information
- ASIC’s Moneysmart website has more information about COVID-19 and making financial decisions, banking and credit scams and identity theft.
- If you have been financially affected by COVID-19, Household Relief loans without interest can help cover rent and utility bills.
ASIC is Australia’s corporate, markets and financial services regulator.