Payday Loan Scams: What They Are and How to Avoid Them


It appears to be genuine! What Could Possibly Go Wrong? Actually, quite a bit.

Scammers have plenty of time to come up with new schemes and put them to the test. As a result, they never run out of novel methods to keep their plan smart. Customers with payday loans are the focus of one variant that appears every now and again. The fraud might affect all clients, regardless of whether they’ve interacted with such organizations before or not.

The scammers pretend to be representing a legitimate (or at least authentic-sounding) firm in the most recent iteration. Scammers pretend to be from the firm and send out loan solicitations on their behalf while having no affiliation with it.

They may be quite convincing, especially if they use threats or intimidation while claiming to be able to access your personal information. They frequently acquire the outcomes they want from their target by using the legitimacy of a respectable corporation or organization, intimidating rhetoric, and relative anonymity on email, the internet, and even the phone.

Here are some tips to keep it from happening to you.


The con artist will approach you through email or phone to make an offer or demand payback of a previous obligation (one which is probably inexistent). Fraudsters have recently launched loan offers claiming to help consumers settle past debts, and they’ve even packaged the offers into a specific form of support in return for the customer repaying the other payday loans as well.

They will ask you to send money to them as a “processing fee,” a “good faith deposit,” or as a way of “verifying your identity/trustworthiness.” To do so, they will request wire transfers or the purchase of a prepaid debit card or gift card from a merchant. They will next ask for the card data in order to verify the card’s legitimacy. For example, they could urge you to buy an iTunes card for $200 to $400 and then submit the card’s data. If you give them that information, they will keep it for themselves. It’s nearly hard to track the information back to the scammers, and there’s no loan, of course.

Scammers may also try to persuade you to give them your internet login ID and password in order to obtain access to a mobile app. They utilize mobile check depositing to deposit bogus checks into your bank account and then ask you to withdraw the funds. They then request that you send it back to them by a different means, such as Western Union or prepaid cards, as indicated in the preceding paragraph. They ensure that once you’ve completed the process, you’ll receive the entire loan amount. Examples: They instruct you to give them the $480 that you recently deposited to take advantage of the $2,500 in loan proceeds. Now that they have the card details and the money that is on it. The check that they deposit into your account will nearly always be returned and you won’t get the loan.


  • Don’t divulge any personal details (e.g. social security numbers, credit card, or account information) to any individual, website, or company without verifying their legitimacy–especially if you did not initiate the contact.
  • Be aware of entities that often suggest to suggest they’re attempting to commit fraud. For example, they frequently employ emails that are not for business (such like [email protected], [email protected], or similar, free, and easily-obtainable email addresses) to reach you. They may send you emails that threaten criminal or legal action in the event that you don’t respond. They could contain broken English or typographical spelling mistakes.
  • Never wire money, or provide information about your debit or prepaid card to be to be a “show of good faith.”
  • Keep track of all outstanding debts and the contact details of your lender to be able to tell who attempts to force you to pay back an unresolved debt.
  • Review your accounts regularly and registers for any unrecognized transactions. Check your credit report regularly– is the only official federally authorized site to get your free annual credit reports.
  • If you are approached by someone who claims they owe you a debt and you are unable to prove it, ask for proof (as the law stipulates). This is especially important when you don’t recognize the debt.
  • Be cautious of any phone or email call that has an urgent need due date, deadline, or request to collect personal information.
  • Make sure that debt collection agencies that are legitimate can’t threat the person you are dealing with with arrest or legal action, in the same way as they are able to demand personal financial details. Collections are subject to regulations set by the Federal Fair Debt Collection Practices Act.

One of the greatest methods to avoid being a victim of such scenarios is to deposit your funds with a reputable firm such as 3Rivers. In contrast to fraudsters who make misleading promises to clients, we help our customers comprehend the value of money on a regular basis. We cultivate connections in order to understand our members’ financial needs. Together, we can help people find true hope and faith in the knowledge that they are informed, aware, and safe while banking with a firm that will look out for them.


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